Guidelines to Apply for Export License For Controlled Commercial Products

Under Customs Orders

INTRODUCTION

1.
2. The purpose of these guidelines is to explain the conditions and procedures that need
to be complied with by companies that wish to apply for Export License of commercial
products controlled under the Customs Orders 2008 (Prohibition of Export), Customs
Act 1967.
3. Products listed under the Customs Orders are cement, roofing tiles, gravel stone, mining
product, chemical product under the Chemical Weapon Convention (CWC), iron steel
and food products.

CONDITIONS AND PROCEDURES FOR APPLICATION

1. Companies that are eligible to apply need to be registered with the Companies Commission
of Malaysia.
2. How to apply
Companies need to submit the Application Form together with:

1. Customs Form K2 .
2. Memorandum and Article of Association (M & A).
3. Form 24 : Information of Shareholders.
4. F orm 49 : Information of Directors, Managers and Company Secretary.
M&A, Forms 24 and 49 are required for first time application.
3. Supporting Documents
Other documents that need to be enclosed with the Application Form for each
particular product are:

i. Cement
• Sales Invoice.
ii. Roofing Tiles
• Sales Invoice.
• sample of product.
iii. Gravel Stone
• Approval Letter from the Land and District Office.
• Approval Letter from the State Mining Department for exportation
of silicon sand.
• Original Permit (Form 4C) from the respective State Land and
District Office.
 • sales Invoice.
• sample of product.
iv. Mining Product
• Approval Letter from the State Mining Office.
• Record of exportation.
• Sales Invoice.
• Sample of products.
v. Chemical Product under the Chemical Weapon Convention (CWC)
• Sales Invoice.
vi. Iron & Steel
• Long Products Iron
• Sales Invoice and Packing List.
• Scrap Iron
All scrap iron are allowed for export except aluminum scrap and iron scrap.

• Manufacturing License ( ICA 1975).

• Business License for Scrap Items from Royal Malaysian Police
Department.
• Sales Invoice and Packing List.

• Food products
• Palm Oil
• License issued by Malaysia Palm Oil Board
(MPOB).
• Sales Invoice.
• Milk
• Purchase Invoice from local or foreign milk
manufacturer (for trading companies)
• Sales Invoice and Packing List
• Other Sugar (other than refined sugar)
• sample of sugar.
• Sales Invoice.
4. Customs Form ( K2 ) is available at:
Syarikat Percetakan Nasional (M) Bhd.,
Jalan Chan Sow Lin 50554 Kuala Lumpur

Tel. : 03-92212022
Fax. : 03-92220690
5. Submission of Application

Completed Application Form should be submitted to:

Ministry of International Trade & Industry (MITI)

 Import & Export Control Section
2nd Floor, Block 10,
Govt Offices Complex, Jalan Duta
50622 Kuala Lumpur

Tel.: 03-6203 3022

Fax.: 03-6201 3012

APPROVING AUTHORITY

Secretary General of MITI.

CLIENTS’ CHARTER

Application will be processed within 5 working days (manual application) and 3 working days (online
application) upon receipt of completed application.
EXPORT FLOW FOR BREAK BULK CARGO - (PORT KLANG) Attachment 1b

Shipping Agent/
Shipper/
Forwarding Agent 5 Shipping Agent
& Freight
2 Forwarders a) Receive Shipping 9
Importer & Instruction from FA or Inland Transporter
1a Bank Submit freight shipper
quotation and finalise b) Prepare Bill of Lading a) Pick up goods/
Issue freight charges
c) Prepare IED cargo from
Purchase
8 Exporter
Order/Advise d) Pre advice Port/ Terminal
on LC (if any) Customs b) Pay Port
on cargo booking
Charges
3 PIAs a) Received
electronic K2
Approval of Export b) K2 channeled
Permit (if applicable) by Customs to 10 Terminal Operator
PIA (if
Port Operator/Terminal required)
6 (Warehouse) Port Operator loads
4 c) Receipt of
1b Exporter duty payment cargo on board
Forwarding Agent/ Receive shipment/consignment (if applicable)
Documents Freight Forwarder details through online or EDI
preparation d) Approved and
received K2
- Invoice a) Received
- Packing List
instruction for cargo 11 Shipping Agents
clearance & submit
- Shipping Shipping Instruction 7 Forwarding Agents a) Prepare Bills of
Instruction (if b) Prepare K2 Lading
any) a) Arrange and deliver cargo to
c) Apply for Permit (if b) Submit export
Port/Terminal warehouse
applicable) manifests to
b) Submit application for cargo
d) Submit application delivery Custom/ Port
for cargo delivery to Operator
warehouse & obtain 12 Document readiness
approval
e) DG Declaration (if
dangerous goods)

C: Customs D: Ports &

Terminal 1
B: Inland Transportation &
A: Documents Preparation Clearance
Handling
& Tech Control Handling
No Process Flow Document Process Time Cost

1a Importer issues Purchase Order to Exporter. A Letter of Purchase 2 working days

Credit (LC) advise is issued by the bank (for applicable Order (LC advise)
shipments)
Letter of
Credit
Forwarding
charges:
Exporter prepares commercial Invoice, Packing List & Invoice RM100 –
1 day RM150 per
1b Shipping Instruction (after the order is confirmed) Packing list (document consignment
Shipping preparation) (Based on
* Shipping booking can be done in advance Instruction the volume)
* Shipping Instruction when all details are available Overall – 2 days
2 Submit Freight Quotation under commercial rate and Freight
finalise freight charges with shipper. Quotation A
- Receive and accept booking from shipper.
- Provide shipper with booking confirmation.
Shipping
* Freight Quotation and freight charges can be done in Instruction
advance
3 PIA approves Export Permit (if applicable) Export Based on PIA
Permit client charter

4 a) Forwarding Agent received instruction for cargo Shipping Overall – 2 days EDI
clearance and submit Shipping Instruction Instruction charges:
RM0.88 per
b) Prepare K2 K2
kb.
c) Apply for Export Permit from PIA (if applicable) Export
Permit
d) Forwarding Agent submit application for cargo
delivery to warehouse/obtain approval
e) DG Declaration (if dangerous goods) DG
Declaration 1 hour (RM5 per 2
* Export Permit can be done in advance
declaration)
No Process Flow Document Process Time Cost

