WORLD TRADE
ORGANIZATIONTN/MA/W/25/Add.2
27 June 2003
(03-3430)
Negotiating Group on Market Access Original:  English
NON-TARRIFF BARRIER NOTIFICATIONS
Addendum
I. PEOPLE'S REPUBLIC OF CHINA.......................................................................................2
II. MALAYSIA.................................................................................................................... .........48TN/MA/W/25/Add.2
Page 2
I. PEOPLE'S REPUBLIC OF CHINA
Maintaining
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the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
Mechanical & electrical
productsHS Code 8401-8485;8501-8548; 8701-8716Provisions on magnet-
electricity compatibility inElectricity Act  1998; Energy
Rating Label ; &
Radiocommunications ACT
1992.• Certification
• Authentication is
expensive, time-consuming and
required for all types
of the products.Part III, C
Pencil leads, black or
coloured,  9609.10.00CAMEX Resolutions No. 3
published on OfficialCommuniqué on 2002/26/02,provides that original anti-
dumping cases relating to
these products expired on Feb.26 2002 needs to be revisedand during the revision, theanti-dumping duties of301.5% remained.Anti-
dumpingduties(Part II: A)
Table electrical fans
8414.51.10CAMEX Resolution No. 25
decided that the anti-dumping
duties on the products, say45.24%, remained at the samelevel until 2006/7/08.DittoTN/MA/W/25/Add.2
Page 3Maintaining
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12 3 45 6 7
All types of locks(excluding those forbicycles) 8301.10.00According to the decision on
1994/6/09, 0.033-1.42 USDper unit was levied as anti-dumping duties for thefollowing 5 years. The
decision remained valid after
revision on 2001/4/12. Andaccording CAMEXResolutions No. 38, dumpingfact still exists and anti-dumping duties of 60.3%
remained until 2006/4/12.Ditto
Bicycle tyres. 4011.50.00 According to the decision on
1998/2/01, dumping factexisted and anti-dumpingduties of 66.57% were leviedin the following 5 years. On
Dec. 19 2002, SECEX
Resolution No. 60 providedthat the case needed revision,during which anti-dumpingduties remained at the samelevel.Ditto
Barium carbonate,
2836.60.00According to the decision on
1992/8/07, dumping fact
existed and anti-dumpingduties of 92% was levied inthe following five years.CAMEXA MICT/MFResolution No. 14 provided
that the duties remained at the
same level until 2003/6/07.DittoTN/MA/W/25/Add.2
Page 4
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categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
Ring-like permanentmagnets, 8505.19.10According to CAMEX
MICT/MF Resolution No. 11,dumping fact exists and anti-dumping duties of 43% werelevied from 1998/8/06 to
2003/8/06.Ditto
Spiral steel bore,
8207.50.11/8207.50.19/8207.50.99According to CAMEX
MICT/MF Resolution No. 27,dumping fact exists and anti-dumping duties of 135.11%are levied from 1998/24/12 to2003/24/12.Ditto
Vacuum flasks,
9617.00.10According to CAMEX
MICT/MF Resolution No. 7,
dumping fact exists and anti-dumping duties of 47% arelevied from 1999/21/07 to2004/21/07.Ditto
Glass inners for vacuum
flasks, 7012.10.00According to CAMEX
MICT/MF Resolution No. 7,
anti-dumping duties of 45.8%are levied from 1999/21/07 to2004/21/07.Ditto
Metal grill, netting and
fencing, 7314.41.00,7314.49.00Anti-dumping investigation
was started on 2001/4/06, andfinal decision is yet to be
made.
Glyphosate,
2931.00.32/2931.00.39/3808.30.23Anti-dumping investigation
was launched on 2001/30/08;the last hearing was held inSept 2002. Final decision isyet to be made.DittoTN/MA/W/25/Add.2
Page 5Maintaining
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categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
0301: live fish;0302: fish, fresh orchilled;0303: fish, frozen;0304: fish fillets and
other fish meat, fresh,
chilled or frozen;0305: fish, dried, saltedor in brine; smoked fish,etc.;0306: crustaceans,
whether in shell or not;
0307: molluscs, whetherin shell or not;• No. 572/2002 “Act on
ImportingSea/Aquatic/CulturalProducts from EEACountries”:
• As for the import of meat
products, every 3-6months, notification ofquotas or market access isprovided in line with themarket situation.
Sometimes market access
is allowed for allimporters; sometimesimport quotas arearranged through public
tendering. Ministry of
Agriculture is in charge ofthe whole issue.
• Constraints are imposed
on non-citizens investingin fishing and energy
utilisation according to
No. 34/1991.3.25 “ Act on
Commercial Investment ofNon-citizens  (ACION)”;
No. 121/1993.12.27“Amendment to ACION ”;
and No. 46/1996.5.22
“Amendment to ACION ”.China’ s import of sea
products,  fishing andrelevant processing, andinvesting on energyresourcesPart I, A&D;
Part III: B&CPart IV, A&I
Notes:
limitations on
investment onfishing andenergy  are notconcluded“Agreement of
Subsidizing andCountervailingmeasures”  part III,
Article 6-6.3;
“Technical trading
barriers”  Article
12-12.1&12.7;“Agreement ofImplementingHealth & Botanic
Health Measures”
Article 10;“Agreement of
Import LicensingProcedure”
General Article I-
2;TN/MA/W/25/Add.2
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12 3 45 6 7
Note:Established WTOprovisions do notcover thelimitations of
commercial
investment of non-citizens on fishingand energyutilisation
Majority of China’sproducts exportedValued by the customs Increased tariff of
imported products from
ChinaPart II, B
Wood  4403, 4407
Part of mineral productsProviding for the bottom price
of the exported productsDecreasing
competitiveness ofexported productsPart IV, J abolish bottom
pricingTN/MA/W/25/Add.2
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12 3 45 6 7
Traditional ChineseManufactured Medicine(TCMM)In applying for import license,
importers have to submitcertificates of TCMMproduction and sales whichshould be official documents
issued by the government of
manufacturers, includingdetailed information ofcomposition of the rawmaterial and ingredients,specifications etc.
Importers are required to
submit to Drugs Imp&ExpAssociation “StandardClearance Report”, (includingname of the products,
instructions of ingredient
composition and ration,packaging institutions,pathological effect etc.) aswell as import license. Giventhat production of TCMM is
of confidentiality, only the
requirement for instructions ofingredient composition andration included in theclearance report has alreadykept TCMM out of the
market.By now, there is no
normal channel in forTCMM import except forsome finished drugs withTCM componentsTechnical
tradingbarriers/technical standardsDittoTN/MA/W/25/Add.2
Page 8
Maintaining
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provisionTreatment of the
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12 3 45 6 7
Chinese medicinalmaterialsIt has stringent examination
procedure and quality criteriafor the import of Chinesemedicinal materials.  Somecriteria (e.g. no bleaching
agents is allowed) is even
hardly met by domesticallyproduced medicinal materials,and therefore impractical.While in examination, theMember is likely to loosen or
tighten the standards only
based on its domesticdemands, which brings aboutmany uncertainties toclearance examination of
Chinese medicinal materials.Export of Chinese
medicinal materialTechnical
tradingbarriers/technical regulationscriteria
All commodities Anti-dumping Act Part II – ATN/MA/W/25/Add.2
Page 9Maintaining
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12 3 45 6 7
1604: prepared orpreserved fish;3208: paints andvarnishes dispersed ordissolved in a non-
aqueous medium
3209: paints andvarnishes, dispersed ordissolved in an aqueousmedium;330510:shampoos;
3306: preparations for
oral or dental hygiene;3401: soap;3402:organic surface-active agents (other than
soap);
3924: tableware,kitchenware, otherhousehold articles andtoilet articles, of plastics;4814: wallpaper and
similar wall coverings,
57: carpets and othertextile floor coveringsknotted, whether or notmade up;Bottom-line pricing for some
imported commoditiesPart II – BTN/MA/W/25/Add.2
Page 10
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categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
57: tapestry5904: linoleum, whetheror not cut to shape;6907: unglazed ceramic
flags;
6908: glazed ceramic
flags;6910: ceramic sinks,wash basins, wash basinpedestals, baths, bidets,water closet pans,
flushing cisterns, urinals
and similar sanitaryfixtures;732410: sinks and washbasins, of stainless steel;
848180: mixed
appliances of hot/coldwater; and those withsprinkling head;8528: receptionapparatus for television,
video recording or
reproducing apparatus;TN/MA/W/25/Add.2
Page 11Maintaining
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12 3 45 6 7
Commodities fromcountries enjoyingpreferential tarifftreatment;From those under quota
restrictions or other
foreign trade regulationsrestriction;As provided ininternational agreementsor regulations in
environmental
protection, health care,consumer’s interests,social stability, nationalsecurity etc.
