Licensed Warehouse
INTRODUCTION
This is a basic explanation and guideline for the general public about the concept of Licensed Complete Public Warehouse. Holders of the Public Warehouse License as well as importers and exporters can benefit from such a service provided by the Royal Malaysian Customs Department.
PURPOSE
1. Creation of the Licensed Public Warehouse is based on the concept where the warehouse will act as a central storage and distributor of goods within the country or international trade. Facilities at the Licensed Public Warehouses are specifically for traders dealing with import and exports.
2. In order to achieve the realization of a Licensed Public Warehouse, the Royal Malaysian Customs Department allows license holders to act as delivery representatives of owners who keep their goods at the warehouse. The approval is only given on 3 instances: -
1.Transfer of goods from import stations to Licensed Warehouse only
2.Transfer from one Licensed Warehouse to another Licensed Warehouse, to
Licensed Warehouse Factories, to Free Trade Zones or for exports.
3. Matters
related to payment of duty for goods kept in licensed warehouse only.
LICENSES
BASIC QUALIFICATION
The basic qualification required for a company interested to apply for a Public Warehouse license is as follows: -
a. Applicants company is registered in Malaysia
b. Bumiputra equity in the applicants company must not be less than 30%
c. The location of the warehouse premises must no be close to factories or warehouse that manufactures/keeps flammable or explosive materials.
STEPS FOR APPLICATION AND LICENSE
1. License application will require 4 copies of form JKED No. 1 and is forwarded to the state Customs Director where the warehouse is proposed to be built. Copies of the application will be forwarded to: -
Director General of Customs
Royal Malaysian Customs Headquarters
Customs Division
Passenger and Warehousing Branch
Level 4 North, No.3 Persiaran Perdana,
Ministry of Finance Complex
Precinct 2, Federal Government Administration Center
62592 Putrajaya
2. Supporting documents that is required to be submitted together with the application includes: -
1. Memorandum and Articles of Association / Certificate of Company registration
2. Form 24 and Form 49
3. Plans
4. Site / Building rental agreement
3. State Customs will extend the complete application to Customs Headquarters, which will then bring it to the attention of the Treasury for consideration.
4. Results of the application will be announced to the applicant and the issuance of license to the successful applicant will be carried out by the State Director of Customs.
5. The fee for the license is RM2, 400.00 which will be valid for a period of 2 years.
LICENSE RENEWAL
License Renewal is submitted to the State Director of Customs using form JKED No. 1 as in Attachment A in 2 copies. Application for renewal will have to be submitted a month prior to the expiry of the license.
AMENDMENT TO LICENSE OWNERSHIP
Application for the change of ownership of a license can be considered subject to the following: -
i. Change in the name of the company
ii. The company has been taken over by another company
Application for change of ownership will have to attach the following documents: -
i. Original transfer certificate by Registrar of Business and ‘Memorandum and Articles of Association’.
ii. If there is a change in the Board of Directors or Management, application for new licenses must be made. The new company which had taken over from the previous management will have to submit its application and enclose certificates / letters from the previous management indicating that they do not wish to continue managing the business and a new company has taken over its operations.
APPLICATION TO AMEND THE FLOOR STRUCTURE OF A LICENSED WAREHOUSE AREA
Application will have to be submitted in a form as in Attachment B and is forwarded to the State Director of Customs where the licensed warehouse is operating. Plans indicating the change in the structure will need to be attached as well.
RESPONSIBILITIES OF LICENSEE
Every owner of the Public Warehouse License must adhere to the license terms as described in detail in Attachment C. Among responsibilities that must be executed by a license owner includes: -
a. Administration of warehouse
b. Warehouse safety
c. Administering of records of goods kept in warehouse
d. Provide facility required in relation to warehouse administration as well as an office of customs officers to do their duty
e. Payment of duties/goods tax of customers that could not be accounted
f. To provide a bank guarantee of which the value is 10% of total tax involve for goods kept in the warehouse at any particular time
g. Provide monthly statements as in Attachment D
h. Provide a research room
PAYMENT OF DUTIES
Payment of duties for part consignment must be made using customs form No. 9. For payment of duties on full consignment, customs Form No.1 must be used.
WAREHOUSE SAFETY AND GOODS IN WAREHOUSE
Safety of warehouse and goods inside is the responsibility of the owner of the license.
