Import Duty Exemption on Machinery &

Equipment and Raw Materials /

Components

DATE : 26 SEPTEMBER 2016 (MONDAY)

VENUE : PERDANA HALL, LEVEL 10, MIDA
Types of Application for Import Duty Exemption

Self-Declaration Mechanism for Import Duty Exemption on

Machinery & Equipment (SPM1/2015)

Import Duty Exemption for Raw Materials & Components (PC2)

Common Mistakes by Applicant

Spare Parts & Consumables

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 Scope Of Exemption
Import duty exemption on machinery
and equipment excluding spare parts
and consumables
Exemption to be claimed through the
Customs Duties (Exemption) Order
2013
Import duty exemption on raw
materials and components used
directly in the manufacture of finished Area
product(s)
Eligible Applicant Form To Be Submitted
Manufacturer in Application to obtain the
Principal Customs confirmation letter as a
Area manufacturer must be
submitted online using the
form SPM 1/2015 -
Manufacturer in PCA
Manufacturer in Application must be
Principal Customs submitted to MIDA using the
form PC2/PC2A (New and
Extension) and PC2-1
(Additional Quantity)

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SPM1/2015

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 Improve business efficiency
WHY SELF-
DECLARATION  Confirmation letter issued once by MIDA valid until
31/12/2017
MECHANISM??
 Permission to claim the exemption can be obtained
within a period of two (2) weeks from Customs

No necessity to use the bank guarantee facilities for the

clearance of goods

No necessity to redeem the bank guarantee

No additional costs incurred

Self-declaration and self-regulated

have enjoyed the facilitation up to 15 September 2016

Scope of Exemption & Criteria to Qualify for
the Exemption

Customs
Duties
Eligible Sectors Scope of Exemption Qualifying Criteria
(Exemption)
Order 2013
Import duty exemption on The machinery and
Manufacturers machinery and equipment equipment, must be new,
in Principal excluding spare parts and unused and directly used
Customs Area consumables imported or in the manufacturing
Under item 115
(PCA) purchased from a Licensed process of the finished
Manufacturing Warehouse product(s) at the
(LMW), Bonded Warehouse approved manufacturers’
or Free Zone (FZ) premise(s)
Procedure To Claim Exemption Under The Customs
Duties (Exemption) Order 2013
STEP 1 : APPLICANT
 Submit the following form online via https://jpc.online.mida.gov.my to obtain the confirmation letter from MIDA:
 SPM 1/2015 - Manufacturer in PCA

STEP 2 : MIDA
 Accept complete application form and supporting documents
 Issuance of the confirmation letter via online

STEP 3 : APPLICANT
 View and download the confirmation letter via https://jpc.online.mida.gov.my/midawebpki/checkStatus.jsp
 Provide complete information on the machinery and equipment to be imported in Appendix I, downloaded via
http://www.customs.gov.my.
 Submit the following documents to the State Customs Control Station (Industrial Section) to obtain the permission to import
the machinery and equipment:
 Company’s covering letter
 Confirmation letter issued by MIDA
 Appendix I (hard copy and soft copy)

STEP 4 : STATE CUSTOMS CONTROL STATION (INDUSTRIAL SECTION)

 Accept complete Appendix I and supporting documents
 Verify the confirmation letter issued by MIDA and other company’s document via https://jpc.online.mida.gov.my/SMPCMIDA
 Issuance of the permission letter for the importation of the machinery and equipment

STEP 5 : APPLICANT
 Submit the permission letter to the Customs Import/Export and Border Control Branch for the clearance of goods
 Notify MIDA and the related State Customs Control Station (Industrial Section) when a company ceases operation or winds up
Form, Letters & Appendices

SPM1 Form

Confirmation Letter
Appendix A Appendix I

Customs Permission Letter

Appendix B
Documents To Be Submitted For SPM1/2015

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Documents To Be Submitted For SPM1/2015

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Import Duty Exemption for Raw
Materials & Components (PC2)

Year 2014 2015 2016 Total

(Jan-
Sept)
Applications 224 229 149 602
Received from
Plastics and
Mould & Die
Industries
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 Scope of Exemption Qualifying Criteria

 Directly used in the manufacturing activity(s) at

the approved premise(s) and subject to local
availability
Import duty exemption on
 Total duty exemption applied & forgone : >
raw materials /
RM5,000 (subject to changes)
components
 Application must be submitted before the
materials are imported
 Forms To be Submitted

Type of New / Additional Appeal Post Approval

Application Extension Quantity (Amendments on
Approval)

Current Form PC2 PC2-1 Company’s Company’s letter

letter with with justification &
justification & supporting
supporting documents
documents

Mode of o Online o Physical (Courier / By hand)

Submission o Physical (Courier/By
hand)
 Guideline & Procedures for Application
1 Import duty exemption on raw materials and components used directly in the production of
finished products and imported directly can be considered for manufacturing companies.
2 As a prerequisite, manufacturing companies are required to register with the Department of
Occupational Safety and Health (DOSH)
3 Only applications for total duty exemption of RM5,000.00 and above (per submission) will be
considered for exemption.
4 Applications must be submitted before the raw materials or components are imported or
purchased.
5 Documents to be submitted:
a) Application form
b) Manufacturing Licence (ML) or Letter of exemption from ML (ICA10)
c) Tax incentive approval under Promotion of Investment Act 1986 (PIA) or Income Tax Act
1967 (if applicable)
d) Memorandum and Articles of Association or Business Registration Certificate (new
application)
e) Other licences/permits/approvals from relevant approving authorities
f) A copy of previous approval (extension application)
6 Applications should be submitted using Form PC2/PC2-1/PC2A in two (2) copies.
7 Online applications should be accompanied by scanned copies of documents as in para 5.
Signed copies of the application forms should also be submitted to MIDA.
Form, Letters & Appendices

PC2 Form / PC2A / PC2-1

Approval Letter
Appendix I Appendix A
 Process Workflow

Step 1 Applicant • Submission of application through online/physical form

Step 2 MIDA • Accept complete application and issued acknowledgement letter

Step 3 MIDA • Evaluation by the processing officer

JPC2
Step 4 Committee • Decision made in the JPC2 meeting

Step 5 MIDA • Notify company on the decision through email

 No Common Mistakes for SPM1 Application
1 Incomplete documents:
- Manufacturing Licence (ML)
- Registration Certificate or Letter of Acknowledgement from DOSH
- Latest print out of SSM Company Profile
2 Project Cost / Equity Structure
- Should state the figure instead of percentage
3 Finished products and factory address different from the details stated in the
Manufacturing Licence
4 Company did not apply Manufacturing Licence or ICA10
5 ROC is not the same as in the SSM Company Profile
 No Common Mistakes for PC2 Application
1 Incomplete attachment for new application
- Manufacturing Licence / ICA10
2 Do not provide a copy of previous approval (for extension application)
3 Incorrect unit of measurement
4 Do not provide information on the previous importation and consumption
(for extension application)
5 Maximum capacity is based on the current production
6 Incorrect application form used OR Old application form
7 Declaration page is not complete
8 Illogical input / output ratio
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Malaysian Investment Development
Authority (MIDA)
Tel : 603-22673539
Fax : 603-22745156
E-mail : tarif@mida.gov.my
Website : www.mida.gov.my