Information of the
products’ origins is notincluded in the clearancereport or doubted by thecustoms. -- General
Rules of Customs,Rules of origins are imposed
on part of the commoditiesPart II – F
All commodities Overhead, 0.15% of declared
value, is levied by customs.Part II – G
3001 90 –
internal organs;3002 90 300: animalblood;4101,4206,4301, 6701—leather materials, natural
fur skins, articles of gut,
of goldbeater’s skin, ofbladders or of tendons;Safety examination &
supervision are requiredPart III – BTN/MA/W/25/Add.2
Page 12
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categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
3002 30: vaccines forveterinary medicine;928400: salts, used inanimal feeding;
31010000,310590990 –pesticide & fertilizer;
agricultural machinery,
farming facilities,transport devices,containers, packagingmaterials, products ofindustrial/vegetable
materials, samples of
original soil and stone;
3001-3004 –drugs and plants;
3005,3006 –
articles and theircomponents forpathological/surgical use,bandage dressings,rubber products,
reagents, dental material,
contraceptive devices,health care devices, andpatient-care apparatus,etc.;TN/MA/W/25/Add.2
Page 13Maintaining
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provisionTreatment of the
barrier
12 3 45 6 7
4901,4903-4905 –school articles;8422,8436 –food preparationequipment;
2501 –
salts;
5007,5111,5112,5207-5212,5309-5311,6101-6110,6115,6112,6201-6208,6210-6212,6401-6405,5407-
5408,5512,5513-5515 –
clothering/clother/shoesfor adults, special goods;natural materials, new-tech equipment, new
craft, environmentally
hazardous materialsprovided in “BaselConvention” &“Montreal Protocol”; andtechnical documents of
above-mentioned
materials.TN/MA/W/25/Add.2
Page 14
Maintaining
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categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
8548 –waste and scrap ofprimary cells, primarybatteries and  electricaccumulators; utensils
used under pressure.
8401-8406,8462,3601-3606 –technical devices &equipment in dangerousproduction;
3604 –
fireworks and other
pyrotechnic articles;equipment forfeeding/powder;equipment for grain
transport/ storage
271320—petroleum
bitumen;2715—mastics;6905—ceramic flags;3214—putty, bottom
painting, and other
painting materials;3918—wall or ceilingcoverings;Safety authentication is
requiredPart III - CTN/MA/W/25/Add.2
Page 15Maintaining
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provisionTreatment of the
barrier
12 3 45 6 7
3921—floor/wall flags,plates, film, foil & stripof polymers;7214—bars and rods ofsteel;
6804-6810—excluding
“others”;0708—leguminousvegetables, shelled orunshelled, fresh orchilled;
0713,1001-1005,1007—
crops2301,2309-animalfeedings;
8517, 8525-8531,854470—telephone,
ATC, facsimile, wireless
transmission, andreception apparatus.8501,850431,8516—electric motors/generators/electric
heater/transformers of
low output;TN/MA/W/25/Add.2
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Maintaining
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categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
850100, 8502, 8401,8404, 8536— motorapparatus, and itscorresponding devices.8465, 820790100,
820540000, 820411000,
820520000, 820412000,820320, 820420000,820570000, 820540000,8508, 846591900,82053000, 7321,
840390900,8482,
842511, 8438, 8435,8434, 8476, 8433, 9303-9306—machinery
manufacturing products;
8507-8516, 8518-8522,
8531, 8532, 8546, 8535-8537, 8413-8418, 8544,84121, 8422, 8447,8450-8452, 9405, 9504,
9101, 9105, 8504, 9106,
9107, 9207,8539—electric appliance andmeter manufacturingproducts;TN/MA/W/25/Add.2
Page 17Maintaining
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provisionTreatment of the
barrier
12 3 45 6 7
9018, 9019, 900140,900150, 9004, 280440,9021,9022—medicalequipment andappliances;
2710—oil products
3829225790,382000;9025,9026,9028,9030,8423,9029—measuringinstruments & apparatus;
3208-3209, 3214, 3814,
382490400, 4814—paintings and wall paper;3303-3307, 3401, 3402,4803, 4818,
960321000—cosmetics,
soaps and hygienicproducts.
3921-3924, 4415, 4806,4805, 4014, 6309, 4810,3917, 6911, 7607, 7013,
4819, 8309, 5608,
4832—containers andpackaging materials;TN/MA/W/25/Add.2
Page 18
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provisionTreatment of the
barrier
12 3 45 6 7
5208, 5211, 6107-6109,6612611110900, 6207-6209,6403-6405,5309,611120900, 6115—
tailoring clother,
knitwear, shoes forchildren;6909-6912, 7010-7013,7323, 7418, 7615, 8215,82119—ceramic
tableware, porcelain.
9501-9503—toys;
9401, 9403, 4410,4412—furniture, parts offurniture.
• 8471, 847330000,
854390900—cipher
equipment;
• arms & military
equipment;
• toxin-proof military
equipment and its
accessories;Import licensing and quantity
restrictionPart IV – ATN/MA/W/25/Add.2
Page 19Maintaining
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12 3 45 6 7
• military costume and
badge
• technical documents
for military use;
• 3601-3604:
fireworks, fire
powder, and otherpyrotechnic articles(excluding powderfor hunting guns)
• Nuclear materials,
technologies, arms
and equipment;special non-nuclearmaterials,radioactive wastes.
• Materials/equipment
/technologies for
civilian use, whichmay be used also forarms of massdestruction.TN/MA/W/25/Add.2
Page 20
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barrier
12 3 45 6 7
• 2606, 2843,
300640000, 7106-7112, 711319000,711411000,711419000,
711510100,
711590900, 7118,9544, 900319100,902129100,911110000,960810300,
960839100: noble
metal, noble metalalloy and itsproducts; noblemetal-plated
materials and their
products; ore etc.
• 7101-7103, 7105,
7116 Precious stonesand their products;precious naturalstones and
renewable materials
and their products;
• Narcotics and
mental drugs.
• Hypertoxic products.TN/MA/W/25/Add.2
Page 21Maintaining
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12 3 45 6 7
• Hazardous wastes;
• drugs
• weapons of
civilian/official use
• ozone-depleting
matters and products
containing thesematters (see “ViennaConvention”&“Montreal
Protocol”)
• Production/procure
ment of ethylalcohol used foralcohol productshave been broughtunder quota
restriction since
Resolution 343 wasadopted on2002/28/05.
