Export License in Malaysia? It's Easy If You Do It Smart

This document specifies the general procedure and guideline for obtaining the export license in Malaysia and also an overview of export procedure in Malaysia.

This procedure describes here should be compiled by the companies who wish to obtain the export license of commercial products and this export license is controlled under the Custom order 2008 (Prohibition of Export), Customs Acts 1967.

The list of product that is listed under the custom orders is cement, roof tiles, gravel stones, mining products, chemical products (under the chemical weapon convention), iron steel and food products.

Export License in Malaysia

For obtaining an export license, the eligible companies to apply should be registered with the companies’ commission of Malaysia.

The potential applicant should fill up the custom form K2, Memorandum and articles of associations, form 24 with the information of shareholders, form 49 with the information of directors, managers and company secretary.

Note that form 24 and 49 needs to be submitted only for the first time application. The custom for K2 is available at Syarikat Percetakan Nasional (M) Bhd., Jalan Chan Sow Lin 50554 Kuala Lumpur.

The application with all supporting document need to be submitted at Ministry of International Trade & Industry (MITI), Import & Export Control Section, 2nd Floor, Block 10, Govt Offices Complex, Jalan Duta 50622 Kuala Lumpur.

The supporting documents that need to be attached to the application based on the types of product exported. In below the list shows the required document for some common export product:

• Cement Base Product Export: Sales Invoice Required
• Roofing Tiles and other tiles related product: Sales invoice and sample of the product is required
• Gravel stone and Stone Aggregate Export:
• Need to obtain an approval letter from the land and district office.
• Also, need to obtain a state mining department for exploitation of silicon sand.
• Need to obtain an original permit (For 4C) from the respective state land and District Office.
• Sales invoice
• And the sample of gravel aggregates

Mining Product export

• Need to obtain an approval letter from the state mining office o Need to obtain records of exploitation
• Need to obtain sales invoice
• Also, need to submit the sample of mining product

For chemical products are protected by the Chemical weapon convention law and new to submit sales invoice for export.

Iron and steel product export

• Long iron products, sales invoice, and packing list need to provide. o For exporting scarp iron need to provide,
• Manufacturer license ICA 1975
• The business license for scarp items from the Royal Malaysian police department
• Sales invoice and packing list

Note that: for exporting scrap metal, iron is allowed to export but aluminum scrap is not allowed

Food products export, there are few define types

• For exporting Palm oil, license need to be obtained from the palm oil board of Malaysia (MPOB) and also need to provide sales invoice.
• For exporting Milk and milk-based product, purchase invoice from local and foreign milk manufacturer must be provided for the trading companies. Also, need to provide the sales invoice and packing list.
• For exporting sugar related product (except refined sugar), samples of sugar need to submit and also sales invoice need to provide.

After the application submitted with all required documents the secretary general of MITI access the application and usually within five working days the application gets processed for manual submission and three working days for online submission.

In order to initiate an export, the importer issues a purchase order from or advice on LC from a bank origin of importer’s country.

Based on the document provided by the importer, the exporter prepares invoice, packing list and add shipping instruction if there is any. 

Then shipping agent, forwarding agent and freight forwarders come into the picture and they submit freight quotation and finalize freight charges.

In meantime, PIA provides approval of export permit if applicable.

Then forwarding agent or freight forwarder receive instruction for cargo clearance and submit shipping instructions, prepare a K2 form, apply for the permit for any specific product, submit the application to cargo delivery to a warehouse and obtain approval.

Additionally, they need to make the declaration for dangerous goods.

After this, the document goes to shipping agent and they receive shipping instruction from FA or shipper, prepare the bill of lading, and prepare IED and pre-advice port/terminal on cargo booking.

The port operator or terminal warehouse receives shipment or consignment details through online or ED. The forwarding agent arranges and delivers cargo to the port or terminal warehouse and also submits the application for cargo delivery.

Now the customs authority appears on a picture and they receive the electronic copy of the K2 form and channeled to PIA if required.

They also receipt of duty payment if applicable and approve and receive the K2 form.

Then the inland transporter picks up the goods or cargo from the exporter and pays the port charges. The terminal operator loads the cargo onto a ship. Finally, the shipping operator prepares the bill of landing and submits export manifest to custom or port operator.

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