Background Media

Duty Free Importation

How We Can Help?

  • Provide consultancy services to MSC Malaysia status companies on procedures involved with regards to duty free importation of IT/Multimedia equipment application.
  • Lias with Ministry of Finance on matters relating to duty free importation of IT/Multimedia equipment application submitted by MSC Malaysia status companies.
  • Process duty free importation applications received from MSC Malaysia status companies and table them in the bi-weekly approval committee meeting, i.e. Jawatankuasa Pengecualian Cukai Peralatan Multimedia (JPCPM) Meeting.

What is the Process?

The process of applying for this exemption is as simple as filling up forms and submitting to MSC Malaysia Client Contact Centre. The simple process flow reflected below:

CONTACT MSC MALAYSIA CLIENT CONTACT CENTER

  • First-time e-Dfi users are required to email Ms. Sabrina Mohd Khir at sabrina@mdec.com.my or contact CLIC in order to iniate the e-Dfi registration process; either via email at clic@mdec.com.my or telephone no. 603-8315 3100 or Toll Free (Malaysia Only) 1-800-888338.

CONFIRMATION

MDEC will then confirm applicant's mailing address and Person in Charge (PIC).

ISSUANCE OF e-DFI PACKAGE

  • MDEC will mail the e-Dfi package (Guidelines) to the mailing address and PIC as confirmed by the applicant.

e-Dfi ROLL-OUT

  • MDEC's PIC will provide hands-on training on e-Dfi System.
  • Applicant's username and password will be provided during the session.

SUBMISSION OF APPLICATION

  • Applicants are required to log in e-Dfi and complete all required fields.
  • Supporting documents (e.g. equipment brochures, catalogues, pictures) are to be scanned and uploaded thru e-Dfi.

MDEC CHECKS FOR COMPLETENESS

  • MDEC checks for completeness of the information provided by the applicant in e-Dfi.
  • Any amendments/improvements/recommendations will be suggested via e-Dfi.

ISSUANCE OF ACKNOWLEDGEMENT LETTER

  • MDEC will next issue an Acknowledgement Letter to the applicant. The applicant is required to collect the Acknowledgement Letter by hand.
  • In urgent cases, the applicant can use the Acknowledgement Letter, attached with a Bank Guarantee in order to clear the importations of multimedia equipment from the customs station.

APPROVAL MEETING IN MDEC

  • The application will be tabled and reviewed in the Mesyuarat Jawatankuasa Pengecualian Cukai Peralatan Multimedia (JPCPM) at MDEC. The final decision of approval will be made during the meeting.

APPROVAL LETTER IS PROVIDED TO CLIENT

  • Once the Ministry of Finance's Approval Letter is ready, MDEC will inform the applicant via telephone/e-mail. Applicants are to arrange for collection.
  • The applicant may forward the Approval Letter to customs station for approval of equipment importation or to reclaim the Bank Guarantee from customs.

Downloads

Download guide for importations of IT equipment here.

FAQ

It is advisable to submit your duty free importation application to MDEC at least one month before the equipment(s) is imported.

Subject to the provisions under the Customs Act 1967 and the Sales Tax Act 1972, and such conditions as may be imposed by the Minister of Finance, the import by MSC Malaysia Status entities of multimedia equipment and components for direct use in the operation of their MSC Malaysia qualifying activities are exempted from import duties and sales tax.

The exemption criteria to be met for such multimedia equipment and components are as follows:

  1. Multimedia/ICT equipment.
  2. Equipment is not available locally (i.e. not locally manufactured, however locally manufactured Multimedia / ICT equipment purchased by MSC Malaysia Status entity may be eligible for sales tax exemption).
  3. Equipment is not for trading.
  4. Equipment is "directly used" for MSC Malaysia qualifying activities.
  5. The MSC Malaysia Status entity complies with the relocation requirement in its Conditions of Grant of MSC Malaysia Status.

Please take note that the final decision resides with the Ministry of Finance.

