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​1.Machineries, equipment ​and spare parts.​​​ ​ ​
​1.1Machineries, equipment and spare parts to be used directly in the manufacturing process are qualified to enjoy import duty exemption and sales tax shall not be levied. The application for exemption shall be submitted to the State Director of Customs / Zone Operations Director.​​ ​
​1.2All Machineries, equipment and spare parts are not allowed to be sold, exchanged, exported or removed from the LMW’s premise without prior approval from the State Director of Customs / Zone Operations Director.​ ​
​1.3Machineries, equipment and spare parts that are not eligible for import duty and sales tax exemption are as follows:​​ ​
​1.3.1​forklift / crane / construction / building material / equipment,
​1.3.2office equipment / furniture, fire-fighting and pollution equipment and vehicles,
​1.3.3generators, petroleum and petroleum products, tires, explosives and chemicals,
​1.3.4​air conditioning and related equipment and
​1.3.5staff uniform.
​1.4An inventory list of machineries, equipment and spare parts should be prepared and updated for Customs inspection.​
​2.Raw Materials, Components, Accessories and Packaging Materials​​​​ ​ ​
​2.1Raw materials, components, accessories and packaging materials used directly in the manufacturing activities are eligible for import duty exemption whilst sales tax shall not be levied. The application shall be submitted to the State Director of Customs / Zone Operation Director.​​ ​
​2.2Raw materials, components, accessories and packaging materials can also be purchased from Licensed Warehouses, Free Zones and other Licensed Manufacturing Warehouses.​ ​
​3.Other Equipment for Manufacturing Activity.​​ ​ ​
​3.1Cleanroom equipment and manufacturing aids used directly in the manufacturing activities can be considered for import duty exemption, whilst sales tax shall not be levied. Applications shall be submitted to the State Director of Customs / Zone Operation Director.​ ​
​4.Import Clearance.​​ ​
​4.1​Importation of machinery, equipment, raw materials, components, accessories and packaging materials should be declared in the Sistem Maklumat Kastam (SMK). SMK will automatically validate based on the LMW license number and company registration number. Transaction type code – L – (LMW Import) must be used in order to claim the import duty exemption.
​4.2​Import duty exemption can be claimed under item 55, Customs Duties (Exemption) Order 2017. Sales tax shall not be levied based on the provision under Section 57 (a) (i) of the Sales Tax Act 2018. Transaction type to be used is X (exemption) for import duty exemption and OE (other) for sales tax exemption.
​4.3If the importation of good is subject to the Customs (Prohibition on Import) Order 2017, the stipulated conditions must be followed.