GOODS
Goods allowed to be kept in warehouse include: -
a. All duty goods either for import or export.
b. Goods from the Free Trade Zones meant for export or local market.
c. Goods from the Licensed Manufacturing Warehouse meant for export or local market.
d. All Excise duty goods produced by local factories.
Warehouse activities allowed at Public Licensed Warehouses includes: -
a. Warehouse activities.
b. Break Bulking. Customs Form No. 9 is used for duties payment and sales tax involve.
c. Repackaging in the following situations: -
i. Homogenous items packed into smaller/larger packages
ii. Repackaging of several items into/become a set of items
d. Re-labeling of imported goods. The goods are labeled with the name of the importer or distributor before release to the local market
e. Devending, Importers are allowed to sell goods directly to buyers at the warehouse. This can be carried out either when the goods had been settled of its tax or otherwise
f. Consolidation
i. Consolidation of goods under the export duty with local goods that does not require import duty as well as goods that require excise duty and sales tax for export.
ii. Consolidation of goods from the Free Trade Zone and License Manufacturing Warehouse with goods specified in paragraph (i) for export.
iii. Consolidations of goods requiring import duty with goods in paragraph (i)
iv. and meant for re-export.
v. Consolidation is allowed for goods owned by more than an exporter.
vi. Consolidation in paragraph (i) – (iv) are only allowed for exports using containers.
g. Enter port Business
i. Re-export of imported goods.
ii. Goods imported for this activity are bound under the Customs Orders (Prohibition Regarding Imports) 1988 and Customs Orders (Prohibition Regarding Exports) 1988.
GOODS ENTERING
a. Transferring of goods from the import area to the warehouse will require Customs Form No. 8. Once the goods are already in the warehouse, Customs Form No. 1 will have to be prepared by the importers or its representatives (Licensed Public Warehouse given permission to act as delivery agent)
b. Excised duty goods are transferred from the factory premises to the Licensed Public Warehouse for the purpose export will require Excise Form No. 8.
PROHIBITED GOODS/IMPORT/EXPORT LICENSE
a. Goods that are definitely prohibited for imports and exports are not allowed to be placed at the warehouse.
b. Goods that are subject to the import license or special permission as stated by Customs Order (Prohibition Regarding Imports) 1988 can be brought in the Licensed Warehouse before the import license is produced on the condition that the import license is shown to customs within 48 hours from the point of arrival of goods to the Licensed Warehouse. Prohibited goods imported meant for re-export will need to use Customs Form No. 8
For forbidden exported goods, export license will need to be produces before export is allowed.
MOVEMENT
MOVEMENT FROM OTHER WAREHOUSES IN PENINSULAR MALAYSIA
Customs Form No. 8 will have to be used. Rules 30 allocation, Customs Rules 1977 will have to be adhere.
Rules 30: -
a. When the owner of dutied goods require to move all or some of the goods from one customs warehouse to another or to a licensed warehouse subject to Section 65 or 65A, either the owner or through the agent: -
i. Produce to the designated customs officer at the warehouse where the goods are kept an application from Form No. 8 Table 2 for permission to transfer the goods.
ii. Produce to the designated customs officer, if related, owners’ copy of receipt issued under small section (1) allocation of Section 67 Act.
iii. Produce a bond or other type of deposits as agreed by the designated customs officer to keep the transferred goods at a customs warehouse or a licensed warehouse.
iv. Pay all charges if any that has to be paid on the goods to be transferred.
b. Designated customs officer will issue an order allowing goods to be transferred on the condition that in issuing the order, the designated customs officer is allowed with notice on the order impose other terms necessary to safeguard the results.
c. Duty goods are not allowed to be transferred by land or by rail unless through a channel approved by the Director General. In order for duty goods to be transferred by land, approval must be obtained from the Director General as well as subject to other terms that he feels appropriate.
d. Owners of goods or its agents must settle immediately customs duties levied or any other goods that are not kept within a licensed warehouse or those within a licensed warehouse that are subject to Section 65A act without contravening any acts.
MOVEMENT FROM WAREHOUSE FOR RE-EXPORT
Customs Form No. 8 must be used and Rule 31 of Customs Rules 1977 adhered to.
