GUIDELINES AND PROCEDURES FOR A MANUFACTURER IN THE PRINCIPAL CUSTOMS

AREA (PCA) TO CLAIM EXEMPTION FOR IMPORT DUTY ON MACHINERY AND EQUIPMENT
IMPORTED OR PURCHASED FROM A LICENSED MANUFACTURING WAREHOUSE, BONDED
WAREHOUSE OR FREE ZONE UNDER ITEM 115 CUSTOMS DUTIES (EXEMPTION) ORDER 2013

INTRODUCTION

Import duty exemption on machinery and equipment is a facility provided under the provisions of
Section 14(2) Customs Act, 1967 to manufacturers in the PCA. Company is required to submit an
application to Malaysian Investment Development Authority (MIDA) where it would require a
processing period of four (4) weeks from the date of complete information received.

Effective 2nd May 2014, manufacturers in the PCA can benefit from a self-declaration mechanism
for exemption through the Customs Duties (Exemption) Order 2013. Under the new mechanism,
company is required to submit the list of machinery and equipment to Royal Malaysian Customs
Department (Customs) prior to the importation or purchase in order to obtain permission to
claim the exemption. The submission must be accompanied by a confirmation letter as a
manufacturer in the PCA issued (one time) by MIDA.

ELIGIBILITY

1) Customs Duties (Exemption) Order 2013 provide import duty exemption on machinery
and equipment imported or purchased from a Licensed Manufacturing Warehouse, Bonded
Warehouse or Free Zone under item 115 Customs Duties (Exemption) Order 2013.

2) To qualify for the exemption, the machinery and equipment must be new, unused and
directly used in the manufacturing process of the finished product(s) at the approved
manufacturer’s premise(s).

SUBMISSION OF DOCUMENTS

Application for a confirmation letter and permission to claim the exemption must be submitted prior
to the importation or purchase of the machinery and equipment. The new self-declaration
mechanism would reduce the costs of doing business without the necessity of obtaining bank
guarantee facilities for the clearance of goods. Companies are advised to take into consideration the
duration needed for the whole process to claim the exemption.

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i) SUBMISSION TO MIDA FOR CONFIRMATION LETTER AS A MANUFACTURER IN PCA

 Online application accompanied by scanned copies of the following documents should be

submitted to MIDA:

Documents to be Submitted New Ext.

1 Manufacturing License issued under the Industrial Coordination Act 1975, or

Confirmation Letter for a Company Exempted from Manufacturing  
License under the Industrial Coordination Act, 1975 from MIDA;

2 Business Premise License from the Local Authority. This is applicable to a

company exempted from Manufacturing License under the Industrial 
Coordination Act, 1975;

3 Registration certificate or letter of acknowledgement if the application for

registration certificate is pending approval from Department of Occupational 
Safety and Health (DOSH);

4 Latest printout of SSM Company Profile (e-info) from Companies

Commission of Malaysia (SSM);  

5 Manufacturing process flow chart; 

6 Layout plan for machinery and equipment in approved manufacturer’s premise
and to indicate where the machinery and equipment will be located; and 

7 Copy of previous Surat Pengesahan MIDA 

 Company with multiple locations must indicate a single State Customs Control Station in the
application form for the purpose of obtaining the permission to claim the exemption, record
keeping and audit.

 Application form for Surat Pengesahan MIDA (SPM1/2018) is available online via
https://jpc.online.mida.gov.my.

ii) SUBMISSION TO CUSTOMS FOR PERMISSION TO CLAIM THE EXEMPTION

 Company should provide complete information on the machinery and equipment to be

imported or purchased in Appendix I (SPM1) which can be downloaded via
http://www.customs.gov.my.

 Appendix I (SPM1) should be accompanied by the following documents and submitted to the
State Customs Control Station (Industrial Section / GST Division) as indicated in the
SPM1/2018 form to obtain the permission to import or purchase the machinery and
equipment:

a) Company’s covering letter

b) Confirmation letter issued (one time) by MIDA

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PROCEDURE TO CLAIM EXEMPTION UNDER CUSTOMS DUTIES (EXEMPTION) ORDER 2013

APPLICANT
 Submit SPM1/2018 form online via https://jpc.online.mida.gov.my to obtain confirmation letter from MIDA

MIDA
 Accept complete SPM1/2018 form and supporting documents
 Issuance of the confirmation letter via online

APPLICANT
]

 View and download the confirmation letter via https://jpc.online.mida.gov.my/midawebpki/checkStatus.jsp

 Provide complete information on the machinery and equipment to be imported or purchased in Appendix I
(SPM1) which can be downloaded via http://www.customs.gov.my.
 Submit the following documents to the State Customs Control Station (Industrial Section / GST Division) to
obtain the permission to import or purchase the machinery and equipment:
a) Company’s covering letter
b) Confirmation letter
c) Appendix I (SPM1)

STATE CUSTOMS CONTROL STATION

(INDUSTRIAL SECTION / GST DIVISION)
 Accept completed Appendix I (SPM1) and supporting documents
 Verify the confirmation letter issued by MIDA and other company’s documents via
https://jpc.online.mida.gov.my/SMPCMIDA
 Issuance of the permission letter for the importation or purchase of the machinery and equipment from a
Licensed Manufacturing Warehouse, Bonded Warehouse or Free Zone

APPLICANT
 Submit the permission letter to the Customs Import/Export and Border Control Branch for the clearance
of goods
 Notify MIDA and the related State Customs Control Station (Industrial Section / GST Division) when a
company ceased operation or winded up

For enquiries and clarification, please refer to;

Tariff Section
Malaysian Investment Development Authority (MIDA)
Tel : +603 22676791
Fax : +603 22745156
E-mail : tarif@mida.gov.my
Website : www.mida.gov.my