At a media briefing yesterday, MIDA Chief Executive Officer Dato’ Azman Mahmud said the new mechanism would benefit some 1,200 companies both foreign and local in the Principal Customs Area (PCA).
The self- declaration mechanism besides helping reduce further the cost of doing business in Malaysia would at the same time reduce the number of physical applications to the minimum by next year from some 5,000 applications processed by MIDA annually.
Since the introduction of the new mechanism on 2 May, some 280 companies in the PCA have benefitted from the exemption. PCA companies have welcomed the new initiative which has reduced the time and costs to import and clear the goods. With the self-declaration mechanism, a company is required to submit a confirmation letter issued by MIDA together with the list of machinery, equipment, spare parts, consumables, prime movers and container trailers to be imported or purchased from licensed manufacturing warehouse (LMW), bonded warehouse or free zone to the Customs for permission to claim the exemption, which will be granted within two weeks from date of complete submission.
MIDA Tariff Division Director, Jasbir Kaur said companies would benefit from savings in bank guarantee cost as well as storage cost of the machinery and equipment.
In its continuing efforts to enhance the business environment in Malaysia, particularly on the ease doing business, MIDA is likely to consider raw material exemption next.
Source: MIDA and NST Business Times and StarBiz 18 July 2014