Ultimate Guide to an Export Permit in Malaysia

What is an Export Permit in Malaysia

An export permit in Malaysia is a document law requiring certain goods from the country. The purpose of an export permit is to control the flow of goods out of Malaysia and to ensure that they are not exported in violation of Malaysian laws or international agreements.

There are two main types of export permits in Malaysia:

  • Approved Permit (AP): This is the most common type of export permit required to export a wide range of goods. The AP is issued by the Ministry of International Trade and Industry (MITI), which is responsible for regulating trade in Malaysia.
  • Special Export Permit (SEP): This is a more specialized type of export permit and is required for the export of goods that are subject to special controls, such as strategic goods, firearms, and dangerous goods. The relevant government agencies, such as the Ministry of Home Affairs or the Ministry of Defence, issue the SEP.

The requirements for obtaining an export permit will vary depending on the exported goods. However, in general, the following documents will be required:

  • Application form
  • Commercial invoice
  • Packing list
  • Certificate of origin
  • Other supporting documents, as required

Applications for export permits can be submitted online through the MITI’s Trade Portal. The processing time for applications will vary depending on the complexity of the application and the type of goods being exported.

Here are some of the benefits of obtaining an export permit in Malaysia:

  • Compliance with Malaysian laws and international agreements
  • Protection of intellectual property rights
  • Access to new markets
  • Increased competitiveness in the global marketplace

If you are considering exporting goods from Malaysia, contacting the relevant government agency is essential to determine whether you need an export permit. Failure to obtain an export permit when required can result in penalties, including fines and imprisonment.

Export Permit vs Export License in Malaysia

In Malaysia, the terms “export permit” and “export license” are often used interchangeably, but there is a subtle distinction between the two.

  • Export permit: An export permit is a document that authorizes the exporter to export specific goods from Malaysia. It is issued by the relevant government agency, typically the Ministry of International Trade and Industry (MITI), and serves as proof of compliance with Malaysian export regulations.

  • Export license: An export license is a broader term encompassing export permits and other forms of authorization to export goods. It can also refer to a general license allowing the exporter to export a range of goods without requiring individual permits.

Generally, the term “export permit” is used more frequently in Malaysia, while “export license” is more commonly used in other countries. However, the two terms are essentially interchangeable in the context of Malaysian export regulations.

Here is a table summarizing the key differences between export permits and export licenses in Malaysia:

Feature Export Permit Export License
Definition Document authorizing export of specific goods A broader term encompassing export permits and other export authorization
Issuing authority Relevant government agency (typically MITI) Government agency or other authorized body
Purpose Proof of compliance with export regulations Authorization to export goods
Usage Specific goods require individual permits General licenses allow the export of a range of goods

In practice, obtaining an export permit or license in Malaysia involves applying to the relevant government agency, providing supporting documentation, and adhering to the specific requirements for exported goods. Failure to obtain the necessary authorization can result in penalties, including fines and imprisonment.

How to Export From Malaysia

Exporting goods from Malaysia involves steps and procedures to ensure compliance with Malaysian laws and international regulations. Here’s a comprehensive guide on how to export from Malaysia:

  1. Identify your export product: Determine the goods you intend to export and ensure they are classified under the Malaysian Harmonized System (HS) codes.

  2. Register your company: Register your business with the Companies Commission of Malaysia (SSM) and obtain a valid business registration certificate (BRC).

  3. Obtain an export license: Apply for an export license from the Ministry of International Trade and Industry (MITI). The type of license depends on the goods being exported.

  4. Prepare export documentation: Gather the necessary export documents, including:

    • Commercial invoice: A detailed document describing the goods, quantities, prices, and buyer’s information.
    • Packing list: A detailed list of the goods, packaging, and weights.
    • Certificate of origin: A document confirming the country of origin of the goods.
    • Other supporting documents, as required for specific goods or destinations.
  5. Arrange transportation: Choose a reliable freight forwarder or shipping company to handle the transportation of your goods. Book freight space and obtain a bill of lading (B/L).

  6. Complete customs clearance: Submit the export documentation and B/L to the Royal Malaysian Customs Department (JKDM) for clearance. Pay any applicable export duties and taxes.

  7. Monitor shipment: Track the status of your shipment and ensure it arrives at the destination safely and within the agreed-upon timeframe.

  8. Address post-shipment issues: Resolve any discrepancies or problems arising during or after shipment, such as customs delays or damage claims.

Additional Tips:

  • Familiarize yourself with Malaysian export regulations and restrictions.
  • Attend export seminars or training programs offered by MATRADE (Malaysia External Trade Development Corporation).
  • Utilize MATRADE’s export assistance services for guidance and support.
  • Network with other Malaysian exporters to gain insights and experience.

What Documents Are Needed for Exporting from Malaysia

The documents required for exporting goods from Malaysia depend on the type of goods being shipped, the destination country, and the value of the shipment. However, in general, the following documents are required for all exports:

Essential Documents:

  1. Commercial Invoice: A detailed invoice providing the following information:

    • Exporter’s name and address
    • The importer’s name and address
    • Description of goods, including quantity, weight, and HS code
    • Unit price and total value of goods
    • Terms of payment
    • Shipping terms and destination
  2. Packing List: A detailed list of the goods, including:

    • Package numbers
    • Description of goods
    • Quantity and weight of goods
    • Packing dimensions
  3. Certificate of Origin: A document confirming the country of origin of the goods. The exporter, a chamber of commerce, or the relevant government agency can issue it.

  4. Bill of Lading (B/L): A document issued by the freight forwarder or shipping company acknowledging receipt of the goods for transportation. It serves as a contract of carriage and a document of title.

  5. Export Declaration Form: A form filled out by the exporter, providing details about the goods, exporter, importer, and shipment.

  6. Insurance Certificate (Optional): If the goods are insured, an insurance certificate is required to protect against loss or damage during transit.

Additional Documents (May be Required):

  • Export License: Certain goods require an export license from the relevant government agency, such as the Ministry of International Trade and Industry (MITI).

  • Sanitary and Phytosanitary (SPS) Certificates: Goods of animal or plant origin may require SPS certificates to ensure they meet health and safety standards.

  • Unique Documents for Specific Goods: Certain goods, such as firearms, pharmaceuticals, or hazardous materials, may require additional documentation based on their nature or destination country regulations.

It is advisable to consult with an experienced freight forwarder or customs broker to determine the exact documentation requirements for your specific export. They can guide you through the process and ensure you have all the necessary paperwork.