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Introduction

MNTR carries the purpose of harmonizing the regional disciplines on transparency to trade. Practicing regulatory transparency that act as fundamental catalyst in commerce that will enable the development of economic, cross-border investment and trade, and integration between country all over the globe.

The MNTR contains the trade and customs laws and procedures of all AMSs and trade-related information which are: (i) tariff nomenclature; (ii) MFN tariffs, preferential tariffs offered under this Agreement and other Agreements of ASEAN with its Dialogue Partners; (iii) rules of origin; (iv) non-tariff measures; (v) national trade and customs laws and rules; (vi) procedures and documentary requirements; (vii) administrative rulings; (viii) best practices in trade facilitation applied by each Member State; and (ix) list of authorized traders of AMSs.

The categorized information that has being form as parts of the National Trade Repository (NTR) are define in Article 13 of the ASEAN Trade in Goods Agreement.

9 Elements 

1.ELEMEN 1 – TARIFF NOMENCLATURE

Tariff nomenclature is an internationally standardized system of names and numbers to classify traded products. It came into effect in 1988 and has since been developed and maintained by the World Customs Organization (WCO) (formerly the Customs Co-operation Council), an independent intergovernmental organization based in Brussels, Belgium, with over 200 member countries.
​1.1​TARIFFS NOMENCLATURE

Tariffs Nomenclature of Each AMS (up to 10-digit level)
2.ELEMEN 2 – PREFERENTIAL TARIFF


The creation of the ASEAN Free Trade Area (AFTA) was agreed at the 1992 ASEAN Summit in Singapore. The main objectives of the AFTA are to:​​
  • create a single market and an international production base;
  • attract foreign direct investments; and
  • expand intra-ASEAN trade and investments.
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The liberalisation of trade in the region through elimination of both intra-regional tariffs and non-tariff barriers had contributed towards making ASEAN's manufacturing sectors more efficient and competitive in the global market. As a result, consumers are able to source goods from the more efficient producers in ASEAN, thus creating a robust intra-ASEAN trade.

Effective 1 January 2010, Malaysia with five other ASEAN Member States (which are Brunei Darussalam, Indonesia, the Philippines, Singapore and Thailand) is a complete free trade area. These countries have eliminated import duties on 99 per cent of products in the Inclusion List and AFTA is almost completely realised among the ASEAN-6. On average, today ASEAN 6 has 99.20% of tariff lines in the Inclusion List at 0%. Only 0.35% or less than 1% of the Tariff Lines in the Inclusion list has import duties.

​2.1MOST-FAVOURED NATIONS (MFN) TARIFF BY WTO

  • MFN tariff is a normal non-discriminatory tariff charged on imports (excludes preferential tariffs under free trade agreements and other schemes or tariffs charged inside quotas).  
  • For Malaysia, MFN tariffs are applied to all WTO Member Countries based on the listing contained in the Customs Duties Order(s). 
  • Under the WTO Agreements, WTO Members should not discriminate between their trading partners. According to the MFN principle, any advantage (such as a lower tariff on one of its products), favour, privilege or immunity granted by a Member to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like products of all Members. Hence, the principle requires each Member to extend to all other WTO Members treatment no less favourable than the treatment it accords to imports from any other country. 
  • The MFN principle embodied in the WTO Agreements in Article I of the ​GATT 1994, Article II of the General Agreement on Trade in Services (GATS) and Article 4 of the TRIPS Agreement. 
  • Tariff Nomenclature of Malaysia
  • Malaysia's MFN Tariffs (WTO)
  • Customs Order
​​2.2 ATIGA TARIFF

​2.3PREFERENTIAL TARIFF OF AGREEMENTS OF ASEAN WITH ITS DIALOGUE PARTNERS

  • ATIGA (ASEAN Trade in Goods Agreement)
  • ACFTA (ASEAN-China Free Trade Agreement)
  • ​AKFTA (ASEAN-Korea Free Trade Agreement)
  • AJCEP (ASEAN-Japan Comprehensive Economic Partnership)
  • AANZFTA (ASEAN-Australia-New Zealand Free Trade Agreement)
  • AIFTA (ASEAN-India Free Trade Agreement)
  • ASEAN-Hong Kong Free Trade Agreement (AHKFTA)
  • Regional Comprehensive Economic Partnership (RCEP)
  • Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
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​3.​ ELEMEN 3 – RULES OF ORIGIN
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ROO is the guiding principle to determine where one product is originated from. In order to enjoy originating status from FTA member country one's must be the last substantial transformation to where the product took place. Rules of origin also is use to determine the country of o​rigin of a product for purposes of international t​rade.​​

