Multimedia Development Corporation
Procedures Free Procedures and Guidelines on Applications for Duty Free Importation of MalaysiaIT/Multimedia Equipment by MSC Malaysia-status companies. INTRODUCTION 1. Multimedia Development Corporation Sdn Bhd (“MDeC”) is responsible for the processing of import duty and sales tax exemption applications from MSC Malaysia-status companies and this incentive is a part of the MSC Malaysia Bill of Guarantee.
CRITERIA 2. The criteria for application for import duty and sales tax exemption are as follows: i. All equipment imported are ‘IT/multimedia’ equipment, IT/multimedia’ ii. Equipment imported are not available locally (i.e No local manufacturer of the equipment), iii. Equipment are not for trading, iv. Equipment are to be ‘Directly used’ for the MSC-Malaysia Approved activities, and v. MSC Malaysia-status company (hereafter to be known as applicant) complies with the Relocation requirement as stated under the ‘Conditions of Grant’ of MSC Malaysia-status.
CONDITIONS OF APPLICATION 3. Applications for import duty and sales tax exemption will be tabled and reviewed by a Committee comprising of officers from Ministry of Finance, Malaysian Communication and Multimedia Commission, Malaysian Industrial Development Authority, Royal Customs Department and MDeC. An application will be considered if the following conditions are fulfilled: i. Application must be submitted prior to importation date, customs clearance or purchase of equipment. Applicant is advised to submit the application at least one (1) month before importation date or purchase to ensure smooth processing of application.
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Multimedia Development Corporation
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Applicant must submit complete information i.e Cover letter, Application form, Lampiran C and supporting documents (brochures, catalogues or photos of equipment). In reviewing the application, the Committee will also determine the market. availability of such equipment in the local market If the Committee finds that the equipment can be sourced locally, that particular equipment may not be recommended for approval. Applicant is also entitled to a sales tax exemption if the IT/multimedia equipment is tax purchased from a local manufacturer manufacturer.
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DURATION OF EXEMPTION 4. Exemption can be considered for a period of up to two (2) years from the date of application received by MDeC. Application for extension of duration must be made prior to the expiry of the exemption approval period and applicants are advised to submit the application at least 1 (one) month before the expiry date.
PROCEDURES 5. Applicants are required to ensure completeness and accuracy of the completeness Application Form and Lampiran C. Normally, in view of technicalities involved, applicants will engage a freight forwarder to assist in completing the Lampiran C. Please provide description of the equipment in relation to the MSC Malaysia-approved activities under the ‘Remarks’ column in the Lampiran C. We regret that incomplete applications will be returned. The completed Application form and Lampiran C together with a Cover letter of your intent should be submitted to MDeC, attention to the Facilitation Department. Please refer to the address at the end of this document. Upon receiving the completed documents, MDeC will take not more than 2 working days to do the necessary assessment and review on the completeness of the application. MDeC will ensure that the equipment is for the operational use of the MSC Malaysia-approved activities as detailed in your business plan during your application for the award of MSC Malaysia-status previously. Once the application is deemed satisfactory, MDeC will issue an Acknowledgment Letter within the stated 2 working days. This letter states that the applicant’s particular application for duty-free importation has been received by MDeC pending Committee’s review and Ministry of Finance’s approval. We will inform applicant via phone/e-mail to collect the Acknowledgment Letter from our office.
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In urgent cases such as when the imported equipment have arrived at the port in Malaysia, applicant can use this Acknowledgment Letter coupled with a Bank Guarantee to Royal Customs Department of Malaysia (to the total amount of duties and sales tax) to clear the equipment first. Applicant can apply for the Bank Guarantee through their current arrangement with financial institutions. Bank Guarantee must be made out to ‘Ketua Pengarah Kastam Malaysia’. Application will be tabled in a special committee meeting which normally convenes twice a month in MDeC for a decision. Once the decision is made, Ministry of Finance (“MOF”) will issue an official letter addressed to the applicant. Normally, the whole process, from company’s submission to company’s MOF’s decision, takes 2 to 3 working weeks. MDeC will obtain the official letter on applicant’s behalf and subsequently inform applicant via phone/email to collect from us. If the application is approved, applicant can claim the Bank Guarantee which had been submitted earlier to clear the equipment from Royal Customs Department of Malaysia, or if the equipment has not been cleared yet, applicant may proceed to do so using the official MOF letter. We advise applicant to check through the list of equipment approved by the MOF since there are possibilities that some equipment may be disapproved. In this case, the applicant will have to bear the duties of the disapproved equipment.