• Ministry of Water
Conservancy &
Processed Industry
is in charge of quotaarrangement,distribution andsupervision. Quota
applicants are
required operationallicense for alcoholproducts.TN/MA/W/25/Add.2
Page 22
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barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
300410900 (9 drugs)300420900 (27 drugs)300420100 (26 drugs)300450100 (3 drugs)300290300 (4 drugs)
300220900 (1 drug)
300432100 (9 drugs)300190910 (1 drug)
72: Hotrolled steel plate Anti-dumping Influencing export of
metal products (steelmaterial in particular)from ChinaPart II – A
72: hotrolled  carbon
alloy steel plateDitto Ditto Ditto
72: anti-erosion steel
plateDitto Ditto Ditto
64: woman’s footwear Ditto Influencing China’s
footwear exportDitto
64: water-proof footwear
with outer soles anduppers of rubberDitto Ditto Ditto
64: water-proof footwear
with outer soles and
uppers of rubber or ofplasticsDitto Ditto Ditto
64: leather shoes with a
protective metal toe-capDitto Ditto Ditto
8712: bicycles and
bicycle framesDitto Influencing light
industrial products’exportDitto
2930: xanthates Ditto Influencing chemical
products’ exportDittoTN/MA/W/25/Add.2
Page 23Maintaining
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12 3 45 6 7
52-59: textile, clothering Quota restriction Constraining export of
textile products andclotheringPart IV-A
Textile products Technical barriers (dyestuff
indicators)Import and export trading
of the commodities
Electrical & mechanicalproducts, and household
appliancesTechnical barriers (safety
indicators, CE mark)Ditto
Toys Ditto Ditto
Ceramic products Technical barriers (lead
content)Ditto
Leather Technical barriers (PCP
residue)Ditto
292249100: other amino
acidsTrust deed of the importers
360410000: fireworks &
signalling flaresLicense issued by Police
Bureau of Internal Affairs
Ministry
392610000: other office
or school supplies,plasticFor military use, license
issued by Ministry ofEconomic Affairs; For civilianuse, none
392620000: plasticarticles of apparel andclothering accessoriesDitto
392640000: plastic
statuettes and other
ornamental articlesDitto
392690919: other articles
of plasticsDitto
392690999: other articles
of plasticsDittoTN/MA/W/25/Add.2
Page 24
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categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
420212910: other tr unks
and suit-cases with outersurface of plastics or oftextile materialsDocument about the
components and specificationsof the commodities
420212990: other tr unks
and suit-cases with outer
surface of plastics or of
textile materialsDitto
420222100: handbags
with outer surface ofplastic sheeting or oftextile materialsDitto
420222900: handbags
with outer surface of
plastic sheeting or of
textile materialsDitto
420229000: other
handbagsDitto
420232900: articles of a
kind normally carried inpocket or in the handbag,
with outer surface of
plastic sheeting or oftextile materialsDitto
420292110: other tr unks
and suit-cases, with outersurface of plasticsheeting or of textile
materialsDittoTN/MA/W/25/Add.2
Page 25Maintaining
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barrier
12 3 45 6 7
420292910: other tr unks
and suit cases with outersurface of plasticsheeting or of textilematerialsDitto
420292980: other tr unks
and suit-cases with outer
surface of plasticsheeting or of textilematerialsDitto
420310000: articles of
apparel and gloves,mitten, and mitts, of
leatherDitto
420329100: working
gloves, of leatherDitto
540761100: other woven
fabrics, containing 85%or more by weight ofnon-textured polyester
filamentsComponents, size and
technical specifications of thecommodities;Pricing based on customs
evaluations
550810110: sewing
thread of synthetic staplefibresDitto
580810009: braids in the
pieceDitto
610711000: men’s or
boys’ underpants andbriefs, knitted or of
cottonComponents, size and
technical specifications of thecommodities; pricing based on
customs evaluations;
Health certificate forunderpants and briefs for boysTN/MA/W/25/Add.2
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categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
611030910: knittedpullovers, waistcoats etc,of man-made fibresDitto
611030990: knitted
pullovers, waistcoats etc,of man-mad fibresDitto
611212000: knitted track
suits, ski suits and
swimwear of syntheticfibresDitto
611593990: stocking,
socks and other hosiery,of synthetic fibresDitto
611693000: knitted
gloves, mittens and mitts
of synthetic fibresDitto
620193000: men’s
overcoats padded withfeathers or down, ofchemical fibresDitto
620293000: women’s
overcoats padded with
feathers or down, of
chemical fibresDitto
620342350: other
trousers of cottonDitto
620462310: trousers, bib
and brace overalls,breeches and shorts, ofcottonDitto
620520000: men’s shirts,
of cottonDittoTN/MA/W/25/Add.2
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barrier
12 3 45 6 7
621600000: non-knittedgloves, mittens or mittsDitto
640219000: sky-boots,
footwear of rubber orplasticComponents, size and other
technical specifications;Pricing based on customsevaluations; and
Health certificate for the
commodities for children
640220000: sportsfootwear with upperstraps or thongsassembled to the sole bymeans of plugs, of rubber
or plasticDitto
640291000: footwear
covering the ankle ,Ditto
640299310: other
footwear, of rubber or ofplasticDitto
640299390; other
footwear, of rubber or of
plasticDitto
640299500: slippers and
other indoor footwear, ofrubber or plasticDitto
640299910: other
footwear of rubber or ofplasticDitto
640299930: other sports
footwear, of rubber or
plasticDittoTN/MA/W/25/Add.2
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barrier
12 3 45 6 7
640299960: other men’sfootwear, of rubber or ofplasticDitto
640299980: other
women’s footwear, ofrubber or plasticDitto
640319000: other sports
footwear with outer soles
of rubber, plastic, leatheror composition leatherDitto
640399960: other men’s
footwear with outer solesof rubber, plastic, leatheror composition leatherDitto
640411000: sports
footwear with outer soles
of rubber or plasticDitto
640419900: other
footwear with outer solesof rubber or plasticDitto
640520910: other
footwear with uppers of
textile materialsDitto
640590100: footwear
with soles of rubber,plastic, leather orcomposition leatherDitto
841451900: table fans,
floor fans and other fansWith CE mark which is the
standards;Complying with technical
regulationsTN/MA/W/25/Add.2
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barrier
12 3 45 6 7
841581900: airconditioning machineswith cooling unit andreversible heat pumpsDitto
841582800: other air
conditioning machines
with cooling unitsDitto
842123900: oil or petrol
filtersDitto
842310100: personal
weighing machines andhousehold scalesDitto
842390000: weighing
machine weights of allkinds; parts of weighing
machineryDitto
842490900: spray
machines, fireextinguishers , sprayguns and similarappliancesDitto
843311100: mowers,
powered, with the cutting
device rotating in ahorizontal planeDitto
845229000: other
automatic sewingmachinesDitto
846229910: other
machine toolsDitto
846239910: other
sheering machine toolsDittoTN/MA/W/25/Add.2
Page 30
Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
846721100: drillselectric or non-electricmotorDitto
846721990: other drills Ditto
846729510: burnishes Ditto
846729590: other tools
of working in the handDitto
846729900: other tools
of working in the handsDitto
847010000: calculators Ditto
847160400: displays Ditto
847160500: scanners Ditto
847160900: other I/O
units of computersFor military use, license
issued by Ministry of
Economic Affairs;For civilian use, CE mark, andtechnical regulations
847170510: hard discdriversCE mark, technical regulations
847170530: hard disc
driversDitto