5 Shipping Agent
a) Receive Shipping Instruction Shipping
Instruction RM110 per
b) Shipping Agents Prepare Bill of Lading
B/L
c) Prepare Integrated Export Document (IED)
IED
d) Pre-advice Port/Terminal on cargo booking 1 hour

6 Port Operator receive shipment/consignment details as Export pre- 5 min No cost B

export pre-advise through online or EDI advise details

7 a) Arrange and deliver cargo to Port/Terminal IED No cost

warehouse

b) Submit application for cargo delivery

1 hour

3
No Process Flow Document Process Time Cost

8 a) Customs receives electronic K2 declaration K2 2 – 5 min No cost

(paperless transactions only) Export Permit

b) Electronic K2 is channeled by Customs to PIAs if

K2
required.
Export Permit No cost C
Inspection or endorsement of permit by PIA (if
applicable)
2 – 5 min EFT
c) Payment of duty (if applicable), either by Electronic charges : RM
Fund Transfer (EFT) or manual 15.00 per B/L
Bank Draft No cost
10 – 15 min
Cheque
d) Approved/released K2 from Customs.

K2
9 Inland Transporters D
a) Pick up goods/cargo from Exporter IED 30 minutes Port charges:
b) Pay Port Charges Load List as per tariff

10 Port Operator loads cargo onboard IED 1 hour

Load List
11 Shipping Agent send electronic manifest (e-manifest) to e-manifest Within 7 days RM30 per B/L
Customs (within 7 days after vessel departure)
12 Document readiness K2 30 min Forwarding
charges: 4
IED
RM100 –
Load List RM150
Legend (Export Flow):

• PIAs – Permit Issuing Authorities

• K2 Form – Customs declaration form for export
• IED – Integrated Export Document
• * EFT – * Electronic Fund Transfer (applicable to only 8 banks)
*Participating banks: 1-8
1. Maybank;
2. CIMB Bank;
3. PBB;
4. RHB Bank;
5. EON Bank;
6. Alliance Bank;
7. Affinbank; and
8. Ambank.

5
 EXPORT FLOW FOR BARTER TRADE (PORT KLANG)

PIAs
PIA
Importer & Approval of Forwarding Agent
Bank Export Permit Shipping Agent Inspection or
6 endorsement of Pay port charges to
Issue (if applicable) Issue Shipping 11
Purchase permit (if required) LPK
9 Instruction to 17
Order / Jetty/port Pay handling
1 Operator charges to Jetty/port
Advise on LC Forwarding Agent
(if applicable) Operator
Received
3 instruction for
Transporter Customs Jetty/port Operator
cargo clearance
4 Apply for Permit Received Receive K2 Load cargo into
10 request of 18 local craft
(if applicable) 12 electronically
Exporter transport from
5 Prepare and FA Receive printed K2
Documents submit K2
preparation Pick up cargo 13 & supporting
electronically to documents
2 -Invoice SMK-DNT from exporter
Assessment of Shipping Agent
premise and
7 Book space
-Shipping deliver to Jetty/ 14 goods
through SA 19 SA submit manifest
Instruction port Operator’s within 7 days
Physical inspection
Request for warehouse. 15 if necessary
8 Transport
Approve/Release
16 K2

B : Inland Transportation C: Customs Clearance D: Ports & Terminal

A: Documents Preparation
& Handling & Tech Control Handling 1
No Process Flow Document Process Time Cost

1 Importer issues purchase order to exporter. An LC advise Purchase 2 Working Days No cost
is issued by the bank (for applicable shipments) Order (LC Advise)

Letter of
Credit
2 Exporter prepares commercial invoice (after the order is Invoice 1 Day No cost
confirmed) (Document
Preparation)
Overall – 2 days

3 Forwarding Agent receives instruction from exporter for Shipping Within 1 day No cost A
cargo clearance instruction

4 Forwarding Agent applies for Export Permit from PIA (if Invoice Within 1 day RM30 per
applicable) shipment

•Export Permit can be done in advance

5 Forwarding Agent prepare K2 Form and submit to Invoice 2 days RM30 per
Customs through SMK-DNT Net interface. permit
(FAMA) and
RM35 (EDI
charges)
6 PIA approves export permit (if applicable) Export 2 days RM35 (EDI
permit charges)

2
4
No Process Flow Document Process Time Cost

7 Forwarding Agent books space through Shipping Agent Loading * No cost

Instruction
8 Forwarding Agent submits request of transport to No cost
A
transport company
9 Shipping Agent issues shipping instruction to Jetty/port Shipping No cost
Operator instruction

10 Transport company receives request of transport from An average B

Forwarding Agent for 10 ton:
Rm8/km

Transport company picks up cargo from Exporter’s

premise and delivers to Jetty/port Operator’s warehouse
11 The relevant Government Agency will carry out cargo Export Permit No cost
inspection or endorsement of the export permit if required

12 Customs computer system automatically processes & - No cost C

registers K2 and sends response back to forwarding
agent with registration number

13 Customs receives Form K2, invoice and export permit (if K2 No cost
applicable) for Customs clearance.
Invoice
Export Permit
* 7-13 activities : Within 1 day

3
No Process Flow Document Process Time Cost

14 Assessment of goods by Senior Customs Officer which K2 5-20 mins No cost

includes the following processes :
Invoice
a) Verification of particulars declared against
supporting documents; Export
Permit
b) Instruction for physical inspection if necessary;
c) Classification/Valuation.
C
15 Physical inspection if necessary will be carried out in K2 30 mins No cost
Jetty/port Operator’s warehouse by Customs officer
Invoice
and in the presence of Forwarding Agent.

