Trade Compliance in Malaysia

Overview by
International Conventions
Member of World Trade Organisation
Party to the Kyoto Protocol
Party to the Washington Convention on International Trade in Endangered Species of Wild Fauna and Flora
Party to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal
Party to the Montreal Protocol on Substances That Deplete the Ozone Layer
Main International Economic Cooperation
APEC, ASEAN, AFTA and the ASEAN - China Free Trade Area.
The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).
Party of the ATA Convention on Temporary Admissions and Use of the Carnets

As a Reminder, the ATA is a System Allowing the Free Movement of Goods Across Frontiers and Their Temporary Admission Into a Customs Territory With Relief From Duties and Taxes. The Goods Are Covered By a Single Document Known as the ATA Carnet That is Secured By an International Guarantee System.
Look Up the Other Member Countries And Read the Web Pages of the World Customs Organization Devoted to the ATA Carnet.
Party of the TIR Convention

As a Reminder, the TIR Convention and its Transit Regime Contribute to the Facilitation of International Transport, Especially International Road Transport, Not Only in Europe and the Middle East, But Also in Other Parts of the World, Such as Africa and Latin America.
The UNCTAD Website Allows You to Read the TIR Convention, See the List of Member Countries And to Find Further Information.
Accompanying Documents For Imports
Goods shipped to Malaysia must be accompanied by the following documents:

> the single administrative document (SAD)

> the commercial invoice
It must be drawn up in triplicate, in English

> a phytosanitary certificate
It is necessary for fruits, vegetables, seeds and other plants and is issued by the regional service for the protection of plants.

> a health certificate
It is necessary for meats and is issued by the departmental directorate of veterinary services.

> a certificate of free sale for cosmetics
It is issued by the Federation of perfume industries

> the transport documents and packing list

Free Zones
Free zones have been set up to facilitate operations for exporting companies, which export all or almost all of their products. There are two types: free industrial zones (FIZ), mainly for manufacturing companies which make or assemble products destined above all for export; and free commercial zones, for commercial activities. The FIZ allow exporting companies to benefit from minimum Customs formalities and to import raw materials duty free, as well as parts, machinery and equipment they use directly in manufacturing, and these companies also benefit from minimum formalities when they export their finished products. Companies located in FIZ must export at least 80% of their production and mainly use imported raw materials and components. In the regions where FIZ are neither practical nor desirable, companies can set up licensed manufacturing warehouses (LMW), which have the same advantages.

There are free industrial zones for manufacturing industries at Sungai Way, Hulu Kelang, Kinta, Jelapang II, Perai, Bayan Lepas, Sama Jaya, Telok Panglima Garang, Baru Berendam, Tanjung Klingand, Johor Port.
The free commercial zones are Northport, Southport, Westport, Butterworth, Bayan Lepas, the international airport of Kuala Lumpur, Rantau Panjang, Pengkalan Kubor, Johor Port, Tanjung Pelepas and Stulang Laut.

For Further Information
Royal Malaysian Customs Department (RMC)
PCAM  (National agency for the promotion of trade)
Non Tariff Barriers
Import regulations in Malaysia are liberal compared to other ASEAN countries' regulations. Most goods can be freely imported under General Open License. Some specific sectors, considered as strategic, are protected by a system of restricted import licenses. Items covered under this category are the iron and steel industry, cement, the sector of the automobile and its components and also polyethylene and polypropylene.
The restrictions in import licensing also affect other sectors in terms of approval (electrical products) and sanitary items (foodstuffs or veterinary products), without being a protectionist measure.
Quotas are not frequently applied to imports and apply to certain products whose local production is favored (rice, meat, fruits and vegetables). In extreme cases (frozen chicken, eggs, liquid milk or sugar), if it is considered that the local production is self-sufficient, import is forbidden. There are other products that are forbidden or subject to special licenses for safety, religion or morality reasons.
Sectors or Products For Which Commercial Disagreements Have Been Registered With the WTO
As a plaintiff with Pakistan, Thailand and India against the United States about the prohibiting of shrimp imports; as defendant following a complaint by Singapore about the prohibiting of polyethylene and polypropylene imports.
Assessment of Commercial Policy
Malaysia and WTO
Barriers to exchanges, inventoried by the United States
Barriers to exchanges, inventoried by the EU
Sanitary and phytosanitary barriers, inventoried by the EU
Find more on about Trade Policy in Malaysia.

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  • Azmi & Associates

    Corporate Law Firm, Malaysia