847170590: other storage
unitsDitto
847180000: other units
of automatic dataprocessing machinesFor military use, license
issued by Ministry ofEconomic Affairs;For civilian use, CE mark, andtechnical regulations
847190000: unlisted
magnetic or optic readersDitto
847330100: parts and
accessories of automaticdata processing machinesDittoTN/MA/W/25/Add.2
Page 31Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
847330900: parts of printelement of stylus printersCE mark, and technical
regulations
847510000: machines forassembling electric orelectronic lamps andsimilar articlesDitto
847529000: machines for
manufacturing hot
working glass orglasswareDitto
848180110: regulating
valvesDitto
848180190: other valves Ditto
848180990: other valves Ditto
848190000: parts of taps,
cocks, and similar
appliances, of valvesFor military use, license
issued by Ministry of
Economic Affairs;
For civilian use, CE mark, andtechnical regulations
848210900: ball bearings Ditto
850431900: othertransformersCE mark, and technical
regulations
850440200:uninterrupted powersuppliersDitto
850440930: other
voltage-stabilized
suppliersDitto
850450800: part of liquid
dielectric transformersDitto
850610110: cylinder
cells of manganesedioxideDittoTN/MA/W/25/Add.2
Page 32
Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
850610910: cylindercells of manganesedioxideDitto
850720890: other lead-
acid electricaccumulatorsDitto
850910100: household
vacuum cleanersDitto
850940000: food
grinders, and juiceextractorsDitto
851010000: shavers,
with self-containedelectric motorDitto
851020000: hair clippers
with self-contained
electric motorDitto
851310000: portable
electric torchesDitto
851610190: electric
water-heatersDitto
851629100: electric soil
heating apparatusDitto
851631900: hair dryers Ditto
851640100: electric
smoothering ironsDitto
851640900: electric
smoothering ironsDitto
851650000: micro-wave
ovensDitto
851671000: electric
coffee or tea makersDitto
851672000: toasters DittoTN/MA/W/25/Add.2
Page 33Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
851679800: otherelectric apparatusDitto
851719900: videophones For military use, license
issued by Ministry ofEconomic Affairs;For civilian use, CE mark, and
technical regulations
851721000: facsimile
machinesDitto
851750900: other cabled
digital communicationsappliancesCE mark, and technical
regulations
851821900: singleloudspeakers, mounted intheir enclosuresDitto
851822900: multiple
loudspeakers, mounted in
the same enclosureDitto
851829800: other
loudspeakersDitto
851830800: headphones
and earphonesDitto
851999180: compact
disc playerDitto
852190000: laser video
compact disc playerFor military use, license
issued by Ministry of
Economic Affairs;For civilian use, CE mark, andtechnical regulations
852520910: apparatusused in satellite earthstation, for broadcast or
televisionDittoTN/MA/W/25/Add.2
Page 34
Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
852713100: recording orbroadcasting apparatusDitto
852713910: recording or
broadcasting  apparatusDitto
852713990: recording or
broadcasting apparatusDitto
852719000: other
broadcasting reception
apparatusDitto
852721200: combined
with sound recording orreproducing apparatusCE mark, technical regulations
852731910: other
recording or reproducingapparatusFor military use, license
issued by Ministry ofEconomic Affairs;For civilian use, CE mark, and
technical regulations
852731980: other
recording or reproducingapparatusDitto
852739800: other radio-
broadcast receiversDitto
852812200: coloured
reception apparatus for
television with video
recorderDitto
852812520: reception
apparatus for color TV,with a diagonalmeasurement of thescreen not exceeding
42cmDittoTN/MA/W/25/Add.2
Page 35Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
852990400: parts fortelevision camerasDitto
852990720: parts for
wireless pagersDitto
852990880: parts for
television receiversDitto
853190800: parts for
other electric sound or
visual signalling
apparatusLicense issued by Police
Bureau of Ministry of Internal
Affairs
853690100: electric wire
junctionCE mark and technical
regulations
853690850: otherelectric circuit apparatusFor military use, license
issued by Ministry ofEconomic Affairs;For civilian use, CE mark, and
technical regulations
854011110: coloured
cathode-ray televisionpicture tubes, withdisplay not exceeding42cmCE mark and technical
regulations
854011150: coloured
cathode-ray television
picture tubes, withdisplay from 52cm to72cmDitto
854091000: parts for
cathode-ray tubesFor military use, license
issued by Ministry ofEconomic Affairs;
For civilian use, CE mark, and
technical regulationsTN/MA/W/25/Add.2
Page 36
Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
854389790: electricalmachines and apparatuswith individual functionsCE mark and technical
regulations
854420000: co-axialcable and other co-axialelectric conductorsFor military use, license
issued by Ministry ofEconomic Affairs;
For civilian use, CE mark, and
technical regulations
854441900: other cables Ditto
854451900: other cables Ditto
900319300: frames andmountings for spectaclesof other materialsCE mark and technical
regulations
900410910: sunglasses Ditto
900410990: sunglasses Ditto
900653100: otherphotographic camerasFor military use, license
issued by Ministry of
Economic Affairs;
For civilian use, CE mark, andtechnical regulations
900653900: cameraswith single lens reflex(SLR)Ditto
900912000: colourful
photocopying apparatusCE mark and technical
regulations
900921000: other
photocopying apparatus
incorporating an opticalsystemDitto
900990000: this heading
number not specified byEUDittoTN/MA/W/25/Add.2
Page 37Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
900999000: other partsand accessories of photo-copying apparatusDitto
901780100: other
instruments formeasuring length, for use
in the handDitto
901839000: other
needles for medical useDitto
901890100: stethoscopes Ditto
901910100: massage
apparatusDitto
902212000: computed
tomography apparatusDitto
910219000: other
electrically operated
wrist watchesDitto
2905;2918;2921;2922;29
24-2926;2932-2934;2939;29143010;29242950;29329075;29329077;29394010;29394030;29396010;29396030;29
396050;29399071:
narcotics and otherinhibitory drugsImport licensing controlTN/MA/W/25/Add.2
Page 38
Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
Goods for military andcivilian use, nationaldefense articles,chemicals and bio-materials used in
producing biochemical
weapons of massdestruction; nuclearmissiles, equipment andtechnologies;technologies and matters
used in manufacturing
missilesDitto
Hazardous articles (UN
hazardous articles list)Ditto
40122090: used tyres Ditto
854380800: electrical
fishing devicesDitto
Article of cultural value,
wild animals, captured
animals, products
manufactured with wildanimals and organsthereof; articles ofgeological value, colorphoto-copying apparatus;
narcotics;Non-automatic licensing is
required when these
commodities are exportedTN/MA/W/25/Add.2
Page 39Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
Seeds; fertilizers;pesticides; plants andvegetable products; foodproduced fromvegetables and mixed
materials; food produced
from animals (diaryproducts, poultry andfish products); foodadditives and mixturesthereof;Health quarantine measures
Bicycles Anti-dumping Section II-A
Weapons, explosives,
nuclear materials, drugs,
optical apparatus,alcohol, tobacco, oilproducts, food, electronicproducts, articles for
children, make-up,
building materials,machinery, furniture, andtextile productsLicense, product certificate,
animal/plant health quarantineNone Part IV-A &
Part III-C
Arms and ammunition Import license is required
from Ministry of FinanceDitto
Radioactive materials
and nuclear reactorApproval of Commission of
Atomic Energy is required.