Other conditions:

  1. Multimedia / ICT equipment must be imported directly from the country where the equipment will be imported from.
  2. The Minister of Finance's exemption does not cover importation of Multimedia / ICT equipment via land from Singapore.

Effective 1st April 2010, all duty free importation applications are to be submitted online via our e-Dfi (Electronic Duty Free Importation), which is a web-based system. First-time e-Dfi user is required to contact the MSC Malaysia Client Contact Center (CLIC) at clic@mdec.com.my or 603 8315 3000 or email Ms. Sabrina Mohd Khir at sabrina@mdec.com.my to initiate the registration and roll-out process. Once the e-Dfi System Roll-Out process has been completed, the applicant can next submit their application online via e-Dfi.

After the application has been successfully submitted online, MDEC will accept the application via e-Dfi and will issue an Acknowledgment Letter within two (2) working days. Your duty free importation application will next be tabled in a special approval committee meeting, known as Jawatankuasa Pengecualian Cukai Peralatan Multimedia (JPCPM) Meeting, which normally convenes twice a month for the decision. Once the decision is made, the Ministry of Finance will issue an official letter to your company which MDEC will collect on behalf. Normally the whole process, from company's submission to Ministry of Finance decision, takes 2 to 3 working weeks.

The Acknowledgment Letter is a letter that states that your duty free importation application has been received by MDEC and pending Committee Members' review and Ministry of Finance approval. In urgent cases, i.e. when the shipment has arrived at the port in Malaysia, you may use the Acknowledgment Letter coupled with your Bank Guarantee to clear the equipment first prior to obtaining the Ministry of Finance decision.

The JPCPM Committee Members consist of representatives from:

  • Multimedia Development Corporation (MDEC)
  • Ministry of Finance
  • Royal Malaysian Customs
  • Malaysian Industrial Development Authority (MIDA)
  • Malaysian Communications and Multimedia Commission (MCMC)

Scenario 1 - If your company has submitted duty free importation application(s) to MDEC but pending the decision from the Ministry of Finance, your company may utilize MDEC Acknowledgment Letter coupled with a Bank Guarantee to clear the equipment from Customs. The Bank Guarantee can be applied through your current arrangement with your financial institution.

Scenario 2 - If the Ministry of Finance has approved your duty free importation application and has issued the Approval Letter, please forward the original copy of the Approval Letter to the Customs Station to clear the equipment from Customs.

No. If you have paid the duties, i.e. clearing the shipment by not using MDEC Acknowledgment Letter together with your Bank Guarantee, and wish to reclaim the paid amount by submitting duty free importation application to us, please take note that the shipment is no longer eligible for duty free importation. In order to enjoy the duty free importation incentive, you must first submit your duty free importation application to us, obtain MDEC Acknowledgment Letter, and clear the equipment using the Acknowledgment Letter with your Bank Guarantee if you wish to do so prior to obtaining the Ministry of Finance decision.

Yes, once you have received the official Approval Letter from Ministry of Finance, you can reclaim the Bank Guarantee which has been submitted earlier by forwarding the original copy of Approval Letter to the Customs Station. We advise that you first check the list of equipment approved by Ministry of Finance since there are possibilities that some equipment may not be approved for duty exemption. In this case, your company will have to bear the sales/import duties of the equipment which are not approved for an exemption.

No. Any communication apparatus capable of being used for telecommunication, or their motherboards and apparatus to be attached or connected to Public Network or System or licensed network must obtain approval from SIRIM QAS International Sdn Bhd. The approval must first be acquired prior to the clearance of equipment from Customs. Enquiries regarding this matter can be made to SIRIM QAS International Sdn Bhd at 603 5544 6400. Apparatus Assignment is also required for persons or organizations that need to use and/or operate telecommunication apparatus in a specific frequency, eg. broadcast or cellular stations. Enquiries regarding this matter can be made to the Malaysia Communication and Multimedia Commission at 603 8688 8000.