EXPORT FLOW FOR BREAK BULK CARGO - (PORT KLANG)

Shipping Agent/ Shipper/ Forwarding Agent & Freight 2 Forwarders

Submit freight quotation and finalise freight charges

Attachment 1b

5
a)

Shipping Agent
Receive Shipping Instruction from FA or shipper Prepare Bill of Lading Prepare IED Pre advice Port/ Terminal on cargo booking

9
Inland Transporter
a) Pick up goods/cargo from Exporter

1a

Importer & Bank

Issue Purchase Order/Advise on LC (if any)

b) c) d)

Customs
a) Received electronic K2 b) K2 channeled by Customs to PIA (if required) c) Receipt of duty payment (if applicable) d) Approved and received K2

b) Pay Port Charges

PIAs

Approval of Export Permit (if applicable)

10 Terminal Operator
Port Operator loads cargo on board

6 1b Exporter
Documents preparation - Invoice - Packing List - Shipping Instruction (if any)

4
Forwarding Agent/ Freight Forwarder
a) Received instruction for cargo clearance & submit Shipping Instruction b) Prepare K2 c) Apply for Permit (if applicable) d) Submit application for cargo delivery to warehouse & obtain approval e) DG Declaration (if dangerous goods)

Port Operator/Terminal (Warehouse)

Receive shipment/consignment details through online or EDI

11 Shipping Agents 7
a) b)

Forwarding Agents
Arrange and deliver cargo to Port/Terminal warehouse Submit application for cargo delivery

a) b)

Prepare Bills of Lading Submit export manifests to Custom/ Port Operator

12

Document readiness

A: Documents Preparation

B: Inland Transportation & Handling

C: Customs Clearance & Tech Control

D: Ports & Terminal 1 Handling

No

Process Flow

Document

Process Time

Cost

1a

Importer issues Purchase Order to Exporter. A Letter of Credit (LC) advise is issued by the bank (for applicable shipments)

Purchase Order Letter of Credit Invoice Packing list Shipping Instruction

2 working days (LC advise) Forwarding charges: RM100 RM150 per consignment (Based on the volume)

1b

Exporter prepares commercial Invoice, Packing List & Shipping Instruction (after the order is confirmed) * Shipping booking can be done in advance * Shipping Instruction when all details are available

1 day (document preparation) Overall 2 days

Submit Freight Quotation under commercial rate and finalise freight charges with shipper. - Receive and accept booking from shipper. - Provide shipper with booking confirmation. * Freight Quotation and freight charges can be done in advance PIA approves Export Permit (if applicable) a) Forwarding Agent received instruction for cargo clearance and submit Shipping Instruction b) Prepare K2 c) Apply for Export Permit from PIA (if applicable) d) Forwarding Agent submit application for cargo delivery to warehouse/obtain approval e) DG Declaration (if dangerous goods) * Export Permit can be done in advance

Freight Quotation Shipping Instruction

3 4

Export Permit Shipping Instruction K2 Export Permit DG Declaration

Based on PIA client charter Overall 2 days EDI charges: RM0.88 per kb.

1 hour

(RM5 per declaration)

No 5

Process Flow Shipping Agent a) b) c) d) Receive Shipping Instruction Shipping Agents Prepare Bill of Lading Prepare Integrated Export Document (IED) Pre-advice Port/Terminal on cargo booking

Document

Process Time

Cost

Shipping Instruction IED 1 hour

RM110 per B/L

Port Operator receive shipment/consignment details as export pre-advise through online or EDI a) Arrange and deliver cargo to Port/Terminal warehouse Submit application for cargo delivery

Export preadvise details IED

5 min

No cost

No cost

b)

1 hour

No

Process Flow

Document

Process Time

Cost

a)

Customs receives electronic K2 declaration (paperless transactions only) Electronic K2 is channeled by Customs to PIAs if required. Inspection or endorsement of permit by PIA (if applicable) Payment of duty (if applicable), either by Electronic Fund Transfer (EFT) or manual

K2 Export Permit K2 Export Permit

2 5 min

No cost

b)

2 5 min Bank Draft Cheque

No cost

c)

10 15 min

d) 9

Approved/released K2 from Customs.