Rule 31 states: -
a. When duties are imposed on owners of goods under this Act or any other Act regarding excise wishes to transfer all or partially goods from a licensed customs warehouse under Section 65A for export, the owner must either by himself or through his agent:
i. Produce to the designated Customs Officer at the warehouse where the goods are kept, an application in customs Form No. 8 Table 2 for permission to transfer the goods
ii. Produce to the designated Customs Officer, if related; a copy of the receipt issued under small Section (1) of Section(67) act;
iii. Produce a bond or other type of deposit as approved by the designated Customs
iv. Officer with regards to the re-export of the goods.
v. Settle all fees that have to be paid on the goods that need to be transferred.
b. The designated Customs Officer must then issue an order allowing the transfer of the goods on the condition that by issuing the order, a designated Customs Officer with a note to the order imposed other terms that he feels appropriate to safeguard the results.
c. Duty goods are not allowed to be transferred by land unless by rail bypassing a Main Customs area. This is subject to the condition that duty goods transferred by land can only be moved in a vehicle approved by the Director General subject to terms that he feels necessary.
d. Owners of transferred goods or its agents under allocation of this rule must produce a statement issued by the designated Customs Officer that the goods has been exported or else the owner or its agent must settle the levied customs duties on all or any part of the goods that was not accountable.
MOVEMENT OF GOODS FROM LICENSED WAREHOUSE IN PENINSULAR MALAYSIA TO A LICENSED WAREHOUSE IN SABAH AND SARAWAK OR OTHERWISE
Customs Form No. 8 must be used and is subject to Rule 30 of the Customs Rules 1977. A Bank Guarantee must be produced. Boxes or packages transferred must be in its original state and is not opened. Bill of Lading, Airway Bill or other documents must indicate that the goods are to be delivered to a receiver warehouse.
SALES TO INDIVIDUAL/INSTITUTIONS, ENTITLED TO RECEIVE DUTY EXEMPTION
Individuals/Institutions that are entitled to receive duty exemption must use Customs Form No.1/No.9 and claim exemption by filling up the form.
RECORDS/GOODS ARRANGEMENTS
a. All goods are allowed to be kept in a Licensed Warehouse unless the goods are deemed dangerous. Items such as chemicals, raw materials, poisonous items, inflammable items must be kept separately. Stock keepers must keep them based on lots or consignment.
b. Goods in warehouse must be arranged, labeled and stored according to its consignment for easy checking and card stock must be produced for each package.
c. Separate records must be kept for each importers/exporters.
d. How goods are moved out from the warehouse must be based on lot/consignment and must be according to a first in first out (FIFO) system where appropriate.
SURVEY ROOMS AND APPLICATION FOR SURVEY
a. Licensee must provide a suitable survey room. Application for survey and duty remittance must be according to Rule 23 and 25 of Customs Rules 1977.
Rule 23
Every crate, can, container or package that contains duty goods must for the purpose of payment of customs duty be classified as containing goods where its quality must not be less than what is normally available in crates, cans, containers or packages of its kind in normal daily circumstances.
This applies; unless the owner or its agent writes in formally for investigation within 24 hours or within a period longer as agreed by the designated Customs Officer after the arrival of the duty goods to the customs warehouse or licensed warehouse where the goods are kept according to Section 66 Act.
Rule 25
i. When the owner of duty goods or its agents had submitted an application according to Rule 23, the designated customs officer must allow the owner or its agent to investigate and restore the goods. Investigation must be done with the Customs Officer present and overseeing the activity.
ii. Upon investigation, if it is discovered that the quantity of goods are less than initially declared, the designated Customs Officer acting on the instructions of the Customs Director General can remit the duty on the lesser items.
iii. The designated Customs Officer, on the request of the owner or its agent and after the owner or its agent had made a payment of RM20.00, allow further investigations on the duty goods contained in the crates, cans, containers or packages and allocation under paragraph (1) and (2) must be applied.
iv. Once the duty goods have been investigated under allocation of paragraph (1) and is transferred to allocations under Rule 31 to another customs warehouse or to a licensed warehouse or to a licensed warehouse under Section 65A Act, investigations on the goods are not allowed to be carried out at the warehouse as stated in paragraph (3)
v. After the investigation and identification of alcoholic liquors, the crates will need to be tied with wires and sealed by the owner or agent with the agreement of the designated agent.
Interested traders who are keen to use the Licensed Public Warehouse and requires further information can contact the nearest Royal Malaysian Customs Department or
The Royal Malaysian Customs Headquarters,
Customs Division,
Level 4 North, No. 3 Persiaran Perdana,
Ministry of Finance Complex,
Precinct 2,
Federal Government Administration Center,
62592 Putrajaya.
Tel.: (603) 8882 2645
Fax: (603) 8889 5866
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