NOTIFICATION : Issuance of Export Licence through MTIB Core System (MCS)
Please take note that starting from 20 August 2009, the issuance of MTIB export licence through the MTIB Core System (MCS) does not require the signature of MTIB Licensing Officer. Exporters can print the MTIB approved export licence through the MCS from their premises. Exporters can apply for physical inspection from the nearest MTIB Branch Office or Checking Station before exports. MTIB will endorsed the export licence for the exporter submission to the Customs for export purposes.
Announcement On Gazettment And Enforcement Of:-
(i) CUSTOMS DUTY ORDER 2012
(ii) CUSTOMS ORDER (IMPORT AND EXPORT PROHIBITION) 2012
1) The Customs Duty Order 2012 has been gazetted on 30 August 2012 and has been enforced from 31 October 2012. With the gazettment and the enforcement of the Customs Duty Order 2012, the list of timber and timber products that used the HS code 2007 has been correlated into the HS code 2012.
2) Meanwhile the Customs Order (Import and Export Prohibition) 2012 has also been gazetted on 31 December 2012 and becomes effective from 1 Mac 2013.
Note : To obtain a copy of these documents, please refer to or download from the Customs official website at www.customs.gov.my
3).With the gazzettment of the Customs Order (Import and Export Prohibition) 2012, twenty six (26) timber and timber products have been included into the Second Schedule of the Customs Order which require an export licence in order for these products to be exported. The Third Schedule (First Part) of the Customs Order has listed three (3) timber and timber products for which an import licence from MTIB is needed prior to importation of these listed products.
4).Please note that with the gazettment mentioned in (2) above, thirteen (13) additional timber and timber products have been included into the existing list of products for which an export licence is required whilst one (1) product has been added into the existing list of products for which an import licence is required. The list of timber and timber products which require export and import licences from MTIB is as attached.
5).With this development, MTIB wishes to notify that companies operating in Peninsular Malaysia and the Federal Territory of Labuan are required to obtain export and import licences from MTIB for the said products. Further, it should be noted that companies that perform the activities of exporting and importing shall be registered with MTIB in accordance with the provision of Section 13 (1), Act 105 Malaysian Timber Industry Board which states:
“No person shall carry on any activity as exporter, importer, supplier, grader, processor, trader, operator or jetty operator unless he is registered in accordance with this Act”.
6).In accordance with the requirement of this Act, companies that are engaged with any of the activities mentioned above are requested to register with MTIB as soon as possible to avoid any problems and to ensure that these activities are carried out in accordance with the regulations. Companies can refer to the MTIB Registration Guidelines at the MTIB official website at www.mtib.gov.my or contact the Registration Unit, MTIB Headquarters at the phone line of 03-9282 2235 for further details, regarding the requirements for registration.
Malaysian Timber Industry Board
22 February 2013
Given the significance of strengthening East Asian economic integration, the Leaders of ASEAN and the 6 countries endorsed the Framework for RCEP and its Work Plan at the 19th ASEAN Summit in Bali in November 2011.
The RCEP negotiation was later launched during the 21st ASEAN Summit in Phnom Penh, Cambodia in November 2012. The Leaders agreed that RCEP shall involve broader and deeper engagement with significant improvements over existing ASEAN FTAs/CEP with these countries.
Based on current data, RCEP will create an alliance of a region populated by more than three billion people, with a combined GDP of more than US$17 trillion and over 40% of the world trade.
The RCEP is ASEAN led. The RCEP aims to achieve a modern, comprehensive, high-quality and mutually beneficial economic partnership agreement among RCEP members The RCEP aims to bring together the 16 countries into a huge cohesive economic partnership with emphasis to promoting inclusive and equitable growth. It aims to streamline and integrate the ASEAN+1 FTAs into a single and more coherent trade and investment architecture in the region.
The RCEP will cover:-
(i) Trade in Goods;
(ii) Trade in Services;
(iv) Economic and Technical Cooperation;
(v) Intellectual Property;
(vii) Dispute Settlement; and
(viii) Other issues agreed by RCEP parties.
The negotiations for RCEP commenced in 2012. To date, 6 Rounds of RCEP negotiations have been held Brunei Darussalam (9-13 May 2013); Australia (23-27 September 2013); Kuala Lumpur, Malaysia (20-24 January 2014); Nanning, China (31 March - 4 April 2014); Singapore (21-27 June 2014); the 6th Round in New Delhi, India (1-5 December 2014) and the 7th Round in Bangkok, Thailand (9-13 February 2015).
The RCEP participating countries envisage that negotiations will be completed by the end of 2015 similar to ASEAN Economic Community end date for implementation. The RCEP conclusion is one of Malaysia's priorities during its Chairmanship of ASEAN in 2015.
A unique feature of Agreement is that other countries may join after the conclusion and implementation of RCEP by the original 16 participating countries.
Malaysia is the Chairman of WG on Trade in Services under RCEP. The complete list of countries chairing the negotiating group is as follows:
|WG/SWG||Origin Country of Chairman|
|WG Dispute Settlement||Brunei Darussalam|
|SWG CPFT||The Philippines|
While good progress is seen in the negotiations, there is still a need to enhance the momentum for negotiations especially in the core areas of Goods, Services and Investment.
BENEFITS TO MALAYSIA
The RCEP will allow a more comprehensive economic integration within the region. This is important to strengthen Malaysia's foothold as a trading nation. In 2013, Malaysia trade to the RCEP parties covers 63.24% (USD434 billion) of the nation's global trade.