K2 IED Load List IED Load List e-manifest K2 IED Load List 30 minutes 1 hour Within 7 days 30 min

EFT charges : RM 15.00 per B/L No cost Port charges: as per tariff

Inland Transporters a) Pick up goods/cargo from Exporter b) Pay Port Charges Port Operator loads cargo onboard Shipping Agent send electronic manifest (e-manifest) to Customs (within 7 days after vessel departure) Document readiness

10 11 12

RM30 per B/L Forwarding charges: RM100 RM150

Legend (Export Flow):

PIAs Permit Issuing Authorities K2 Form Customs declaration form for export IED Integrated Export Document * EFT * Electronic Fund Transfer (applicable to only 8 banks) *Participating banks: 1-8 1. Maybank; 2. CIMB Bank; 3. PBB; 4. RHB Bank; 5. EON Bank; 6. Alliance Bank; 7. Affinbank; and 8. Ambank.

IMPORT FLOW FOR BREAK BULK CARGO (PORT KLANG)

2 1 Importer
Documents preparation (if applicable) Obtain original documents from shipper or banker Apply Import Permit

Attachment 1a
12 Port Operator/ Terminal
a) Received documents from Forwarding Agent Verify/receive goods from vessel Collect Port Charges

PIAs
Approval of Import Permit (if applicable)

Shipping Agent
a) Submit e-manifest to Customs/Port or Terminal Operators b) Release DO with exchange of original BL c) Submit DG Declaration (if dangerous goods)

b)

3 Forwarding Agent/Freight Forwarders

a) Received instruction for cargo clearance b) Prepare K1/IID c) Apply Permit (if applicable)

c)

Customs 5 Automatically processes & registers

K1 and sends response back to forwarding agent Received printed K1 & supporting documents

13

Forwarding Agents
Pay duty on behalf of Importer Pay Port Charges - Attached K1/DO & other documents Obtain Gate Pass Collect goods Verification cargo and documents by Customs and Security Cargo transport to Importer

14 Importer
Received cargo

a) b)

7 Verification of exemption if relevant 8 Assessment of goods 9 Physical inspection (if necessary) 10 Approved K1 11
Sign off K1 Form to authorize release of cargo

c) d) e)

f)

A: Docum ents P reparation

B: Custom s Clearance & Tech Control

C: P orts & Term inal Handling

D: I nland 1 & Transportation Handling

No 1

Process Flow Importer prepares necessary documents, including: - Certificate of Origin (COO) documentation from FTA Countries (if applicable) Collecting shipping documents from banks (if applicable) Apply import permit from PIAs if applicable

Document COO

Process time 3 working days

Cost No cost

Shipping documents Import Permit Import Permit

3 working days Pre-arrival 5 working days RM5 (DNT) PIAs own fees

PIA approve Import Permit (if applicable) Note: Total no of agencies: 25 Live implementation: 19 Paperless: 16 Coming on board: 4 under development (1 Peninsular, 3 Sarawak) 2 Awaiting instruction from MOF

a)

Importer instructs Forwarding Agent to clear cargo (together with supporting documents such as Bill of Lading, Permit, Invoice & Packing List) * Forwarding Agent perform document preparation if instructed by Importer * Forwarding Agent submit K1 electronically (CUSDEC) through SMK-DNT interface. Forwarding Agent prepare K1 and IID Forwarding Agent apply Permit (if applicable)

Bill of Lading Permit Invoice Packing List

1 day (all documents in order and for normal clearance) Preparation: 1 hour

No cost

b) c)

K1 IID Permit

No 4

Process Flow a) Shipping Agent send electronic manifest (e-manifest) (Ocean Bill of Lading) to Customs and Port Operator within 24 hours of arrival of vessel, in accordance with Section 52, Customs Act. In practice, they are allowed to submit much earlier. Shipping Agent to release Delivery Order for exchange of original Bill of Lading. Shipping Agent submit DG Declaration (if dangerous goods)

