Licenses

Licensed Manufacturing Warehouse (LMW)

We have registered under the Section 65A in addition to Section 65 of The Customs Act 1967 that enables warehousing and manufacturing process and other operation to be carried out in licensed warehouses.

The warehousing and manufacturing operation inside the licensed warehouses is subject to minimal customs procedures. This is primarily intended to cater for the export oriented industries. With the licenses, raw materials and components used directly in the manufacturing process are exempted from customs duties.

The licensed manufacturing warehouse can be set up speedily and anywhere in the principal customs area without any need to be near to the ports of entry. Our company had applied to establish a warehouse for storage of dutiable goods under Section 65 and to manufacture such goods for production of other dutiable goods under the provision of Section 5A that can be made simultaneously. It had been submitted to the State Director of Customs where the proposed warehouse is to be located through the nearest Customs Office.

All information require in the application form also had been fully furnished together with certificates, plans and other supporting documents as required. License under Section 65 and 65A, is issued at the discretion of the Director General of Customs on payment of fees currently fixed at RM2,402 (two thousand four hundred ringgit for license under Section 65 and a nominal two ringgit for license under Section 65A). The license so granted will be subjected to such conditions as the Director General of Customs may specify. It is for a period of two years subjected to renewal. Application for renewal of license will be made at least one month before expiry date of the existing license. If the product manufactured falls under categories of goods liable to excise duty, an excise license is required and its fee is as prescribed under the Third Schedule, Excise Regulations, 1977.

As the holder of a public warehouse license, our company are required to comply with conditions stipulated in the license and shall be responsible for the payment of customs duties or taxes for all goods stored in the warehouse including those unaccounted for. Security of the warehouse and goods deposited in the warehouse is the responsibility of our company as the license holder.