Basic information
Outline of the system
Timber and the timber products that are listed under Item 2, Second Schedule, Part 1 of the Customs (Prohibition of Imports) (Amendment) (No.3) Order 2020, are subjected to import licenses, issued by the Malaysian Timber Industry Board (MTIB).
Product coverage
MTIB administers issuance of import licences for the importation of logs, roughly squared or half squared logs and baulks poles and piles of Bakau; sawn timber; particleboard; fibreboard; plywood and veneered panels and similar laminated wood to be further processed in the country (Peninsular Malaysia).
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
MTIB licensing system does not restrict any value or even quantity or value of imports.
Questions for products under restriction as to the quantity or value of imports
Not applicable.
The system applies to products originating from which country?
The system applies to timber products originating from all countries.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
Import licences are issued under the Customs (Prohibition of Imports)(Amendment) (No.3) Order 2020, which is made pursuant to the powers conferred by subsection 31(1) of the Customs Act 1967. Goods subjected to import licensing are scheduled in the said Order.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Is it possible for the government to abolish the system without legislative approval?
By virtue of subsection 31(1) of the Customs Act 1967, it is possible for the Executive to abolish the system without legislative approval since the said provision clearly confers powers to the Executive to prohibit the importation into Malaysia either absolutely or conditionally.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
All firms and organisations are eligible provided they are domiciled in Peninsular Malaysia.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Malaysian Timber Industry Board (MTIB)
Documentation requirements
What information is required in applications?
For permission to import logs or logs, roughly squared or half squared logs and baulks (under Item 2(1), Second Schedule of the Order) application should apply to the Import/Export Committee of MTIB by filling the application form, including the provision of the following information:
- name and address of importer;
- port of entry;
- quantity to be imported;
- species of timber to be imported;
- name of exporter;
- name of buyers and premise for timber processing;
- purpose of importation: to be processed for own use/for re export/domestic trade;
- country of origin of goods;
- Copies of sales agreements/supply contracts made with overseas suppliers and certified by the Malaysian embassies in the respective countries (Thailand, Laos. Cambodia, Vietnam, Singapore, Papua New Guinea, Solomon Islands, Timor Leste) or the authorities/bodies/agencies recognized by the government of that country (Myanmar, the Philippines); and
- Copy of Business Registration Certificate (Form D) under the Business Registration Act 1956 and Business Licence (Form B); or A copy of the Memorandum and Articles of Association, a copy of Form 24 (List of Shareholders) and a copy of Form 49 (List of Board of Directors). Under Company Act 2016, the company could submit (Register of Company) as supporting document.
For permission to import poles & piles of Bakau, sawn timber, particleboard, fibreboard and plywood, veneered panels and similar laminated (under Item 2(3), (4), (5) and (6) Second Schedule of the Order) application should apply to MTIB by filling the application form, including the provision of the following information:
- name and address of importer;
- port of entry;
- quantity to be imported;
- name of exporter;
- name of buyers;
- country of origin of goods; and
- Copy of Business Registration Certificate (Form D) under the Business Registration Act 1956 and Business Licence (Form B); or A copy of the Memorandum and Articles of Association, a copy of Form 24 (List of Shareholders) and a copy of Form 49 (List of Board of Directors). Under Company Act 2016, the company could submit (Register of Company) as supporting document.
What documents is the importer required to supply with the application?
For permission to import logs or logs, roughly squared or half squared logs and baulks: Documents to be furnished to MTIB upon approval from the Import/Export Committee should comprise:
- approval letter from the Import/Export Committee of MTIB;
- import JK 69 Form; and
- import documents – original/copy Certificate of Origin/Form D from the valid exporting country, invoice, packing lists and bill of lading.
For permission to import poles & piles of Bakau, sawn timber particleboard, fibreboard and plywood, veneered panels and similar laminated For permission to import poles & piles of Bakau, sawn timber and plywood, veneered panels and similar laminated Documents to be furnished to MTIB upon approval from MTIB should comprise:
- approval letter from MTIB;
- import JK 69 form; and
- import documents - original Certificate of Origin/Form D from the valid exporting country, invoice, packing lists and bill of lading. For bakau, invoice/manifest/receipt payment/packing lists/other information from the country of export, if available.
Window of submission of an application
How far in advance of importation must application for a licence be made?
Applications should be made in advance before the arrival of the goods.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Applications for import permit and importation can be made at any period of the year.
Issuing the license
Can a licence be granted immediately on request?
Licences may be issued immediately provided that prior approval has been obtained by the importers from the Import/Export Committee of MTIB and properly completed documentations are furnished to MTIB.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
In certain circumstances, import permission can be given for goods which have inadvertently arrived at the point of entry.
Which administrative body is responsible for approving application of licences?
For poles and piles of Bakau; sawn timber, particleboard, fibreboard and plywood including laminated veneer are not subjected to the Committee approval.
Must the applications be passed on to other organs for visa, note or approval?
Applications for import licences for logs, roughly squared or half squared logs and baulks are processed by MTIB based on approval obtained through an internal MTIB Committee, i.e. the Import/Export Committee, prior to final approval by the Royal Customs Department of Malaysia.
Are there any other conditions attached to the issue of a licence?
No.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
Yes.
What is the amount of the fee or charge?
Only for CITES import permit, RM 50.00 will be charged per permit.
Is there any deposit or advance payment required associated with the issue of licences?
No.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
Not applicable.
Are the reasons for any refusal given to applicants?
Not applicable.
Have applicants a right of appeal in the event of refusal to issue a licence?
Not applicable.
If so, to what bodies and under what procedures?
Not applicable.
Importation
Are there any limitations as to the period of year during which importation may be made?
Applications for import permit and importation can be made at any period of the year.
What documents are required upon actual importation?
Actual authorisation will be made by MTIB and Royal Customs Department of Malaysia on the JK 69 Form. Import documents required during inspection are MTIB Approval Letter, original Certificate of Origin, invoice, packing list and Bill of Lading; and The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) export permit from exporting country (if relevant).
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
CITES import permit is a requirement for the importation of CITES listed timber species under the International Trade in Endangered Species Act 2008 [Act 686] issued by MTIB. The timber species covered are specified under the CITES Appendices II and III and the types of timber products are given in the respective Annotations.
Starting 1 July 2017, MTIB enforced the requirement for certifying on legality source on import of timber and timber products except bakau whereby any one of the documents are required to be presented during physical inspection besides other documents mentioned in item 10(a) (b) that is:
a) Forest Law Enforcement, Governance and Trade (FLEGT) licence; or
b) Certificate of Timber Certification (FSC, PEFC, MTCS); or
c) Certificate of Voluntary Legality Scheme; or
d) Legality Document issued by recognised Agency/Body/Association related; or
e) Self-Declaration recognised by a Competent Third Party; or
f) Copy of Customs Declaration from exporting country.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
Import licence issued will be valid for sixty (60) days from the date of issuance. Extension of licence is not allowed. Should the licence expire before actual importation is done, the importer must apply for a new import licence.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
No.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Not applicable.
Is foreign exchange always available to cover licences issued?
Not applicable.
What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable.