In Malaysia, a Manufacturing Bonded Warehouse is known every bit Licensed Manufacturing Warehouse (LMW) established nether the provision of department 65/65A of the Customs Act 1967. An LMW is a manufacturing unit of measurement (factory) granted to whatever mortal for warehousing too manufacturing approved products on the same premise. It is primarily intended to cater for export oriented industries. Customs duty exemption is given to all raw materials too components used straight inwards the manufacturing procedure of approved create from the initial phase of manufacturing until the finished production is in conclusion packed ready for export.
A society that intends to instruct a licence to laid upwards Licensed Manufacturing Warehouse facilities volition necessitate to locate the warehouse inwards a less developed areas, inwards delineate amongst Government’s policy to spread the export-oriented too task intensive industries to those areas. However, inwards this respect, a sure enough score of flexibility is exercised. The Director General of Customs tin nevertheless take in the setting upwards of the Licensed Manufacturing Warehouse inwards the areas other than inwards the less developed areas, on the delineate of piece of occupation organization human relationship of the especial nature of the manufacturing operation.
Application for License
Application to found a warehouse for the storage of dutiable goods nether Section 65 too to industry such goods for the production of other dutiable goods nether the provision of Section 65A tin last made simultaneously. Application forms volition necessitate to last submitted to the State Customs Director where the proposed warehouse is to last located through the nearest customs office. All data required inwards the application shape must last fully furnished together amongst certificates, plans too other supporting documents.
License Period
Licence nether Section 65 too Section 65A is issued at the discretion of the Director General of Customs too the fee is fixed at RM2,402.00 (Two Thousand too Four Hundred Ringgit Malaysia for licence nether Section 65 too a nominal 2 Ringgit Malaysia for licence nether Section 65A). It is for a menses of 2 years subjected to renewal. The licence too hence granted shall last subjected to such atmospheric condition every bit the Director General of Customs may specify.
If the production manufactured falls nether the categories of goods liable to excise duty, an excise licence is required too its fee is every bit prescribed nether the Third Schedule, Excise Regulations, 1977.
Types of Premises
Premises considered suitable every bit Licensed Manufacturing Warehouse must last of permanent structure too secured to the satisfaction of the Director General of Customs.
The edifice must incorporate split upwards storage infinite for raw materials too finished products. It must too render split upwards infinite to last used alone for the manufacturing of suitable goods.
Take from Kastam Diraja Malaysia website
To comply amongst the Royal Malaysian Customs Department (RMCD) requirements, an LMW status society has to submit monthly too yearly render reports, i.e., M1, M2, too M4.
An LMW licensed society is given a bound past times tariff codes to import duty gratuitous raw materials, mechanism or spare parts. Thus, it is of import for them to rail too create ambit the duty exempted imports against this limit.
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