16 Senior Customs Officer grants approval/release to the K2 hardcopy 2 – 5 mins No cost

K2 in SMK and hardcopy.
K2 SMK

17 Forwarding Agent pays port charges to LPK and K2 1 min. Port Charges :
handling charges to Jetty/port Operator RM 2.00/
Monthly bill
tonnes

18 Jetty/port operator verifies processed K2 and after K2 45 minutes to 1 No cost

tallying proceed to load cargo onto the local craft. hour per
Tender
container D
Ships

19 Shipping agent submits export manifest manually to Manifest 8 hours No cost

Customs within 7 days after local craft departure.
Legend (Export Flow):

1. SA – Shipping Agent
2. FA – Forwarding Agent
3. LC – Letter of Credit
4. PIA – Permit Issuing Agencies
EXPORT FLOW FOR DRY BULK CARGO - (PORT KLANG) Attachment 2b

Shipping Agent/
Shipper/
Forwarding Agent 5 Shipping Agent
& Freight
2 Forwarders a) Receive Shipping 9
Instruction from Forwarding Agent
Submit Freight Forwarding Agent or
Quotation and shipper
a) Instruct inland
finalise freight b) Prepare Bill of Lading transporter to
charges pick up goods/
1a Exporter c) Prepare IED 8
Customs cargo from
d) Pre advice Port/ Terminal Exporter
Documents on cargo booking
a) Pay Port
preparation 3 PIAs a) Received
Charges
electronic K2
- Invoice
Approval of Export b) K2 channeled
- Packing List Permit (if applicable) by Customs to 10 Terminal Operator
- Shipping PIA (if
Port Operator/Terminal required)
Instruction (if 6 (Warehouse) Port Operator loads
any) 4 c) Receipt of duty
payment (if cargo on board
Forwarding Agent/ Receive shipment/consignment applicable)
Freight Forwarder details through online or EDI
d) Approved and
received K2
a) Received
instruction for 11 Shipping Agents
cargo
clearance & 7
submit Forwarding Agents a) Prepare Bill of
Shipping Lading
a) Submit application for cargo
Instruction b) Submit export
delivery
b) Prepare K2 b) Arrange and deliver cargo to manifests to
Port/Terminal warehouse Custom/ Port
c) Apply for Operator
Permit (if
applicable)
d) DG
Declaration (if
dangerous
goods)

C: Customs D: Ports &

Terminal 1
B: Inland Transportation &
A: Documents Preparation Clearance
Handling
& Tech Control Handling
No Process Flow Document Process Time Cost

1a Exporter prepares commercial Invoice, Packing List -Invoice 1 day No cost

& Shipping Instruction (after the order is confirmed) (document
-Packing List
preparation)
-Shipping
* Shipping booking can be done in advance instruction
Overall – 2
* Shipping Instruction when all details are available
days

2 Submit Freight Quotation under commercial rate and -Freight 1 day (pre- No cost
finalise freight charges with shipper. Quotation arrival
- Receipts and accept booking from shipper arrangement)
-Shipping A
- Provide shipper with booking confirmation Instruction
* Freight Quotation and freight charges can be done
in advance
3 PIA approves Export Permit (if applicable) -Export 1- 5 working PIAs own cost
Permit days (details as
attachment)
4 a) Forwarding Agent receipts instruction for cargo -Shipping Overall – 2 EDI charges:
clearance in accordance to Shipping Instruction days RM30
Instruction
-K2
b) Prepare K2 Form -Export RM5 per DG
c) Apply for Export Permit from PIA (if applicable) Permit declaration
d) DG Declaration (if applicable)
-DG RM1 per metric
1 hour
* Export Permit can be done in advance (pre-arrival Declaration tonnes
arrangement)
(negotiable 2
depend on the
volumes
No Process Flow Document Process Time Cost

5 Shipping Agent
a) Receipts Shipping Instruction from forwarding -Shipping RM110 –
agent Instruction 1 hour RM130 per
Bill of
b) Shipping Agents Prepare shipping note
Lading
c) Pre-advice Port/Terminal on cargo booking

B
6 Port Operator receives shipment/consignment details as -Export pre- 5 min No cost
export pre-advise through online or EDI advise details

7 Forwarding Agent

a) Submit application for cargo delivery -IED 1 hour No cost

b) Arrange and deliver cargo to Port/Terminal warehouse

3
No Process Flow Document Process Time Cost

8 a) Customs receipts electronic K2 declaration -K2 2 – 5 min No cost

(paperless transactions only) -Export Permit

b) Endorsement of permit by PIA No cost

2 – 5 min EFT
c) Payment of duty (if applicable), either by
C
charges : RM
Electronic Fund Transfer (EFT) or manual 15.00 per B/L
-Bank Draft (10 – 15 min) No cost
-Cheque

d) Approved/released K2.

-K2
9 Forwarding Agent :
-IED
Arrange inland transporters to: -Load List
a) Pick up goods/cargo from Exporter 30 minutes As per tariff D

a) Forwarding agent to pay Port Charges

10 Port Operator loads cargo onboard -IED
-Load list As per tariff
11 a) Shipping agent prepare and issue Bill of Lading -e-manifest 10 minutes RM30 per B/L
b) Shipping Agent send electronic export manifest
(e- manifest) to Customs and Port Operator
4
Legend (Export Flow):

• PIAs – Permit Issuing Authorities

• K2 Form – Customs declaration form for export
• IED – Integrated Export Document
• * EFT – * Electronic Fund Transfer (applicable to only 8 banks)
*Participating banks: 1-8
1. Maybank;
2. CIMB Bank;
3. Public Bank Berhad;
4. RHB Bank;
5. EON Bank;
6. Alliance Bank;
7. Affinbank; and
8. Ambank.

5
 II. EXPORT FLOW FOR FULL CONTAINER LOAD (PORT KLANG)

Shipping Agent/
Shipping Agent
Non Vessel 5 a.) Issue of Shipping note & PIA
Operating CMO (if required)
Common Carrier 16 Inspection or
Freight Forwarder/
b.) Pre-advise Port & Depot
endorsement Ship
Operator 21
Forwarding Agent of permit (if
Importer & c.) Release containers to required) Port Operator
Bank 2 Submit freight forwarding agent or shippers loads container
quotation and on to ship
1 Issue finalise freight
Purchase charges 22
Order /
Exporter Customs
Advise on Depot
LC (if
8 Stuff & seal
13 23 24
required) PIAs 7 a.) Release container Received K2 form
empty container - SMK-DNT
3 Approval of 14 MITI /
b.) Update K2 passed to PIA
Export Permit
details to port (if applicable) Chambers
(if applicable)
system & 15 K2 vetted by Risk 25Approval of
Shipping agent Assessment Preferential /
System to identify
Port Operator Non-
Exporter High Risk Cargo Preferential
11 Received 17 Non High Risk COO (if
1 Documents shipment/ Cargo, automatic required)
preparation Haulier consignment approval is given
-Invoice
Forwarding Agent 6 details
Received RFD & 18 Receipt of Duty
-Packing
4 a.) Received CMO 12 Verifies booking Payment (if
List instruction for cargo information applicable)
9 Haulier Prepare CDA
clearance Release of cargo
-Shipping Pick up of empty 19
Instruction b.) Prepare K2 (shipping depot) & Update to Port
-Permit c.) Apply for Permit full container Operator on K2
(if applicable) (exporter warehouse) 20 release
Update seal number
10 to port system

PROCESS INVOLVING NSW

SYSTEM
C: Customs D: Ports &
1
B: Inland Transportation &
A: Documents Preparation Clearance Terminal
Handling
& Tech Control Handling
No Process Flow Document Process Time Cost

1 Importer issues purchase order to exporter. An LC advise is Purchase 2 Working Days

issued by the bank (for applicable shipments) Order (LC Advise)
Letter of
Credit
Exporter prepares commercial invoice, packing list &
shipping instruction (after the order is confirmed)
Invoice 1 Day
*Shipping booking can be done in advance Packing list (Document
*Shipping instruction when all details are available Shipping Preparation)
instruction
Overall – 2 days
A
2 Submit freight quotation and finalise freight charges with Freight
shipper. Quotation 1 Day
- Receive and accept booking from shipper. Shipping
- Provide shipper with booking confirmation. instruction
*Freight quotation and frieght charges can be done in
advance
3 PIA approves export permit (if applicable) Export No cost
permit

4 a.) Exporter books container with shipping agent through Export Overall – 2 days
forwarding agent permit
b.) Prepare K2 Form
c.) Apply for Export Permit from PIA (if applicable)

2
4
* Export Permit can be done in advance
No Process Flow Document Process Time Cost

5 a.) Shipping agent sends Container Movement Order CMO 2 hours

(CMO) to Forwarding Agent,
(Documentation
b.) Booking pre-advise is sent to port operator and depot subject to office
operator hours. Operation is
24 hrs)
c.) Release containers (depot location, size/type and volume)
to forwarding agents and shippers.
6 Forwarding agent prepares Request For Delivery (RFD) RFD 24 hours
and submits it to haulier/transport company together with
CMO (Subject to normal
CMO (24 to 48 hours before pick up date for haulier to
Office hours if other
plan). Depots release empty container to haulier.
circumstances, 3
days )
B

7 a.) Haulier picks up empty container & delivers it to nil 24 hours

exporter’s premises
(Subject to normal
b.) Depot updates container number to booking in Port Office hours if other
system and shipping agent. circumstances, 3
days )

8 Exporter stuffs the container, seals and informs haulier to nil 1 day
pick up the container

3
No Process Flow Document Process Time Cost

9 Haulier picks up stuffed container and delivers it to port 24 hrs

Haulier prepare Container Dispatch Advice (CDA) Form
CDA Form

10 Update seal number to port system nil Overall under 24

hrs

11 Port Operator receive shipment/consignment details as nil 1 mins B

export pre-advise through online or EDI

12 Port operator verifies the container details and accepts Export pre- 5 mins
container at gate. The container is stacked in the advise details
container yard based on declared export vessel
No Process Flow Document Process Time Cost

13 FA submits electronic K2 form (through SMK-DNT), ( it K2 form 1 hr

takes around 1 hour to prepare a K2 for 10 items, transmit
and receive customs response with registration number)

14 K2 is channeled by Customs to PIAs if required

Inspection or endorsement of permit by PIA (if applicable) 8 hrs (if

inspection
required)
15 K2 declaration is electronically processed by Customs
after approval is given by PIA
C

16 K2 declaration is vetted by Risk Assessment System and

‘High Risk’ Cargo will be identified for control procedure
(documentary check, inspection by scanning or physical
inspection)
17 For non-high risk cargo, automatic approval is given

18 Payment of duty, where applicable is received

electronically
No Process Flow Document Process Time Cost

19 Release is given automatically after full payment of Duty

is received by Customs

20 K2 release information is transmitted to Port Operator by

Customs C
Note: Total
time for C – 1
day average –
Customs (10-15
minutes)
21 Port operator receive electronic release for release of GCS Release 30 mins
container from GCS/SMK or Port system release based
K2 Document
on hard-copy K2 (if, necessary)

22 Shipping agent sends export manifest to Custom (within 7 Manifest 5 days

days after vessel departure) and received by Customs
No Process Flow Document Process Time Cost

23 Shipping agent advises shipping & freight Freight Invoice

charges to shipper and/or forwarding agents

24 Forwarding agent pays shipping & freight Bill of Lading

charges on behalf of exporter & collect B/L to
include Shipper /Forwarding agents
D

25 Exporter applies for Certificate of Origin if Certificate of

applicable: Origin
I)preferential (e.g. CEPT) from MITI - Invoice / PL / BL/
II)non-preferential from Chamber of Commerce K2 required when
applying for CO

* Time taken for processes 22 to 25 are not measured as only internal processes
once ship has departed
Legend (Export and Import Flow):
• PIAs - Permit Issuing Authorities
• CMO- Container Movement Order
• RFD- Request For Delivery
• K2 Form- Customs declaration form for export
• K1 Form- Customs declaration form for import
• DNT- Dagang Net Technologies (e-service provider)
• SMK-DNT- Electronic data interchange system used by
Customs for export declaration
• CEPT- Common Effective Preferential Tariff
• FMM- Federation of Malaysian Manufacturers

8
EXPORT FLOW FOR LIQUID BULK CARGO - (PORT KLANG) Attachment 1

2 Ship Broker

1a Importer
Bank
& Submit freight
quotation and finalise
freight charges
Issue
Purchase
Order/advise
on LC (if any)
3 5
Forwarding Agent/ Shipping Agent
Freight Forwarder 8
Pre advice Port/Terminal on 7
cargo booking Customs Shipping Agent
a) Received instruction
for cargo clearance/ a) Received K2 - SMK
submit Shipping a) Prepare Bill
Instruction c) Receipt of Duty of Lading
Payment (if
Exporter b) Prepare K2 / b) Submit cargo
1b Integrated Export
applicable)
Electronic
Documents d) Approved and Export
Documents
preparation
6 received K2 Manifests to
c) Apply for Export Exporter Custom
-Invoice Permit (if applicable)
Deliver cargo to Port/
-Shipping Terminal
Instruction (if
any)
4 PIAs

Approval of Export
Permit (if
applicable)

C: Customs D: Ports &

B: Inland Transportation &
A: Documents Preparation Clearance Terminal
Handling
& Tech Control Handling
No Process Flow Document Process Time Cost

1a Exporter prepares commercial Invoice, Shipping -Invoice 1 day No cost

Instruction (after the order is confirmed and financial (document
-Shipping
arrangement is completed) preparation)
Instruction

* Shipping booking can be done in advance. Overall – 2

days
* Shipping Instruction when all details are available.

2 Ship Broker submit Freight quotation and finalise freight -Letter of Pre- No cost
charges pre-arrange with Exporter. Offer arrangement A
-Contract of
Freightment
3 a) Forwarding Agent receipts instruction for cargo -K2 Overall – 1 Forwarding
clearance in accordance to Shipping Instruction. days charges:
-IED
RM300 –
b) Prepare K2 and Integrated Export Document (IED). -Export Permit RM600 per
c) Apply for Export Permit from PIA (if applicable). consignment
(negotiable)

* Export Permit can be done in advance.

4 PIAs approves Export Permit (if applicable). -Export Permit 1- 3 working PIAs own
days (details as cost
attachment)
*usually (blanket approval) pre-approval applicable for 1 – 2 years)

2
No Process Flow Document Process Cost
Time
5 Shipping Agent pre-advice Port/Terminal on cargo -Notice of Arrival Pre- No cost
booking. arrangement

6 Delivery by Exporter to Port/Terminal. -Delivery Order Pre- Exporter B

arrangement cost

7 a) Customs receipts online K2 declaration and -K2 2 - 5 min No cost

supporting documents from Forwarding Agent (if
-Invoice,
required).
Supporting documents: Invoice, IED and Surveyor -IED
Quantity Report (applicable to parallel transactions -Export Permit
only – not applicable in paperless).
-Surveyor
Quantity Report

b) Payment of duty (if applicable), either by Electronic RM15 per

Fund Transfer (EFT) or manual. BL
C
No cost
c) Approved and receipts K2. K2 release information -Bank draft Average 1 day
is transmitted to Port Operator by Customs.
-Cheque total time (10 –
15 min.)

-K2
8 a) Shipping Agent prepare Bill of Lading (BL). -BL RM110 per
BL

EDI D
b) Shipping Agent send Electronic Export Manifest to -e-Manifest 1 hour
charges:
Custom. 3
RM30 per
BL
Legend (Import Flow):
• PIAs – Permit Issuing Authorities
• K2 – Customs declaration form for export
• IED – Integrated Export Document
• * EFT – * Electronic Fund Transfer (applicable to only 8 banks)
*Participating banks: 1-8
1.Maybank;
2.CIMB Bank;
3. Public Bank Berhad;
4.RHB Bank;
5.EON Bank;
6.Alliance Bank;
7.Affinbank; and
8.Ambank.

4
 EXPORT FLOW FOR LCL CARGO (PORT KLANG) console cargo Attachment 1A
Shipping Agent/ Freight Forwarder
Freight Forwarder/
CFS/Warehouse Operator
6a Book container through
Forwarding Agent SA PIA 10 Receive instruction from FF
Inform CFS/Warehouse
Importer & 6b operator on cargo 8 Inspection or
Receive K2 from FA and LCL
10a cargo from transporter
consolidation
Bank 2
endorsement of
10b Cargo consolidation
Submit freight Prepared IED (copy to permit (if required)
Issue quotation and 6c FA/ Warehouse Apply for drayage
1 Purchase finalise freight operator/SA) 10c
Order / charges
Advise on LC
(if required) Port Operator
PIAs Depot 11 Move container to container
Customs yard
3 Approval of Release empty
Export 7 container to CFS/ Received K2 form -
13 Load Container to vessel
Permit (if Warehouse Operator 9 SMK-DNT
applicable)
Update details to port K2 passed to PIA (if
system & Shipping 9a applicable)
Exporter 7a agent Shipping Agent/
K2 vetted by Risk
Assessment System to
Freight Forwarder
1a Documents Forwarding Agent 9b identify High Risk Cargo
preparation
4 Received instruction
12 Main FF declare ZB1 (Export)
Receipt of Duty
-Invoice for cargo clearance 9c Payment (if applicable) SA submit manifest (OBL)
-Packing 4a Transporter 14 within 7 days
Submit K2 Release of cargo
List electronically to SMK 9d FF submit manifest (HBL)
Received request of
Update to Port Operator 15 within 7 days
-Shipping Issue Shipping on K2 release
Instruction 4b Instruction to FF/SA
5 transport from FA 9e Advises shipping/freight
16 charges
-Apply for Arrange for transport Pick up cargo from
Permit (if
4c 5a exporter premise and FF pays shipping & freight
applicable) deliver to CFS/ 17 charges and collect OBL
Warehouse.
-Apply for
Certificate
of Origin (if MITI/Chambers
applicable)
18 Approval of Preferential /Non-
Preferential COO (if required)

B: Inland Transportation & C: Customs Clearance D: Ports & Terminal

A: Documents Preparation
Handling & Tech Control Handling 1
No Process Flow Document Process Cost
Time
1 Importer issues purchase order to exporter. An LC advise - Purchase 2 Working
is issued by the bank (for applicable shipments) Order Days (LC
Advise)
- Letter of
Credit

1a Exporter prepares commercial invoice, packing list & - Invoice 1 Day

shipping instruction (after the order is confirmed) (Document
- Packing list Preparation)
- Shipping
-Shipping booking can be done in advance instruction
Overall – 2
-Shipping instruction when all details are available days
A
- Apply for Export Permit from PIA (if applicable) – can be
done in advance.
- Export Permit

- Exporter applies for Certificate of Origin if applicable:

- COO
- Invoice / PL /
i. preferential (e.g. CEPT) from MITI
BL/ K2
required when
ii. non-preferential from Chamber of Commerce applying for
COO
2 Submit freight quotation and finalise freight charges with Freight
shipper. Quotation
1 Day
- Receive and accept booking from shipper. Shipping
- Provide shipper with booking confirmation. instruction
*Freight quotation and frieght charges can be done in 2
advance 4

3 PIA approves export permit (if applicable) Export permit No cost

No Process Flow Document Process Time Cost

4 Forwarding agent receives instruction from exporter Export Overall – 2 days No cost
for cargo clearance permit
4a. Prepare K2 Form and submit to Customs through Invoice Response Time : EDI charges:
SMK-DNT Net interface
Packing list
5- 20 min RM 0.88 per KB A
RM30
4b. Issue shipping instruction to Freight Forwarder or 20 min
Shipping Agent
4c. Forwarding Agent arranges for transport by submit 10 min
ting request of transport to transport company

5 Freight Forwarder books container through Shipping 5 min

Agent
B
5a. Freight Forwarder informs CFS/Warehouse operator 10 min
on cargo consolidation

5b. Freight Forwarder prepares IED with copy to 20 min

Forwarding Agent, CFS/Warehouse operator and
Shipping Agent
(4 copy of IED)
6 Transport company receives request of transport from 10 min
Forwarding Agent
6a. Lorry driver picks up cargo from Exporter’s premise 4 hours
and delivers to designated CFS/Warehouse.

3
No Process Flow Document Process Cost
Time

6b. F.F Inform CFS/Warehouse operator on cargo

consolidation

6c. F.F Prepared IED (copy to FA/ Warehouse operator/

SA)

7 Haulier picks up empty container from Depot & delivers 2 hours

it to CFS/Warehouse

7a Depot updates container number to booking in Port 10 min

system and shipping agent. C

8 The relevant government agency will carry out cargo K2 8 hrs (if
inspection or endorsement of the export permit if inspection
Export Permit
required. required)

9 Customs receives printed K2 declaration and K2 2-5 min No Cost

supporting documents from Forwarding Agent.
Invoice,
Supporting documents : invoice, packing list and IED.
Packing List
(Applicable to parallel transactions only – not
applicable in Paperless) IED
Export Permit

9a. K2 is channeled by Customs to PIAs if required. K2 2 – 5 min No cost

Inspection or endorsement of permit by PIA (if Export Permit
applicable)
No Process Flow Document Process Cost
Time

9b. K2 declaration is vetted by Risk Assessment System K2 Electronic : Nil No Cost

and ‘High Risk’ Cargo will be identified for control Manual : 5 min
procedure (documentary check, inspection by scanning
or physical inspection)
9c. Payment of duty or cess, where applicable , either by K2 EFT : 20- 60 EFT charges :
Electronic Fund Transfer or manual min RM 8.00 per
Bank draft
transaction
Cheque

9d. Approval/Release is given automatically after full K2 2-5 min No Cost

payment of Duty is received by Customs COR (Paperless)

9e. K2 release information is transmitted to Port Operator - 30 min No Cost

by Customs

10 CFS/Warehouse Operator receives instruction from 10 min

Forwarding Agent on consolidation of LCL cargo
D
10a. Receive processed K2 from Forwarding Agent and LCL 2 hours
cargo from lorry driver.

10b. Consolidate cargo and stuff into container. 2 hours

10c. Apply for drayage Drayage 5 min

Request Form
11 Port operator makes arrangement to move container 30 min
from CFS/Warehouse to container yard

12 Main Freight Forwarder declares ZB1 to Free Zone ZB1 (export)

Authority (ZB1 submitted electronically, paperless)
No Process Flow Document Process Cost
Time
13 Port Operator loads container to vessel Load list 10 min

14 Shipping agent submits export manifest Manifest 5 min

(OBL) electronically to Customs within 7 days
after vessel departure.
15 Freight Forwarder submits export manifest Manifest 5 min
(HBL) electronically to Customs within 7 days D
after vessel departure.
16 Freight forwarder advises shipping & freight Freight Invoice 10 min
charges to shipper and/or forwarding agents

17 Freight forwarders pays shipping & freight Bill of Lading 10 min

charges and collect OBL.

Freight forwarders will issue their HBL to

exporters or Forwarding Agent
18 Approval of Preferential /Non- Preferential Certificate of 30 min
COO (if required) Origin

* Time taken for processes 14 to 18 are not measured as only internal processes
once ship has departed
Legend (Export Flow):

1. LCL- Lesser than Container Load

2. LC – Letter of Credit
3. PIA – Permit Issuing Agencies
4. SA – Shipping Agent
5. FF – Freight Forwarder
6. CFS – Container Freight Station
7. SMK – Sistem Maklumat Kastam
8. OBL – Ocean Bill of Lading
9. HBL – House Bill of Lading
10. COO – Certificate of Origin
11. IED – Integrated Export Document
EXPORT FLOW RO-RO
(PORT KLANG)

Shipping Agent Forwarding Agent Appointed

Customs Stevedores by
2 Submit freight
5 7 a) Submit Shipping note & IED to Shipping Agents
Received K2 form
Importer & quotation and finalise
- SMK-DNT yard operator 10
Bank freight charges loads vehicles on to
Approved & b) Arrange transport to deliver ship
1 Issue 2a
Prepare & issue 6 Release of K2 vehicles to yard before vessel
Purchase shipping note arrival
Order / Make Payment of storage
Advise on 11 charges
LC (if
required)
Forwarding Agent

a.) Received
Yard Operator
instruction for cargo 8
3 clearance a) Received Shipping notes and
Shipping Instruction.
b.) Prepare K2
Exporter b) Received delivery list 7 days
before vessel arrival /IED
Documents 1day before vessel arrival
1a preparation c) Prepare invoice for storage
-Invoice charges
-Packing
List
-Shipping
Instruction 4 PIA s
9 Shipping Agent
-Apply for Approval of Export
Permit (if Permit (if a) Received Shipping
applicable) applicable) Instruction
b) Prepare & release B/L
collect freight/ doc fee

D: Ports &
A: Documents Preparation B: Customs C: Inland Transportation & Terminal
Clearance & Tech Control Handling Handling
1
No Process Flow Document Process Time Cost