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ADDITIONAL INFORMATION 12. Please be advised that any communication device, which is connected to network, the public network must obtain approval from SIRIM Berhad (formerly known as Standards and Industrial Research Institute of Malaysia). Approval from SIRIM could either be for the Import Permit, Type Approval or both. In either case, it must be acquired before applicant is allowed to clear the equipment from Royal Customs Department of Malaysia. Enquiries regarding this matter can be made to SIRIM Equipment Testing Section, tel: 603-5544 6949. ‘Apparatus Assignment’ from Malaysia Communication and Multimedia Commission (“MCMC”) is required for equipment/devices that transmit at certain ranges of spectrum frequency. Enquiries regarding this matter can be made to, tel: 603-8688 8000. Please be informed that official letters from MOF are sensitive documents and applicants are advised to treat them with care. In view of this, applicants are to collect the documents personally from MDeC once we
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Multimedia Development Corporation
inform of their availability. We will not deliver the documents via registered post or courier. In cases of lost documents, applicants are to submit the declaration or police report to MDeC, before we can obtain certified copies from MOF. 15. a) Correspondences to MDeC are to be made to the following personnel: Aida Masuri Mustafa Executive, Facilitation Department Industry Development Division Multimedia Development Corporation Sdn Bhd MSC Malaysia e-Xpats Centre Suite 2.1, Level 2, East Wing 3539 FSBM Plaza Jalan Teknokrat 7 63000 Cyberjaya, Selangor Darul Ehsan, Malaysia. Tel : 603-8315 3159 Fax: 603-8315 3008 E-mail : masuri@mdec.com.my b) Syarifuddin Abdul Wahab Senior Executive, Facilitation Department Industry Development Division Multimedia Development Corporation Sdn Bhd MSC Malaysia e-Xpats Centre Suite 2.1, Level 2, East Wing 3539 FSBM Plaza Jalan Teknokrat 7 63000 Cyberjaya, Selangor Darul Ehsan, Malaysia. Tel : 603-8315 3147 Fax: 603-8315 3008 E-mail : syarifuddin@mdec.com.my
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PROCESS FLOW 16. Process flow is indicated below:
Submission of application
A cover letter, a completed Application Form and a completed Lampiran C is sent to MDeC; along with supporting document (Brochures, Catalogues, Pictures)
2 WORKING DAYS
MDeC checks for completeness
MDeC checks for completeness of the Application Form and Lampiran C. Any amendments / improvements / recommendations will be suggested to clients during this process
Acknowledgment Letter 5 WORKING DAYS Approval Meeting in MDeC
MDeC issues an Acknowledgment Letter to applicant. In urgent cases, applicant can use the Acknowledgment Letter, attached with a Bank Guarantee (same amount as the tax exemption being applied) in order to collect the multimedia equipments from the customs.
Application will be tabled in ‘Mesyuarat Jawatankuasa -Multimedia’ inPengecualian Cukai Peralatan / not END MDeC. Decision to approve approve is made during the meeting.
5 WORKING DAYS
Approval Letter
Decision and minutes of the meeting is sent to MOF for endorsement. MOF issues Approval Letter.
Approval Letter is forwarded to client
Once the Approval Letter is ready, MDeC will inform applicant via telephone/e-mail. Client will arrange for collection and use the Approval Letter to reclaim the Bank Guarantee from the Customs.
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