The RCEP also aims to simplify and harmonized the current ASEAN+1 FTAs. Currently ASEAN+1 FTAs implement different rules and procedures. This has resulted in difficulties to utilize the FTAs especially for SMEs. Through better governance and risk management, the RCEP is envisaged to create a more conducive business environment.
Integration of business in the region through the global supply chain will increase the regions attractiveness as an investment destination. The involvement of India and China in RCEP will allow better access to these markets. These developing economies offers huge potential for Malaysian businesses can tap into opportunities provided through the FTA.
MTIB, in collaboration with the General Insurance Association of Malaysia and the Malaysian Takaful Association has issued a guideline on fire insurance for the timber and furniture industry. Effective January 1, the guideline stipulates the minimum requirements and best practices. It is aimed at elevating the level of Malaysian timber and furniture industry. The requirement covers:-
(a) Risk management
(b) Operational activities
(c) Maintenance and housekeeping
(d) Fire protection & detection system
Please Click Here to view the Guideline
Free trade agreements (FTAs) are intended to stimulate trade between countries by reducing or eliminating restrictions such as tariffs, quotas, special fees and taxes. Their purpose is to facilitate transactions and promote more business between the countries or areas based on comparative economic advantages that should allow both sides to benefit. Free trade agreements can help more businesses enter and compete in the global marketplace by leveling the international playing field.
FTAs can help strengthen business climates and encourage economic growth by allowing for greater competition. By reducing tariffs and duties, the agreements reduce the cost for businesses in each country to sell their goods and services in the partner country, making it more profitable for them to compete. This can lead to more choices of products and lower prices for consumers, especially when there are relative competitive advantages between the partners to the agreement.
In addition to reducing the cost of transactions between countries, free trade agreements break down other procedural barriers to international trade. The governments of each country adopt nondiscriminatory rules and regulations and more transparent procedures. Free trade agreements can include provisions to protect intellectual property rights, open up government procurement opportunities, and ease foreign investment rules. There are generally provisions for facilitating customs procedures, granting access to financial services, easing restrictions on the entry of foreign nationals for business trips, and dispute settlement. Free trade agreements can also promote labor rights and environmental protection, promoting overall social wellbeing.
The Malaysian government such as MPIC and MTIB is making continuous efforts to increase the global market share for the Malaysian timber and timber products.
Trans-Pacific Partnership (TPP)
The Trans-Pacific Partnership (TPP) is an FTA initiative involving twelve (12) countries:
~ Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Viet Nam.
The Government views the TPP as an important initiative as Malaysia seeks to expand market access opportunities, enhance our competitive advantage, builds investor confidence in the country which draws foreign investments and builds capacity through FTAs.
There is also interest from foreign companies in non-TPP countries that are increasingly exploring Malaysia as a base of their operations to enjoy the benefits of the TPP. In addition, there are Malaysian companies that export to the US and Canada who are increasingly interested to see the negotiations concluded, especially since the graduation of Malaysia from the list of countries that enjoy from the General System of Preferences (GSP).
The TPP will also allow Malaysia to continue to be an integral part of the deepening economic integration taking place within the Asia Pacific region, but also enable Malaysia to engage in a more concrete way important trading partners such as the US, Canada, Mexico and Peru, with which Malaysia currently do not have any structured framework, such as trade agreements. As a member of the TPP, Malaysia will also be able to participate as an important link in the whole regional supply chain.
The objective of the negotiations is to develop an FTA agreement which will be able to adapt and incorporate current issues, concerns and interests. Working groups have been established in the following areas:
~ Market Access; Technical Barriers to Trade; Sanitary and Phytosanitary Measures; Rules of Origin; Customs Cooperation; Investment; Services; Non-Conforming Measures; Financial Services; Telecommunications; E-Commerce; Business Mobility; Government Procurement; Competition; Intellectual Property; Labour; Environment; Capacity building; Trade Remedies and Legal and Institutional.
The TPP negotiations is currently ongoing
Malaysia-Australia Free Trade Agreement (MAFTA)
Entry into Force Of MAFTA
MAFTA was signed on 22 May 2012 and entered into force on 1 January 2013, after both countries have completed their necessary domestic procedures. MAFTA marks another important milestone in Malaysia – Australia economic relations. In addition to complementing the ASEAN-Australia-New Zealand FTA (AANZFTA), MAFTA will open up new market opportunities for both countries and enhance trade and economic relations between the two countries. The scope of commitments under the MAFTA provides a more liberal and predictable operating business environment.
Business Opportunities for Exports of Malaysian Products
Under MAFTA, Australia has eliminate tariffs on 100% on her products upon entry into force of the Agreement (1st January 2013).
Malaysian companies are encouraged to take advantage of the business opportunities created by MAFTA and step up their promotional and marketing efforts to gain a strong foothold in the Australian market. Malaysian products with export potential into Australia include:
~ iron and steel products; plastic products; apparel and clothing; wood products of furniture, fixtures etc; palm oil and palm oil related products; cocoa and cocoa products; food products; and automotive products.
Lower cost for imports from Australia
Under MAFTA, Malaysia has committed to progressive elimination of import duties on 99% or 10,295 tariff lines by 2020:
~ Most tariff lines will be fully eliminated upon entry into force. This include products such as articles of iron and steel, automotive parts and components, as well as glass and glassware; and
~ Import duty on 357 tariff lines will be progressively eliminated by 2020. This includes products such as fruits, chemicals and chemical products, automotive vehicles and upstream iron and steel products.
Malaysian companies importing raw materials and intermediate goods or inputs from Australia will be able to import with lower prices. This will enable them to reduce their cost of production and improve their competitiveness.