| 1. | INTRODUCTION |
| | 1.1 | LMW is an export-oriented company licensed under
Sections 65A of the Customs Act 1967. LMW company enjoy the facilities of
import or purchase of raw materials, components and packaging materials without
paying import duty and sales tax. |
| | 1.2 | In principle, the import duty and sales tax
exemption on raw materials, components and packaging materials is to be used
directly in the manufacturing process for producing company’s finished goods. |
| | 1.3 | In certain circumstances, there are applications
to re-export back due to reasonable reason that need to be considered. |
| 2. | PURPOSE |
| | This procedure is to guide on the application
for exporting raw materials and packaging materials so that the implementation
at all levels of the state can be standardized. |
| 3. | SCOPE |
| | 3.1 | Export activities refers to the movement of
goods from LMW to; |
| | | a. | Overseas, |
| | | b. | Free Zone, or |
| | | c. | Another LMW. |
| | 3.2 | Raw materials and packaging materials that can
be considered for export are; |
| | | a. | As a replacement part, |
| | | b. | As a replacement under warranty period (warranty
part), |
| | | c. | Defect items for disposal or for sale as a second grade, |
| | | d. | Not according to specification, |
| | | e. | No longer used (stop manufacturing, expired / obsolete / end of life), |
| | | f. | For testing and evaluation, |
| | | g. | For repair, |
| | | h. | For production sample, and |
| | | i. | For other reasonable reasons except on any case involving Enforcement Division. |
| | 3.3 | Export activities for trading purposes and trade
barrier avoidance are not allowed. |
| 4. | IMPLEMENTATION |
| | 4.1 | The application shall be submitted to the customs controlling station with following documents; |
| | | a. | Covering letter. |
| | | b. | List of goods to be exported as Appendix 1. |
| | | c. | Related supporting documents. |
| | 4.2 | The quantity that can be considered for export
is based on the estimated quantity applied as stated in supporting documents.
Examples of supporting documents are; |
| | | a. | Agreement with respective company for repairing
activities (sales and services contract), |
| | | b. | Quality report / defect report, |
| | | c. | Product Specification report, |
| | 4.3 | The approval period shall not exceed six (6)
months. After the expiration date, new applications shall be submitted even though
the approved quantity is still not fully exported. |
| 5. | LMW RESPONSIBILITY |
| | 5.1 | The information on exported raw materials and
packaging materials shall be recorded in column 10 of the Appendix M1 (Raw
Material / Component / Accessory / Packaging Material Monthly Statement) for
the purpose of deduction in quantity which has been approved. |
| | 5.2 | To provide permit for raw materials and
packaging materials which subject to the Customs (Prohibition of Exports) Order
2017, |
| | 5.3 | Raw materials and packaging materials which subject to customs duty shall be paid during export clearance. |
| | 5.4 | The applicants are required to keep records on the detail movement of goods and supporting documents, approval and export declaration for customs review. |
| | 5.5 | LMW company is responsible for unaccounted raw
materials and packaging materials that has been approved for export. Import duty
and sales tax involved must be paid (if applicable). |
| | 5.6 | To comply with the stipulated conditions and any
other requirements issued from time to time. |
| 6. | EFFECTIVE DATE |
| | This procedure is effective from the date of
this letter issued. |