​3.1​NON-PREFERENTIAL RULES OF ORIGIN

  • Non-preferential rules may differ from country to country and the same product may have different origins depending on which country's scheme is applied. Non-preferential rules of origin are used to determine the country of origin for certain purposes.
  • Non-Preferential Rules of Origin can be used as an important trade and commercial policy measure. Three general rules are applied as follows:
    • Change of tariff classification (on any level, though 4-digit level is the most common)
    • Value added-rule (ad valorem)
    • Special processing rule, the minimum transformation is described.
  • Non-PCOissued by MITI​​
​3.2​PREFERENTIAL RULES OF ORIGIN

  • ATIGA (ASEAN Trade in Goods Agreement)
  • ACFTA (ASEAN-China Free Trade Agreement)
  • AKFTA (ASEAN-Korea Free Trade Agreement)
  • AJCEP (ASEAN-Japan Comprehensive Economic Partnership)
  • AANZFTA (ASEAN-Australia-New Zealand Free Trade Agreement)
  • AIFTA (ASEAN-India Free Trade Agreement)
    • Customs Duties (Goods under Agreement on Comprehensive Economic Cooperation between ASEAN and India) Order 2009 (Part I)
    • Customs Duties (Goods under Agreement on Comprehensive Economic Cooperation between ASEAN and India) Order 2009 (Part II)
    • Customs Duties (Goods under Agreement on Comprehensive Economic Cooperation between ASEAN and India) Order 2009 (Part III)
  • ASEAN-Hong Kong Free Trade Agreement (AHKFTA)
  • Regional Comprehensive Economic Partnership (RCEP)
  • Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
​4.​ELEMEN 4 – NON-TARIFF MEASURES

​The concept of NTMs is very broad, and includes a number of different measures, ranging from quantitative restrictions of all kinds, technical regulations, standards, SPS measures, customs rules, etc. All of them share the same characteristic of affecting trade.​

​5.​ELEMEN 5: NATIONAL TRADE AND CUSTOMS LAWS AND RULES

Laws and regulations concerning

a.Importation, Exportation, Transit, Transshipment, and Storage of Goods as They Relate to Customs Duties, Charges and Other Taxes

b.Rates of Duty Not Otherwise Included Under Category (Item II of Article 13(2) Of ATIGA), Taxes or Other Charges (e.g.; Customs Surcharges, Additional Taxes and Charges, Customs Fees and Charges On Imports).

c.Requirements, Restriction or Prohibitions on Imports or Export, Transit Goods or Transshipment.

d.Requirements, Restriction or Prohibitions on the Transfer of Payments for Imports or Exports, Transit Goods or Transshipment.

e.Sale, Distribution, Transportation, Insurance, Warehousing, Inspection, Exhibition, Processing, Missing or Other Use of Imports or Exports, Goods in Transit and Transshipment.

​f.Domestic Electronic Commerce-Related Laws and Regulations​

​5.1​Importation, Exportation, Transit, Transshipment, and Storage of Goods as They Relate to Customs Duties, Charges and Other Taxes

This section contains references to laws and regulations concerning the importation, exportation, transit, transshipment, and storage of goods as they relate to customs duties, charges and other taxes.
​5.2Rates of Duty Not Otherwise Included Under Category (Item II of Article 13(2) Of ATIGA), Taxes or Other Charges (e.g.; Customs Surcharges, Additional Taxes and Charges, Customs Fees and Charges On Imports).

This section contains references to laws and regulations relating to the rates of duty, taxes or other charges (such as customs surcharges, additional taxes and charges, customs fees and charges on imports).
​5.3Requirements, Restriction or Prohibitions on Imports or Export, Transit Goods or Transshipment

This section contains references to laws and regulations relating to requirements, restrictions or prohibitions (such as licensing, quotas, prohibitions and quantity control measures) on imports or exports, transit goods or transshipment.
​5.4Requirement, Restrictions or Prohibitions on the Transfer of Payments for Imports or Export, Transit Goods or Transhipment

This section contains references to laws and regulations relating to requirements, restrictions or prohibitions on the transfer of payments for imports or exports, transit goods or transshipment.
​5.5Sale, Distribution, Transportation, Insurance, Warehousing Inspection, Exhibition, ​Processing, Mixing or Other Use of Imports or Exports, Good in Transit and Transhipment