As for those for medical
purpose, FDA is in charge ofthe issue in accordance withFederal Law of Food, Drugsand Cosmetics .Ditto
Household appliance Law of Energy Policy and
ProtectionTN/MA/W/25/Add.2
Page 40
Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
Small & medium-sizedair conditioner andheating equipment, airheating stoves, multi-functional boilers, large
electronic motor (200
horsepower), etcEnergy Implementation
Criteria
Toilet faucet, kitchenfaucet, gravity box toilet,Flushing box toilet,dissolution toilet,electronic-mechanical
water pressure toiletRelevant regulations by
Ministry of Energy andFederal Commission of Trade.Ditto
Toys Federal Law of Dangerous
ArticlesDitto
Paints with lead Ditto Ditto
Bicycles and helmets Federal Law of Dangerous
Articles ;
Legal Certificate is requiredfrom Safety Commission of
Consumer Goods.Ditto
Fireworks and signalling
flaresFederal Law of Dangerous
ArticlesDitto
Fabric products Law of Combustible Fabric Ditto
Cigarettes and lighters Safety Law of Consumer
GoodsDitto
Building glaze, matches,
TV cable antenna, handmower, householdchemicals, and fridge
door etc.Relevant regulations and
safety criteriaTN/MA/W/25/Add.2
Page 41Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
Electronic products (TV,micro-wave oven,medical X-rayequipment, laserproducts, ultrasonic
apparatus, and others
with radiating functions)Radiation Control for Health
& Safety Law  (1968), (Part V
of Federal Law of Food,
Drugs and Cosmetic )
Radio, cassette recorder,
TV, walkie-talkie forcivilian useRegulations of Radioactive
Criteria  by FCC, under .
Telecommunications Law(1934).
drugs and cosmetics Federal Law of Food, Drugs
and Cosmetics;
Commodities under FDA need
to be examined.Part III-B&C
Bio-drugs for human and
animal useImport of those for human use
must comply wit h Federal
Law of Public HealthServices;
Import of those for animal use
should comply with Law of
Virus, Serum and Toxin.Import license of thecommodities is required;Special labelling is needed
when importing the
commodities.
Narcotics, and theirderivativesRegulations of Drugs
ImplementationAdministration  by Ministry of
Justice
Devices for narcoticdrugsFederal Code Part III-BTN/MA/W/25/Add.2
Page 42
Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
Gold and silver  National Law of Marking
pesticide Federal Law of Insecticide,
Bactericide and Raticide
Toxic substance Law of Toxic Substance
Administration
Dangerous products Law of Dangerous Products;
Law of Corrosive Drugs; Lawof Food, Drugs and
Cosmetics; Law of Production
Safety of the Consumers; and
Law of Resource Recycling &Protection;Import of wastes needs EPAcertificate.
Textile products Authentication Law of Textile
Products;
Agricultural Law( 1956)
provides that the import of thecommodities should comply
with the requirement in term
of import quota, exportlicensing and fibbercomponent, etc.
Wool products Labelling Law of Wool
Products ( 1939)
Leather products (valued
over 7USD)Labelling Law of Leather
Products
Motor vehicles, traffic
equipmentFederal Criteria of Traffic
Safety;
Clean Air LawTN/MA/W/25/Add.2
Page 43Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
Aquatic products Inspection criteria of aquatic
products by FDA;Health and plant healthmeasures.China’s export of aquatic
products and honey
Fabric, gloves, luggagewith outer surface of
chemical fibber,
brassiere, pyjama andgownTrade relief measures China’s export of the
commodities
Bike Import licenses
Electronic fan Limitation of customs
valuation
lights Raising the standards far
beyond the necessary level
All products Case by case Cargo inspection
Textile, Clotheres 2002/61/EC Directive bans the
use dyes with aromatic amines
>30ppmTechnical
regulations
and standards(Part III:B)
Certain Productsincluding Aluminum foil,bicycle, footwear andetc.Anti-dumping measures 1.461billion Euro trade Anti-dumping
duties(Part II:B)Anti-dumping
Agreement
Steel products Safeguard measures
All products General Product Safety,
2001/95/ECTechnical
regulations
and standards(Part III:B)
Electric Products Electromagnetic
Compatibility, 89/236/EEC,92/31/EEC, 93/68/EECDitto
Low voltage equipment 73/23//EEC, 93/68/EEC, dittoTN/MA/W/25/Add.2
Page 44
Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
Simple Pressure Vessels 87/404/EEC, 90/68/EEC ditto
Toys HS9501, 9502,950388/378/EEC, 93/68/EEC Ditto
Construction Products 89/106/EEC, 93/68/EEC Ditto
Machinery 98/37/EEC, 93/68/EEC Ditto
Personal protective
equipment89/686/EEC, 93/95/EEC,
96/58/EC, 93/68/EECDitto
Non-automatic weighing
instruments90/384/EEC, 93/68/EEC Ditto
Active implantable
medical devices90/384/EEC, 93/68/EEC Ditto
Appliances burning
gaseous fuels90/396/EEC, 93/68/EEC Ditto
Hot-water boilers fired
with liquid or gaseousfuelsEfficiency requirements,
92/42/EECDitto
Explosive for civil uses 93/15/EEC Ditto
Medical devices 93/42/EEC, 98/79/EC,
2000/70/ECDitto
Equipment for use in
potential explosive
atmospheres94/9/EC Ditto
Packaging and packaging
waste94/62/EC Ditto
Lifts 95/16/EC Ditto
Pressure equipment 97/23/EC Ditto
In virtro diagnostic
medical devices98/79/EC Ditto
Radio equipment and
telecommunicationsterminal equipment1999/5/EC Ditto
Marine equipment 96/98/EC, 98/85/EC DittoTN/MA/W/25/Add.2
Page 45Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
Household electricrefrigerators, freezersand combinations thereofEfficiency requirements,
96/57/ECDitto
Transportable pressure
equipment1999/36/EC Ditto
Equipment for use
outdoorsNoise emission, 2000/14/EC Ditto
Ballasts for fluorescent
lightingEnergy efficiency
requirement, 2000/55/ECDitto
Medicinal products for
human use HS3001-30042001/83/EC Ditto
Veterinary medicinal
products HS3001-30042001/82/EC Ditto
Cosmetics 76/768/EEC Ditto
Chemicals 76/769/EE C, 1999/45/EEC Ditto
Electronic & electronic
equipmentCOD(2000)158, 159 Ditto
lighters Additional requirement of
safety equipmentLimitation of import
towels Extension of safeguards
investigationInfluence the imports Quantitative
restrictions
and importlicensing (PartIV:A)ATCVI/13
Many products Implementing Export Trade
RegulationsImpede the non-military
users importExport
restraints (PartIV: G)
eels Discriminatory practices to
extend quarantine time and
increase quarantine fee withadditional itemsDamage the normal trade
and make the China
export of eels to zeroTesting and
certification
arrangements(Part III:C)TN/MA/W/25/Add.2
Page 46
Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
salt Monopoly , Federal Law on
sales of saltState trading,
governmentmonopolypractices (PartI: E)
Home electric appliance,
e.g. washing machineExcessive documents are
required in the inspection
process.increase burdensome cost
to exporter and impede
commercialconfidentialityTechnical
regulations
and standards(Part III:B)Eliminate such
requirement
SDH equipments Long testing time to enter the
networksLimit trade Ditto
Auto, natural rubber Limitation of ports for imports Limit import Customs
formalities(Part II: G)Eliminate
CDMA equipments Long testing time to enter the
networksLimit trade Technical
regulations
and standards
Steel productsHS7208-7210-7211-7219-7220-7225-7226751/MPP/Kep/11/2002
Import licensing processLimit imports Quantitative
restrictionsand importlicensing
(Part III: A)Modify the article
4, 5 of theMinisterial Decree
Many products 05/DJPLN/KP/Iii/2002 Limit imports Quantitative
restrictionsand importlicensing(Part III: A)Minimize the
scope of theDecree
textile 732/MPP/KEP/70/2002 Limit imports Quantitative
restrictions
and import
licensing(Part III: A)Modify the article
2TN/MA/W/25/Add.2
Page 47Maintaining
ParticipantProducts affected by
the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 45 6 7
Many products 104/MPP/KEP/2/
2002Limit imports Government
Procurement(Part I:C)Abolish the
Decree
DVD Standards and intellectual fee Increase production cost Part III: B,C
DVD Ban on importsTN/MA/W/25/Add.2
Page 48
II. MALAYSIA
Maintaining
ParticipantProducts affected
by the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 4 5 6 7
Participant A Steel Imposition of tariffs of up to 30 per
cent for steel products for a period ofthree years under the Section 201 ofthe Trade Act of 1974 effective from
20 March 2002.
The aggregation of steel product
categories into major broad productgroups (to show injury) isinconsistent as Malaysia’s steel
products were already levied an anti-
dumping duty of 7.51 per cent.Trade harassment
Natural Rubber
GlovesThe importation of natural rubber
gloves are subject to labelingrequirement.  However, gloves andmedical equipment made from
synthetic rubber are exempted from
this requirement, even though theyare made under the same method andhave similar protective chemicals asfound in natural rubber.
