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Multimedia Development Corporation
Page 1 of 5Version 8.0, 22 August 2008
ProProProProcedures and Guidelines on Applications for Duty Fcedures and Guidelines on Applications for Duty Fcedures and Guidelines on Applications for Duty Fcedures and Guidelines on Applications for Duty Freereereeree IIIImportation of mportation of mportation of mportation of IT/MultimediaIT/MultimediaIT/MultimediaIT/Multimedia Equipment byEquipment byEquipment byEquipment by MSC MalaysiaMSC MalaysiaMSC MalaysiaMSC Malaysia----sssstatustatustatustatus companies.companies.companies.companies.INTRODUCTIONINTRODUCTIONINTRODUCTIONINTRODUCTION1.
 
Multimedia Development Corporation Sdn Bhd (“MDeC”) is responsible forthe processing of import duty and sales tax exemption applications fromMSC Malaysia-status companies and this incentive is a part of the MSCMalaysia Bill of Guarantee.CRITERIACRITERIACRITERIACRITERIA2.
 
The criteria for application for import duty and sales tax exemption are asfollows:i.
 
All equipment imported are ‘‘‘‘IT/ IT/ IT/ IT/multimedia’multimedia’multimedia’multimedia’ equipment,ii.
 
Equipment imported are not available locally (i.e No localmanufacturer of the equipment),iii.
 
Equipment are not for trading,iv.
 
Equipment are to be ‘Directly used’‘Directly used’‘Directly used’‘Directly used’ for the MSC-Malaysia Approvedactivities, andv.
 
MSC Malaysia-status company (hereafter to be known as applicant)complies with the Relocation requirement as stated under the‘Conditions of Grant’‘Conditions of Grant’‘Conditions of Grant’‘Conditions of Grant’ of MSC Malaysia-status.CONDITIONS OF APPLICATIONCONDITIONS OF APPLICATIONCONDITIONS OF APPLICATIONCONDITIONS OF APPLICATION3.
 
Applications for import duty and sales tax exemption will be tabled andreviewed by a Committee comprising of officers from Ministry of Finance,Malaysian Communication and Multimedia Commission, MalaysianIndustrial Development Authority, Royal Customs Department and MDeC.An application will be considered if the following conditions are fulfilled:i.
 
Application must be submitted priorpriorpriorprior to importation date, customsclearance or purchase of equipment. Applicant is advised to submitthe application at least one (1) month before importation date orpurchase to ensure smooth processing of application.
 
Multimedia Development Corporation
Page 2 of 5Version 8.0, 22 August 2008
ii.
 
Applicant must submit complete information i.e Cover letter,Application form, Lampiran C and supporting documents (brochures,catalogues or photos of equipment).vi.
 
In reviewing the application, the Committee will also determine theavailabilityavailabilityavailabilityavailability of such equipment in the local marketlocal marketlocal marketlocal market. If the Committeefinds that the equipment can be sourced locally, that particularequipment may not be recommended for approval. Applicant is alsoentitled to a sales tsales tsales tsales tax exemptionax exemptionax exemptionax exemption if the IT/multimedia equipment ispurchased from a local manufacturerlocal manufacturerlocal manufacturerlocal manufacturer.DURATION OF EXEMPTIONDURATION OF EXEMPTIONDURATION OF EXEMPTIONDURATION OF EXEMPTION4.
 
Exemption can be considered for a period of up to two (2) years from thedate of application received by MDeC. Application for extension of durationmust be made prior to the expiry of the exemption approval period andapplicants are advised to submit the application at least 1 (one) monthbefore the expiry date.PROCEDURESPROCEDURESPROCEDURESPROCEDURES5.
 
Applicants are required to ensure completecompletecompletecompleteness and accuracyness and accuracyness and accuracyness and accuracy of theApplication Form and Lampiran C. Normally, in view of technicalitiesinvolved, applicants will engage a freight forwarder to assist in completingthe Lampiran C. Please provide description of the equipment in relation tothe MSC Malaysia-approved activities under the ‘Remarks’‘Remarks’‘Remarks’‘Remarks’ column in theLampiran C. We regret that incomplete applications will be returned.6.
 