This section contains references to laws and regulations affecting the sale, distribution, transportation, insurance, warehousing inspection, exhibition, processing, mixing or other use of imports or exports, goods in transit and transshipment.
​6.​ELEMEN 6: PROCEDURES AND DOCUMENTARY REQUIREMENTS

This ATR topic intends to provide information on trade-related procedural and documentary requirements that are imposed in each ASEAN Member State in connection with the importation and exportation of goods.
​​
​6.1​Consular formalities

Consular formalities are documents or procedures required by some countries before their customs authorities will permit goods produced in other countries to enter their markets, such as special invoices approved by a consul or other official of the importing country.
​6.2​Document Requirement relation to the importation, exportation, transit and transshipment of goods

  • Customs Documentation
  • Declaration of Import
  • Declaration of Export
  • Transit, Transshipment & Movement​
​6.3​ Licensing

Licensing consists in a requirement by a country of a formal application for a special permit (i.e., the license) as a prior condition for importing or exporting certain goods. Licensing requirements result in administrative procedures regulating the operation of licensing regimes.
  • Licensed Warehouse
  • Licensed Manufacturing Warehouse​
​6.4​Pre-shipment Inspections and other formalities
​6.5​Analysis and Inspection Procedure

These measures concern analysis and inspection requirements applied in ASEAN Member States on imported and exported goods.

​6.6​Quarantine, Sanitation and Fumigation

This sub-category contains information on quarantine, sanitation and fumigation requirements applied in each AMS on imported goods.

​6.7​Special Customs Regimes
​6.8​Special Customs Formalities

This sub-category contains information on special customs formalities applied in each ASEAN Member State. Special customs formalities include formalities that are not clearly related to the administration of any measure applied by the given importing country (such as the obligation to submit more detailed product information than normally required on the basis of a customs declaration, the requirement to use specific points of entry, etc.).​
​7.​ELEMEN 7: ADMINISTRATIVE RULINGS

Administrative rulings help to outline the orders and decisions created and related to administrative agencies. It is officially disseminate agency's regulations that have the force and effect of law. Generally these rules elaborate the requirements of a law or policy.​​​​

​​7.1​Tarif Classification
​
Each bullet containing folder explaining on the products based on their types and criteria. 
 ​Rulings can be referred​​​
​7.2​Origin Determination

Administrative rulings concerning origin determination include:
  • Items or products are manufactured in Malaysia and using 100% of local materials.
  • Items or product had gone through transformational process manufactured in Malaysia which has a change in tariff classification code at six (6) digits level.
  • Contains at least 25% of local materials.​​
​7.3​Customs Valuation Applicable Criteria and Its Implementation​

Each bullet containing folder explaining on the products based on their types and criteria. 
 ​Rulings can be referred

​7.4​Applicability of the Requirements for Relief or Exemption from Customs Duties.
​7.5​Application of the Member's Requirement for Quotas, Including Tariff Quotas
​7.6​Establishment of the Programme of Authorised Economic Operators

Official Portal
Authorized Economic Operator

​8.ELEMEN 8 - ​​​​BEST PRACTICES IN TRADE FACILITATION

ASEAN Member States are required to notify best practices in trade facilitation. These may include best practices arising from practical experience of implementing trade facilitation reforms, in areas including:

  • ​​​​​​Publication and availability of information (e.g.; enquiry points)
  • ​​Advan​ce rulings
  • Appeal or review
  • Disciplines on fees and charges imposed on or in connection with importation and exportation
  • Release and clearance of goods (including, inter alia, pre-arrival processing, risk management, post-clearance audit, authorized operators, expedited shipments)
  • Border agency cooperation
  • Formalities connected with importation and exportation and transit (e.g. ; single window, temporary admission of goods)
  • Freedom of transit
  • Customs cooperation
​9.​ELEMEN 9 – ​​​​LIST OF AUTHORISED TRADERS OF AMS

The Authorised Economic Operator or AEO is a concept introduced by the SAFE Framework of Standard referring to operators involved in the movement of goods along the international trade supply chain who have achieved the required security standards and are accredited by the member country. The AEO Scheme developed by Royal Malaysian Customs Department (RMCD) is based on a similar concept. ​
 
The AEO concept encourages electronic transactions for better security management in the supply chain. For smooth and seamless flow of trade, economic operators are encouraged to implement high security features based on international standards in their day-to-day management in all aspects of their business activity, amongst others includes manufacturing activities, movement of raw materials and finished goods, storage and warehousing and also ensuring secure conveyances and handling of goods. Economic Operators with high compliance level and high security management are encouraged to apply for the AEO scheme from RMCD.​

Official Portal
Authorized Economic Operator Malaysia