Requirement to appoint its own
agent.Increases cost of exports
Tropical Fruits Phytosanitary requirement pertaining
to disinfestations of fruit fliesprohibits the import of Carambola(star fruit).SPS AgreementTN/MA/W/25/Add.2
Page 49Maintaining
ParticipantProducts affected
by the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 4 5 6 7
Tropical Timber The proposal by legislators of a City
Council to amend the administrativecode of the City involving citycontracts related to the purchase ofwood products and materials will
restrict the usage of tropical wood in
public buildings.  The legislation willrequire City Agencies to purchasetropical  hardwood and tropical
hardwood  products from responsibly
managed forests only, specifically,
wood that is certified by the Forest
Stewardship Council
The proposed restriction is
discriminatory, as it singles out
tropical timber for certification, while
other woods are not subject to it.
Participant B All products The Parliamentary approval of a law
on international quality label for'ethically produced goods'.  The lawis for the Promotion of SociallyResponsible Production.  Goods
could carry the label if
producers, from sub- contractors tomanufacturers, abide by ILOguidelines in the manufacturingprocess. The scheme, althoughvoluntary, requires social audit firms,
approved by the Member’s Ministry
of Economy, to check on thecompanies for conformity in the useof the label.TN/MA/W/25/Add.2
Page 50
Maintaining
ParticipantProducts affected
by the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 4 5 6 7
The application of specific labellingrules in one Member State, althoughvoluntary, could become a hindrancefor Malaysian exporters, as well asimporters and traders supplying to
other Member States. Unilateral trade
actions to promote labour standardsto satisfy domestic concerns willcreate discrimination against non-labelled products from Malaysia andrestrict market access.
Electrical and
Electronic
EquipmentThe directive concerning the disposal
of waste from electrical & electronic
equipment is a barrier to trade as theE&E industry is located mainly indeveloping countries. The additionalcosts incurred will affect the
competitiveness of E&E products from
developing countries.  Wastemanagement is a state responsibilityand collection charges should be basedon the “polluter-pays” principle.Additional costs to
industryTBT AgreementTN/MA/W/25/Add.2
Page 51Maintaining
ParticipantProducts affected
by the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 4 5 6 7
Poultry Products Stringent rules on food quality,
packaging and labelling for foodproducts imported into MemberStates. Sanitary regulations alsoencompass rules pertaining to
equipment and materials used to
process and pack the food.(Obtaining approvals involvestedious and substantialdocumentation and bureaucraticprocedures.  One Malaysian
Company took 2 years to obtain
approval).SPS Agreement
Fish and Fishery
ProductResort to local regulations to
determine allowable limits of harmfulorganisms present in the consignmentor make disputed interpretation of the
Regulation even though the
companies have complied with theHACCP.
TechnicalproductsExporting of technical products to the
markets of this Participant has tocomply with the CE marking.   Toqualify for the CE mark, the products
have to undergo rigorous testing and
approval procedures for performanceand safety.  Prices of importedproducts become more expensive anduncompetitive as a result of highercost incurred in fulfilling the
stringent standards set.TN/MA/W/25/Add.2
Page 52
Maintaining
ParticipantProducts affected
by the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 4 5 6 7
Stainless steel buttweld fittingNeed to comply with Pressure
Equipment Directive (PED)requirements by May 2002.
Participant C Green Purchasing The law on Promoting Green
Purchasing, implemented on 1 April2001, has designated several products
of export interest to Malaysia, the
procurement of which will need tocomply with the law. The lawenforces stringent ‘evaluationcriteria’, such as recycling and reuse,and minimal impact on the
environment upon disposal.
The relevant Participant’s Ministry ofEnvironment has set an unrealistictarget on suppliers to meet 100 percent of the evaluation criteria by the
end of 2001 in the government
procurement of a substantial numberof items.TN/MA/W/25/Add.2
Page 53Maintaining
ParticipantProducts affected
by the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 4 5 6 7
The affected products are paper,printed materials, stationery(including mechanical pencils, ball-point pens and ink pads), officefurniture (such as chairs, desks,
shelves and storage furniture), office
machines (in particular, copiers,computers, printers, facsimilemachines, scanners and magneticdisc-drive units), consumer E&Eappliances, lighting items, uniforms
and work clothes, interior fixtures (in
particular, curtains, carpets andblankets) and work gloves.
Adapting to the new evaluationcriteria requires time and changes tothe manufacturing process. The
enforcement of the law on green
purchasing has adversely affectedMalaysian SME, as the set‘evaluation criteria’ are difficult tocomply with, depriving them of theirmarket.TN/MA/W/25/Add.2
Page 54
Maintaining
ParticipantProducts affected
by the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 4 5 6 7
PersonalComputersA programme to place eco-friendly
labels on personal computers (PC) bythe Member’s ElectronicsInformation Technology IndustriesAssociation beginning September,
2001, although voluntary, has
adversely affected smaller Malaysianmanufacturers.This programme inevitably createsdiscrimination in the PC market, asPC displaying the eco-friendly labels
are deemed to be environment
friendly against those without thelabels.
The Participant’s law on recyclingmandates manufacturers to collectused home appliances, and charge
recycling fees. The law also requires
that 50 to 60 per cent of materials inthe appliances be recycled. TheAuthorities have subjected corporate-use and home-use PC to recycling bythe end of 2002.  The mandatory
recycling law incurs additional costs
to Malaysian exporters. It hasdiscouraged distributors and retailersfrom importing from Malaysia, infavour of domestically producedproducts that have recycling
facilities.TN/MA/W/25/Add.2
Page 55Maintaining
ParticipantProducts affected
by the barrierNature of the barrier Tr ade Effects of the
barrierInventory
categoryRelevant WTO
provisionTreatment of the
barrier
12 3 4 5 6 7
The stringent recycling law favoursdomestic and multinationalcompanies that have strong financialresources. Malaysian owned brand ofelectrical appliances and PC from
SME face the danger of being pushed
out of the Member’s market.
Medical DevicesandPharmaceuticalPotential exporters of medical
devices and pharmaceuticals to thisMember need to undergo a lengthyapproval process due to itslongstanding practice of limiting the
acceptance of foreign clinical data.
They are required to conductduplicative clinical trials within thejurisdiction of the importing Member.Lack of transparency in and access to
decision-making processes of this
Participant are longstanding problemsin the medical device andpharmaceutical sector.
Food andbeverage productsDespite progress in recent years, the
Participant’s import clearanceprocedures remain slow and
cumbersome.  User fees remain high
and customs processing hours ofoperation are short.