Document e-manifest

Process Time Pre-arrival

Cost EDI charges RM30 per B/L

b)

Delivery Order Bill of Lading DG Declaration K1 Form

1 hour

RM110 per B/L RM0.88 per kb.

c) 5

1 hour Response time: 5 20 min. EDI charges: RM0.88 per kb. (RM5 per K1) Forwarding charges: RM100 RM150 per consignment (Based on the volume) No cost

Customs computer system automatically processes & registers K1 and sends response back to Forwarding Agent with registration number

Customs receives Form K1 and supporting documents for Customs clearance. i) Basic supporting documents: Invoice, Packing List and Delivery Order. ii) Other supporting documents such as Permit, COO, CJ5/CJ5A depending on transaction type. (Applicable to parallel transactions only not applicable in paperless)

K1 form Invoice Packing List Delivery Order Permit COO CJ5/CJ5A BG/G Bond

1 hour

No 7

Process Flow For those consignments claiming Treasury/LMW exemption, K1 and supporting documents have to be submitted to Customs Import Branch, North Port for the verification of exemption. Assessment of goods by Senior Customs Officer to determine duties/taxes payable which includes the following processes : i) Verification of particulars declared against supporting documents; ii) Instruction for physical inspection if necessary; iii) Classification/Valuation; iv) Approval Physical inspection of cargo by Customs (if necessary)

Document K1, Treasury Exemption Letter K1 Form Invoice Packing List Delivery Order Permit COO CJ5/CJ5A

Process Time 15 - 30 min. depending on number of items 5 - 20 min

Cost No cost

No cost

K1 Form

1 hour

No cost

10

If no physical inspection, Customs will grant approval in SMK.

K1 Form, PIA Permit

2 - 5 min. 30 min. with physical inspection

No cost

11

Customs receipts the K1 and Senior Customs Officer signs off the K1 Form to authorize release of cargo. (Applicable for parallel transactions) If paperless transaction: i) Auto-release after payment of duty/tax ii) Printing of Customs Official Receipt (COR)

K1 Form COR

2 - 5 min.

No 12

Process Flow a) b) c) a) Port Operator received documents from Forwarding Agent Port Operator verify/received goods from vessel Port Operator collect Port Charges Forwarding Agent pays import duty on behalf of Importer via : i) Electronic Fund Transfer (which is only available during banking hours); ii) Duty Net (24 x 7, through CIMB); or iii) Manual (through cheque or bank draft)

Document IID K1 EFT Message: PAYORD, CREMUL, CREADV Manual: bank draft or cheque

Process Time 30 min per IID a) EFT: 2060 min. (different from Bank to Bank) b) Duty Net: Real time Basis c) Manual: 30 min.

Cost Port charges: as per tariff EFT charges: RM15 per B/L Actual charge: RM15 per transaction

13

b) c)

Forwarding Agent pays port charges to Port Operator attach K1/ Delivery Order & other documents Forwarding Agent obtain Gate Pass for cargo from Port/Terminal

IID IID K1 Gate Pass IID K1/Permit Gate Pass

30 min. per IID

Port Charges (based on the cargo) As per tariff

d) e)

Forwarding Agent collect goods Verification of cargo and documents by Customs and Security at gate Cargo transport to Importer

f) 14

Importer received cargo

Legend (Import Flow):

PIAs Permit Issuing Authorities FTA Free Trade Agreement MOF Ministry of Finance, Malaysia K1 Form Customs declaration form for import DNT Dagang Net Technologies (e-service provider) SMK-DNT Electronic data interchange system used by Customs for export declaration IID Integrated Import Document SMK Sistem Maklumat Kastam LMW Licensed Manufacturing Warehouses * EFT * Electronic Fund Transfer (applicable to only 8 banks) *Participating banks: 1-8 1. Maybank; 2. CIMB Bank; 3. PBB; 4. RHB Bank; 5. EON Bank; 6. Alliance Bank; 7. Affinbank; and 8. Ambank.