1 Importer issues purchase order to exporter. An LC advise is Purchase 2 Working Days

issued by the bank (for applicable shipments) Order (LC Advise)
Letter of
Credit
Exporter prepares commercial invoice, packing list & shipping
1a
instruction (after the order is confirmed)
Invoice 1 Day (Document
*Shipping booking can be done in advance Packing list Preparation)
*Shipping instruction when all details are available Shipping
instruction
Overall – 2 days
Apply for Export Permit from PIA (if applicable)
* Export Permit can be done in advance
A
2. SA Submit freight quotation and finalize freight charges with Freight
shipper. Quotation
- Receive and accept booking from shipper. Shipping
- Provide shipper with booking confirmation. instruction
*Freight quotation and freight charges can be done in advance

SA Prepares and issue shipping note

Shipping
2a. note 30 min

3 a.) Exporter books container with shipping agent through Export Overall – 2 days
forwarding agent permit
b.) Prepare K2 Form

4 PIA approves export permit (if applicable) Export

permit
No Process Flow Document Process Time Cost

5 FA submits electronic K2 form (through SMK-DNT), ( it takes K2 form 30 min – 1 hour 0.88/kb
around 1 hour to prepare a K2 for 10 items, transmit and
receive customs response with registration number)

6 Approved and release K2 K2 10 min. No cost B

7 a) FA will submit book note and IED to terminal operator -Book note & Depending on No Cost
(yard) IED number of vehicles

b) FA will arrange transport to deliver vehicles to yard before -IED 3-5 days before
Trucking/
vessel arrival. vessel arrival
Delivery List Transport tariff
8 a)Terminal Operator (yard) will receive Book Note and -Book Note & C
Shipping Instructions (S.I.) from FA S.I.
Received 1/2 days
b)Yard will receive delivery list 7day before vessel arrival and -Delivery list before vessel
IED 1 day before vessel arrival to prepare cargo to be loaded and IED arrival
on board
-Invoice for
c)Yard operator will prepare invoice for storage charges
storage
No Process Flow Document Process Time Cost

9 a) SA received shipping instruction Bill of Lading 30 mins MYR110 –B/L

b) SA prepare & release BL and collect documentation fee MYR30 – EDI fee

D
10 Port operator loads vehicles on board vessel

11 FA makes payment of storage charges Invoice After vessel Vehicles –

sails
MYR8 per unit/day
Heavy vehicles-
MYR10 per unit/day
Legend (Export and Import Flow):

• PIAs - Permit Issuing Authorities

• IID – Integrated Import Documents
• K2 Form- Customs declaration form for export
• K1 Form- Customs declaration form for import
• DNT- Dagang Net Technologies (e-service
provider)
• SMK-DNT- Electronic data interchange system
used by Customs for export declaration
• FA – Forwarding Agent
• SA – Shipping Agent
List of Products That Require Import and Export Licenses Under MITI

Issuance of Licenses for Import/Export of Items Listed in the Custom Prohibition of Import/Export
Orders Under the Customs Act 1967

Background

The import and the export of goods listed under the Custom Prohibition Act 1967 are controlled:

• To safeguard local manufacturers' interest, health and plant life and the national security of
the country.
• To take into consideration Malaysia 's foreign policies.
• To ensure that there should be adequate supply of essential goods.

The following goods under the Act require an Import license by MITI:

1. Raw Sugar.
2. Other Sugar.
3. Wheat Flour.
4. Milk (for tariff code 0401 30 110 and 2202 90 100 only).
5. Activated Clay and Activated Bleaching Earth.
6. Flat-Rolled Products of Iron or Non-Alloy Steel, of a width of 600mm or more, Hot Rolled, Not
Clad, Plated or Coated.
7. Flat Rolled Products of Iron or Non-Alloy, of a width of 600mm or more Cold-Rolled. (Cold-
Reduced), Not Clad, Plated or Coated.
8. Flat-Rolled Products of Iron or Non-Alloy Steel, of a width of 600mm or more, Clad, Plated or
Coated.
9. Flat Rolled Products of Iron or Non-Alloy, of a width of 600mm or more Cold-Rolled (Cold-
Reduced), Not Clad, Plated or Coated not further worked than Hot Rolled.
10. Flat-Rolled Products of Iron or Non-Alloy Steel, of a width of less 600mm or more, Not Clad
or Coated.
11. Tubes, Pipes and Hollow Profiles of Cast Iron.
12. Tubes, Pipes and Hollow Profiles, Seamless, of Iron (other than Cast Iron) or Steel - Line
Pipe of kind used for Oil or Gas Pipelines.
13. Other Tubes and Pipes (ex: Welded, Riveted or Similarly Closed) having Circular Cross-
Sections, the external diameter of which exceeds 406.4mm of Iron and Steel.
14. Other Tubes, Pipes and Hollow Profiles (e.g: Open Seam or Welded, Riveted or Similarly
loosed) of Iron or Steel.
15. Iron & steel products which has been exempted from Import License but require Certificate of
Approval from CIDB (Construction) or SIRIM (Other than Construction).
16. Cable.
17. Vehicle.
18. Motorcycle.
 19. Motor Vehicles for the transport of goods (i.e.: Dump Truck & Crawler Carrier).
20. Special purpose motor vehicles, other than those principally designed for the transport of
persons or goods excluding fire fighting vehicles (for example breakdown lorries, crane
lorries, concrete-mixer lorries, road sweeper lorries, spraying lorries, mobile workshops,
mobile radiological units).
21. Ships' derricks; cranes, including cable cranes; mobile lifting frames, straddle carriers and
works trucks fitted with a crane.
22. Road Tractors for semi-trailers, completely built-up, old (i.e.: Prime Mover).
23. Plastic Waste (Waste, Paring and Scrap of Plastics).
24. Used Tyre.
25. Toxic Chemicals and their precursors covered under the Chemical Weapon Convention
(CWC) 2005 (precursors is a substance that precedes and is the source of another
substance).
26. Photocopy Machine (Black and White).
27. Photocopy Machine (Colour).
28. Multifunction Printer.
29. Toner.
30. Optical disc mastering and replicating.
31. Medicine Making Machine.
32. Safety helmets except as worn by motorcyclist or motorcycle pillion riders.
33. Activated Clay and Activated Bleaching Earth.