Participant D Strict Import
Regulation onFood ProductsExports of food products to this
Participant are subject to complicatedpre-approval procedures, involvingsubmission of detailed documents,
including formulae and recipes.Restrictive
practicestolerated byGovernment.TN/MA/W/25/Add.2
Page 56
Maintaining
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The approval  procedure for a newadditive is difficult and timeconsuming, as the rules only allowspecifically listed additives to be usedin food procedures. Although the
Participant has procedures for
obtaining recognition for foreigngovernment or authorisedcertification, the time required,massive paperwork and complicatedprocedures involved discourage
Malaysian exporters from applying.
The preferential customs treatment
given to this Participant’s TouristSupply Centre further restricts thesupply of foreign food products todomestic hotels.TN/MA/W/25/Add.2
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The importation of medical devicesinto the territory of this Participant issubject to strict regulations, namely:
− submission of confidential
information, such as
description of manufacturing
processes, materialspecifications and contentinformation;
− additional local tests;
− non-transferable import
licence and a repetition ofthe approval procedure if thename of the importer differs;
− repeated approval procedure
if there are product
modifications, improvement,
upgrade or minor variances,without change in safetyfeatures and function; and
− massive documentation,
including test report.TN/MA/W/25/Add.2
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Participant E Hitox or White
Titanium OxideLack of uniformity in customs
valuation has subjected hitox or whitetitanium oxide exports to thisParticipant to different rates of duty,depending on the port of entry,
including arbitrary determination of
customs value.  The CustomsAuthorities at a certain port of thisParticipant insists that hitox be taxedsimilar to white titanium dioxide,valued at US$2000 per metric tonne,
instead of its actual value, at
US$1000 per metric tonnne.
Pottery A Malaysian pottery manufacturer
has been affected adversely by thelack of enforcement of intellectualproperty rights (IPR) by this
Participant. The company has
stopped exporting ceramic pottery tothis Participant, due to non-protectionof its product designs, even thoughthe company has its patent rights inthe territories of said Participant.
Local producers had rampantly
copied the Malaysian designs andproducts, and the same designs arebeing exported to Switzerland andAustralia at cheaper prices, comparedwith the original products from
Malaysia.TN/MA/W/25/Add.2
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Food slicers in Malaysia reported thatits products were copied in thisParticipant’s territory. Although theMalaysian company filed a lawsuitagainst five companies and won the
case, due to inadequate protection of
IPR, it has stopped exporting to thesaid Participant.
Application for company registrationis more tedious for foreign ownedthan domestically owned companies.
The registered paid-up capital is also
higher for foreign than localenterprises.  For instance, a whollyowned domestic training company isrequired to deposit only US$3,600 in
a bank account to set up a company.
A foreign joint venture or whollyowned training company must haveUS$120,000 in a bank account beforea company licence is granted.TN/MA/W/25/Add.2
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Opening ofLetters of CreditThrough ThirdPartyDomestic companies authorised to
issue letters of credit (LC) requireforeign suppliers to submit details ofbusiness contracts made between theimporters comprising nationals of
this Participant and Malaysian
exporters before issuing the LCs inUS dollars. The practice of issuingLC only through authorisedcompanies and compelling suppliersto reveal information about business
deals to third party is against fair
business ethics.
Goods Difficulties in determining standards
applicable to goods due to the non-standardised customs as well asinconsistent evaluation by the local
State Administration for Commodity
Inspection housed at different portsof entry.  In the case of goods forwhich this Participant has not yet setits own standards, the standards ofthe country of origin are usually
applied.   This practice has caused
confusion among officials and delaysin cargo clearance at various ports ofthis Participant since differentstandards are applied to a particularproduct.TN/MA/W/25/Add.2
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More rigorous safety and inspectionprocedures applied to Malaysianproducts, compared with similardomestically produced products.  Attimes, the specific agency assigned to
conduct inspection is unclear.  As a
result, cargo clearance at the port ofentry is delayed until the customsofficers resolve the issue and subjectexporters to additional tax charges.
Palm Oil Different VAT rates are imposed on
RBD palm oil and processed palm
kernel oil as compared to soyabean
oil and coconut oil;VAT rates  :
RBD palm oil :17 per cent
Processed palm kernel oil:17 per cent
Crude and processed soybean oil:13per centProcessed Cocoa products:8.3% -16.6%Eliminate this
discriminatory
treatment between
different oils atthe same level ofprocessing.
Participant F Ceramic tiles Req uires pre-shipment inspection
(PSI)
Certain types of ceramic tiles are still
classified as an import restricted item.
Plastic FeedingBottlesExport of Plastic Feeding Bottles is
subject to a mandatory productcertification scheme and high testingfees.  The feeding bottles exported bythe same company to the US, Europe,
Japan, West Asia and other countries
do not face such a requirementComplex procedures and
exorbitant cost has madeit impossible to marketthis product.TN/MA/W/25/Add.2
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The cost involved in obtaining acertificate is exorbitant.
Licence is renewed subject to
periodic inspections, factory visit and
independent testing of samples.
Applicants have to pay the cost oftesting and visits for 2 officials i.eairfare, local transports,accommodation and visa charges.
Severalparticipants
from one
regionAll Products Trade documents for exports to a
group of Participants/WTO
applicants are subject to endorsement
by their respective embassies. Thesedocuments are required to be certifiedby the local chambers of commerceand the Malaysian Ministry of
Foreign Affairs before being
endorsed by the embassies of theseParticipants. These procedures causeunnecessary delays to Malaysianexporters outside of Kuala Lumpur.
The endorsement fees charged are
high and vary with differentembassies.TN/MA/W/25/Add.2
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PharmaceuticalProductsStrict registration requirements for
the import of pharmaceuticalproducts.  Exports of Malaysianpharmaceutical products to thisregion have to undergo various
technical studies, such as stability
study, bio-equivalent study andvalidation process.
As pharmaceutical products arehighly regulated, in terms of quality,safety and effectiveness, each ofthese Participants or WTO applicants
has its own regulations and
regulatory control system.
One Participant from this region
requires all pharmaceuticals and
medicinal products to have a
Certificate of Free Sale, issued by theDepartment of Health.TN/MA/W/25/Add.2
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Malaysian pharmaceuticalmanufacturers are required to adhereto Good Manufacturing Practices(GMP), certified by internationalbodies, such as the US Food and
Drug Administration, Australia
Therapeutic Goods Administrationand UK Medicines Control Agency,and product certification by thedeveloped countries to be able toexport to this region.  Malaysian
produced drugs, registered and
licensed by the Drug  ControlAuthority of the  Ministry  of  Health,Malaysia,  are  not recognised.These  requirements, together with
the non-standardised conditions, in
terms of quality, safety regulationsand technical specifications, placeMalaysian pharmaceuticalmanufacturers, particularlymanufacturers of generic drugs, at a
disadvantage.TN/MA/W/25/Add.2
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Participant G All products Foreign companies are required to
enter into an agreement with a localagent, which gives the right to thelatter to monopolise the distributionof the products and services of the
principal in the agency territory,
which could be either all of theParticipant’s territory or parts of it.Only one agency agreement isallowed for the same product andservice.  The termination of an
agency agreement is cumbersome and
difficult, as only the CommercialAgencies Committee, under theMinistry of Economy and Commerceis authorised to terminate the
agreement.
Foreign companies are not allowed to
enter into new agency agreementswith other agents for the sameproducts or services unless theprevious agreement has beenterminated with the approval of the
Commercial Agencies Registrar of
the Minister of Economy andCommerce.
