Bahagian Perkastaman - Fasilitasi Perdagangan

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Introduction
The Honorable Finance Minister, during the tabling of the 1997 Budget, presented on 25th October 1996, announced an incentive and criteria for the establishment of an IPC in Malaysia. Processing application and granting IPC status became the responsibility of the Ministry of International Trade and Industry(MITI).

International Procurement Centers (IPC) are companies established in the country owned by locals or foreigners who run businesses in Malaysia to procure and sell raw materials, components and finished goods to related and unrelated companies in Malaysia and foreign countries. The procuring and selling of goods include those goods from local and third world country.

To encourage the establishment of IPC as well as to make Malaysia a center of marketing and distribution, the Government has allowed the establishment of IPC at Licensed Manufacturing Warehouses (LMW) and Free Industrial Zones (FIZ) where goods which are not used for manufacturing will be brought in to LMW and FIZ for the purpose of re packaging, integration and consolidation before it is distributed to users. This and other manufacturing activities, allows companies in the LMW and FIZ to operate procurement activities in their premises after getting approval from MITI under the IPC Incentive Scheme.

Application Procedure

Application to achieve an IPC status has to be forwarded to:

Head Secretary,
Ministry of International Trading and Industry
Industry Policy Division
Level 10, Block 10, Government Complex,
Jalan Duta,
50622 Kuala Lumpur.
Tel: 603-2540033/2546022
Fax: 603-2562302

For IPC companies which need to operate in LMW, application has to be forwarded to the Customs Head Office (Free Zone/ Licensed Manufacturing Warehouse Branch) Kuala Lumpur along with these documents:-

• A copy of LMW license.
• IPC status approval letter by MITI.
• A complete list of raw material/ component of finished goods with import quantity/ annual local purchasing, tariff code and the total duty/ tax involve.
• Flow chart of IPC activity process operated in 3 copies.

IPC Incentives
Incentives provided under IPC status are as follow:

• The Trading officer’s qualification based on IPC needs;
• Is allowed to open an account in foreign currency at any licensed commercial bank to deposit export revenue without limit;
• Is allowed to participate in exchange contract foreign currency with any Licensed Commercial banks to sell future export revenue based on sales forecast;
• Is exempted from complying with the Ministry of Internal and Consumer Affairs rules regarding foreign equity proprietorship limit in retail trade company;
• Is allowed to import raw material components and finished goods without tax into the Free Industrial Zones and Licensed Manufacturing Warehouses for the purpose of re packaging, cargo consolidation and temporary storage before it is distributed to the end user.

Closing
For further information regarding International Procurement Center contact:

        Customs Division,
        Royal Malaysian Customs Headquarters,  
        Level 4 North, No. 3 persiaran Perdana,
        Ministry of Finance Complex,
        Precinct 2,
        Federal Government Administration Center,
        62592 Putrajaya.
        Tel.: (603) 8882 2665/2651/2667
        Fax: (603) 8889 5866

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