The completedcompletedcompletedcompleted Application form andApplication form andApplication form andApplication form and Lampiran CLampiran CLampiran CLampiran C together with a CCCCoveroveroveroverletterletterletterletter of your intent should be submitted to MDeC, attention to theFacilitation Department. Please refer to the address at the end of thisdocument.7.
 
Upon receiving the completed documents, MDeC will take not more than 2222working daysworking daysworking daysworking days to do the necessary assessment and review on thecompleteness of the application. MDeC will ensure that the equipment isfor the operational use of the MSC Malaysia-approved activities as detailedin your business plan during your application for the award of MSCMalaysia-status previously.8.
 
Once the application is deemed satisfactory, MDeC will issue anAcknowledgment Letter within the stated 2 working days. This letter statesthat the applicant’s particular application for duty-free importation has beenreceived by MDeC pending Committee’s review and Ministry of Finance’sapproval. We will inform applicant via phone/e-mail to collect theAcknowledgment Letter from our office.
 
Multimedia Development Corporation
Page 3 of 5Version 8.0, 22 August 2008
9.
 
In urgent cases such as when the imported equipment have arrived at theport in Malaysia, applicant can use this Acknowledgment Letter coupledwith a Bank Guarantee to Royal Customs Department of Malaysia (to thetotal amount of duties and sales tax) to clear the equipment first. Applicantcan apply for the Bank Guarantee through their current arrangement withfinancial institutions. Bank Guarantee must be made out to ‘Ketua PengarahKastam Malaysia’.10.
 
Application will be tabled in a special committee meeting which normallyconvenes twicetwicetwicetwice aaaa monthmonthmonthmonth in MDeC for a decision. Once the decision ismade, Ministry of Finance (“MOF”) will issue an official letter addressed tothe applicant. Normally, the whole process, fromNormally, the whole process, fromNormally, the whole process, fromNormally, the whole process, from companycompanycompanycompany’s submission to’s submission to’s submission to’s submission toMOF’s decision, takesMOF’s decision, takesMOF’s decision, takesMOF’s decision, takes 2222 totototo 3 working3 working3 working3 working weeks.weeks.weeks.weeks. MDeC will obtain the officialletter on applicant’s behalf and subsequently inform applicant via phone/e-mail to collect from us.11.
 
If the application is approved, applicant can claim the Bank Guaranteewhich had been submitted earlier to clear the equipment from RoyalCustoms Department of Malaysia, or if the equipment has not been clearedyet, applicant may proceed to do so using the official MOF letter. We adviseapplicant to check through the list of equipment approved by the MOF sincethere are possibilities that some equipment may be disapproved. In thiscase, the applicant will have to bear the duties of the disapprovedequipment.ADDITIONAL INFORMATIONADDITIONAL INFORMATIONADDITIONAL INFORMATIONADDITIONAL INFORMATION12.
 
Please be advised that any communication device, which is connected toconnected toconnected toconnected tothe public networkthe public networkthe public networkthe public network, must obtain approval from SIRIM Berhadapproval from SIRIM Berhadapproval from SIRIM Berhadapproval from SIRIM Berhad (formerlyknown as Standards and Industrial Research Institute of Malaysia). Approvalfrom SIRIM could either be for the Import Permit, Type Approval or both. Ineither case, it must be acquired before applicant is allowed to clear theequipment from Royal Customs Department of Malaysia. Enquiriesregarding this matter can be made to SIRIM Equipment Testing Section, tel:603-5544 6949.13.
 
‘Apparatus Assignment’‘Apparatus Assignment’‘Apparatus Assignment’‘Apparatus Assignment’ from Malaysia Communication and MultimediaCommission (“MCMC”) is required for equipment/devices that transmit atcertain ranges of spectrum frequency. Enquiries regarding this matter can bemade to, tel: 603-8688 8000.14.
 
Please be informed that official letters from MOF are sensitive documentsand 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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