All products The purchasing practices of the
Federal and sub-FederalGovernments often restricts foreign
exporters.  Local manufacturers are
given priority.TN/MA/W/25/Add.2
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All products Foreign companies who wish to
undertake business activities in thisParticipant must either:
− Establish a joint venture
with its nationals
− Appoint commercial
agents, or
− Set up branch offices.
− Except for companies in
the free zones, at least
51% of a business
establishment must beowned by its nationals.
− A business engaged in
importing anddistributing a product
must be either a 100%
locally-owned agency /distributorship or a 51%locally-owned – 49%(foreign) limitedliability company
(LLC).
− Foreign nationals are
also not allowed to ownland and property.
Pressure vessels& boilersChamber of Commerce & industry
license and Municipality license.TN/MA/W/25/Add.2
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Parts, equipmentand machineryLaw requires a local sponsor to
conduct business and generally thesponsor is the agent, representative ordistributor of the foreign company.Contractors of civilian projects are
not allowed to import directly and
must purchase the required parts,equipment and machinery from localagents.
Participant H Certain specified
productsRegulated products exported to this
Participant must be pre-inspected byagents from this Participant, Intertek ,
a Singapore-based company, for the
issuance of Certificates ofConformity (CoC), to comply withdomestic ruling.  The process toobtain the CoC is time consuming
and costly as the agent for Malaysia
is located in Singapore.TN/MA/W/25/Add.2
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All products Commercial regulations restrict
importing and direct commercialmarketing within the territory of thisParticipant to its own nationals andits wholly-owned companies.
Foreign exporters must appoint
agents to represent them in theterritory of this Participant.
In case of any dispute, termination of
an agency  agreement will be difficult
and time consuming. Many
companies handle numerous productlines, making it difficult to promoteall products effectively.
Participant I Customs
Clearance
ProceduresSGS duplicates the functions of the
customs authorities and complicates
the clearance process. Both agencies
do not communicate effectively andproducts remain at the port or airportfor extended periods.
All Products The government requires importers to
obtain formal import authorization(Demande Descriptive d'Importation
- DDI) from the Central Bank if the
import value exceeds US$ 5,000.TN/MA/W/25/Add.2
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Participant J Many products Under the Import and Export Control
Act, 1963, the Minister of Trade andIndustry may act in the nationalinterest to prohibit, ration orotherwise regulate imports.
The list of restricted goods requiring
import permits has been reduced butstill includes goods such as :
− fish and dairy products
(health concern)
− petroleum products
(strategic concerns)
− Montreal protocol
chemicals (internationalobligations)
− pneumatic tyres (quality
specifications)
− footwear (WTO quota)
− firearms and
ammunition (safetyconcerns)
In 1996 the government introducedan Industrial Participation Program
(IPP) under which all government
and parastatal purchases or leasecontracts (goods, equipment andservices)  in excess of US$ 10 millionare subject to an Industrial
Participation (IP) obligation.TN/MA/W/25/Add.2
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This obligation requires theseller/supplier to engage incommercial/industrial activityequaling or exceeding 30% of theimported content to total goods
purchase under government tender.
Exporters/suppliers have 7 years todischarge the obligation and non-performance will carry a 5% penaltyon the outstanding IP obligation.
Participant K Several products Maintenance of a "negative list" of
prohibited items that require special
permission to import. The list
includes:
− precious and
semiprecious gems
− gold jewelry
− carbonated beverages
for resale
− textiles and clothing for
resale
Participant L Palm Oil Custom Clearance Procedure
− Extensive test of
products at customs
point and test result has
to be sent to its capitalto be endorsed by thehead of its StateCustoms Committee
Palm Oil (H.S Code
:1511901900, solid fractionof palm oil, others) is one ofthe selected products.TN/MA/W/25/Add.2
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Participant M Palm Oil Dietary guidelines under the
Australian Heart Foundation “Tick –a – Pick” Scheme.
Participant N Palm Oil RBD Stearin is not considered edible.
Blending of edible oils are notallowed
Stationary All imports into the territory of this
Participant has to certified by
Inspectorate, a company appointed bythe government.  No amendment isaccepted once the inspectioncertificate was issued, even thoughthe content was wrong.
Participant O Toiletries Requires certificate of free sales,
certificate of analysis and certificate
of composition.
Ceramic Tiles Requires pre-shipment inspection
(PSI).
Participant P Toiletries Requires certificate of free sales,
certificate of analysis and certificateof composition.
Requires product certificate issued by
Ministry of Health.Permission form issued by theDirector of  Petroleum Resources.TN/MA/W/25/Add.2
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Participant Q Palm oil milling
machinery andspare partsGoods need to be inspected by SGS:
- price interference
- indifferent attitude and
lack of manpower tohandle the inspection
- insufficient time
allocation to completethe inspection to meetshipment deadline.
Participant R Palm oil milling
machinery andspare partsGoods need to be inspected by SGS:
- price interference
- indifferent attitude and
lack of manpower to
handle the inspection
insufficient time allocation tocomplete the inspection to meetshipment deadline.
Participant S Ceramic tiles Due to the high inflation rate, the
local government requires all LCs to
be based on a minimum of 360 days.
Participant T Fluorescents
lampsMassive documentation and high cost
of endorsement fee. Certificate oforigin needs to be certified by theirconsulate in Kuala Lumpur and costRM400 to RM600.
Participant U Pressure vessels
& boilersAD-Merklatter HP-O Certification.
Participant V All products Legal enactments are not clear with
many grey areas. This often resultedin differing interpretation amongdepartments and officials.
Agreements signed are sometimes nothonored, recognised and enforceable.TN/MA/W/25/Add.2
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Participant W Service Charge for
Export ReceiptsBusinessmen have to bear with a 20%
across-the-board government servicecharge for all export receipts, whichare collected by the banks.  As aresult, the business community
prefers to do barter trade to avoid this
service charge.
Participant X Waterworks
equipment e.g.meters, stopcocksand brass fittingsShipping Regulation
When trading using Letter of Credit(LC), some local banks or customersspecify that goods to be delivered tothis Participant must be by using its
own flagged vessel. Failing which a
waiver has to obtained from theConsular Office of the Participant inKuala Lumpur.  In most cases, thereare no flagged vessels of the
Participant available in Malaysia.
Tyres Limited testing facilities
Participant Y Food and
CosmeticProductsExporters of food products need FDA
permit. The process takes time. FDAapproval is required even forexhibition.
All products Regulations to a large extent are in
the local language of this Participantand this requires engaging local
consulting companies for translation.
Compliance to
IndustrialStandardsMandatory testing for electrical items
and iron and steel products.Currently, there are two types ofstandards i.e. compulsory standardsand voluntary standards, whichcovers over 1,000 items.TN/MA/W/25/Add.2
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These Compulsory Standards cover73 products i.e. 1 agriculturalproduct, 18 civil and constructionmaterials, 12 consumer products, 15electrical and engineering items, 3
fluid and engineering items, 1 food
item, 1 heat transfer engineeringproduct, 4 medical items, 3 paints,colors and varnishes, 13 vehiclesproducts and 1 chemical product.
Importation of these productsrequires import permits.
Complicated process and time taken(40 days excluding testing time) isdeliberately imposed to discourageimports. All applications must be inthe local language which adds to cost
for translation.
In addition to standards, FDA permits
for food, pharmaceutical andcosmetics makes it difficult forexporters.
Brochures and
Printed Materials7Printed materials brought into the
territory of this Participant for free
distribution are subject to import dutyof 20% by weight.TN/MA/W/25/Add.2
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Participant Z Dual Pricing
SystemA dual pricing system exists where
prices are much higher for foreignersthan for locals:Domestic Air faresUtilities (electricity and water)
Telecommunication charges
Entrance fee to public placesAdvertising Rates.
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