The following goods under the Act require an Export license from MITI:

1. Refined Sugar.
2. Other Sugar.
3. Milk and Milk Product ( Milk & cream, Buttermilk, yogurt, Whey, Butter & other fats/oils, from
milk, Cheese & curd, Malt extract, preparation of milk for infant, condensed sweetened/
unsweetened milk).
4. Cement clinker.
5. Portland cement.
6. Naptha.
7. Roofing tiles.
8. Bricks.
9. Wire Rods.
10. Steel Bar.
11. Other Bars Free Cutting Steel.
12. Bars and Rods, Hot- Rolled, in irregularly, Wound Coils, Of other Alloy Steel.
13. Rods of Alloy Steel; Angles, Shapes and Sections of Other Alloy Steel; Hollow Drill Bars and
Rods Of Alloy or Non- Alloy Steel.
14. Slag, Dross, Scaling & Similar, Waste; iron and steel, zinc.
15. Iron Waste and Scrap.
16. Stainless Steel Waste and Scrap.
 17. Copper Waste and Scrap.
18. Nickel Waste And Scrap.
19. Aluminum Waste and Scrap.
20. Lead Waste And Scrap.
21. Zinc Waste And Scrap.
22. Zinc Dust, Powders and Flakes.
23. Pure Tin Ingot.
24. Tin Waste and Scrap.
25. Magnesium Waste and Scrap.
26. Cinematograph film exposed but not developed, of 16 mm or 35 mm.
27. Toxic chemicals and their precursors covered under the Convention on the Probihition of
the Development, Production, Stockpiling and Use of Chemical Weapons and on Their
Destruction 1993 (CWC).

Application procedures for licence to import/export goods under the Customs Act 1967:

• Completion of form J.K. 69 for import applicants and completion of form Customs No. 2
(Principal Custom Area) or form Customs No. 8 (Licensed Manufacturing Warehouse and
Free Trade Zone) for export.
• Forms can be purchased from Percetakan Nasional Malaysia Berhad or any of its branches.

Submission of applications:

• Completed applications together with relevant supporting documents must be submitted to

either MITI Headquarters or any of its branches depending on the type of goods applied for:

Import and Export Control Division,

2nd Floor, Block 10,
Government Offices Complex,
Jalan Duta, 50622 Kuala Lumpur,
Malaysia

Tel: 603-6203 3022 (General Line)

Fax: 603-6201 3012/4806
II. ZB FORM PROCESS FLOW
( RE- EXPORT )

Importer & SA
Bank
SA /
Issue 4 a) Issue of shipping note &
NVOCC / FF / FA CMO (if required)
1 Purchase
b) Pre-advise TO Free Zone Authority
Order / 2 Submit freight
quotation and
Advise on
finalise freight FA submit ZB1 (Export)
LC (if 7 electronically – FZA-
charges
required)
EDI

8 Hold (if applicable)

Waiting for supporting
TO 9 document Ship
Receive supporting
Received TO loads
Exporter 5 shipment/ 10 document 14
FA container on
consignment Release hold to ship
1 Document details 11
s a) Received Approve / reject
3 instruction for transaction
preparatio Verifies
cargo clearance 12
n 6 booking Update to TO on ZB1
-Invoice b) Prepare ZB1 information (Export) release
(Export) 13
-Packing
List
-Shipping
Instruction

C: Customs D: Ports &

B: Inland Transportation &
A: Documents Preparation Clearance Terminal
Handling
& Tech Control Handling

1
No Process Flow Document Process Time Cost

1 Importer issues purchase order to exporter. LC advise is Purchase 2 Working Days Input from
issued by the bank (for applicable shipments). Order (LC Advise) FMM on
cost

Exporter prepares commercial invoice, packing list & Letter of

shipping instruction (after the order is confirmed). Credit

1 Day
*Shipping booking can be done in advance. Invoice (Document
*Shipping instruction when all details are available. Packing list Preparation)

Overall – 2 days
Shipping
instruction A
2 Submit freight quotation and finalise freight charges with Freight 1 day No cost
shipper: Quotation

- Receive and accept booking from shipper.

Shipping
- Provide shipper with booking confirmation. instruction

*Freight quotation and freight charges can be done in

advance

3 a) Exporter books container with SA through FA. ZB1 Overall – 2 days RM0.88 per
(Export) kb

b) Prepare EDI fee

PrepareZB1 (Import)
ZB1 FormForm.
(Export) and followed by ZB2 (Export) Form.
(RM30) - FA
2
No Process Flow Document Process Time Cost

4 a) SA sends CMO to FA. CMO 2 hours No cost

Manual +
b) Booking pre-advise is sent to TO. Electronic

5 TO receive shipment / consignment details as export pre- Online 1 minute No cost

advise through online or EDI.

6 Port operator verifies the container details. The container Export pre- 5 minutes No cost
is stacked in the container yard based on declared export advise details
vessel.

B
7 FA submit electronic ZB1 (Export) from through FZA-EDI ZB1 (Export) 5 – 60 minutes RM0.88
system. per kb
Online
EDI fee
FZA received ZB1 (Export). (RM30)- FA
Receiving approx.
30 minutes.

Processing in 60
minutes after
receiving complete
declaration

3
No Process Flow Document Process Time Cost

8 Hold, if supporting document needed. - 1 minute No cost

9 FZA waiting for supporting document to be submitted - Up to 48 hour No cost

by FA. until supporting
document
submitted

10 Receive supporting document. ZB1 (Export) 5 – 10 minutes No cost

Invoice / B
Packing List

11 FZA release hold on electronic declaration. - 1 minute No cost

12 FZA approve / reject declaration. - 1 minute No cost

13 A
A copy of approved
copy of approvedZB1ZB1&(Export) transactions
ZB2 (Import & Export) 30 minutes No cost
electronically send to TO send
transactions electronically to update
to TOinformation
to update and for
release.
information and for release
No Process Flow Document Process Time Cost

14 TO loads container on to export ship / vessel. Loading List 2 minutes No cost

+ Bay Plan
C
Legend (Re-Export from Free
Commercial Zone Flow):
• LC – Letter of Credit
• SA – Shipping Agent
• NVOCC – Non Vessel Operating Common Carrier
• FF – Freight Forwarders
• FA – Forwarding Agent
• ZB1 (Export) – Free Zone Authority declaration
form for export from Free Commercial Zone
• CMO – Container Movement Order
• FZA – Free Zone Authority
• TO – Terminal Operator/Port Operator
• FZA-EDI – Free Zone-EDI System 6