G/LIC/Q/MYS/9  
 
2 May 2014  
(14-2665)  Page: 1/3  
Committee on Import Licensing  Original: English  
 
 IMPORT LICENSING SY STEM OF MALAYSIA 
RESPONSES BY MALAYSIA TO THE QUESTIONS FROM THE UNITED STATES  
 
The following communication, dated 14 April 2014, is being circulated at the request of the 
delegation of Malaysia. 
______________ 
 
Following Malaysia’s Import Licensing notifica tion (G/LIC/N/3/MYS/8) and (G/LIC/N/3/MYS/9), 
Malaysia would like to provide our responses to the questions from the US (G/LIC/Q/MYS/6) as 
follows:  Question 1: The United States greatly appr eciates Malaysia’s conscientious effort to 
respond to the Article 7.3 Annual Questionna ire on Import Licensing, and we commend 
Malaysia for its hard work in this regard. The United States notes that the Secretariat 
circulated to Members both G/LIC/N/3/MYS/8 and G/LIC/N/3/MYS/9 on 
24 January 2014. 
 Question 2:  From G/LIC/N/3/MYS/8, we lear n that importation of an extensive list of 
“selected industrial products is subjected to  import licensing administered by MITI”. 
Please explain further the purpose of these lic ensing requirements for each of the goods 
named in G/LIC/N/3/MYS/8, including the pu rpose of the non-automatic licenses for 
motor vehicles, and how Malaysia considers these requirements consistent with the 
provisions of the Import Licensing Agreement and the GATT 1994. Has Malaysia 
considered methods other than import licensing in the interest of ensuring that the flow 
of imports of these products is not impeded? 
 
Response: The purpose of licensing requirements fo r each of the goods has been provided in the 
notification document in G/LIC/N/3/MYS/8. 
 
For motor vehicles, the issuance of Approved Perm it (AP) is based on company's importation plan 
and to be used by Government for monitoring and data collection purposes. The issuance of AP is consistent with the provisions of the Im port Licensing Agreement and the GATT 1994. 
 
Malaysia has progressively reduced import licensing requirements to facilitate trade and industry. Malaysia will continue to study and conduct consultations with the industries on future elimination 
of import licensing requirements considering national socio-economic and security interests. 
 Q u e s t i o n  3 :   C o u l d  M a l a y s i a  p l e a s e  c o n f irm whether the importation of animals and 
animal products require import licenses? Is  Malaysia using import licenses to verify 
compliance with SPS requirements?  Response: Yes, importation of animals and animal products requires import permit under the 
Malaysia Quarantine and Inspection Services Act 2011(Act 728).   Import permit requirement for the import of animal and animal products are for the purpose of 
monitoring and traceability while SPS is monitored through the certification by the exporting 
country's authority in the Veterinary Health Certificate.  
 G/LIC/Q/MYS/9 
 
- 2 - 
 
  Question 4:  With regard to plant and plant pr oducts, is Malaysia using import licenses to 
verify compliance with SPS requirements?  
Response: Malaysia imposes import permit for certain plant and plant products for monitoring 
purpose. Most of agricultural products for consumption and process do not required import permit.  Q u e s t i o n  5 :   W i t h  r e g a r d  t o  “ R I C E  AND PADDY, GLUTINOUS FLOUR, and RICE 
VERMICELLI, (G/LIC/N/3/MYS/8),” Malaysia states, “The licensing is intended to 
monitor and ensure a stable supply of rice in the country”. Please explain how this 
licensing requirement is justif ied under the Agreement on Import Licensing Procedures.  
Please explain further how such licenses are administered “to ensure a stable supply of 
rice in the country”. 
 
Response: Malaysia does not impose any restrictions on the quantity of imports in relation to 
glutinous rice flour and noodles products and it is subject to domestic demand. Any parties who wish to import these items will only be required to maintain a Wholesalers License, an Import License, as well as obtain an Approved Import Permit from the related department. 
 
For rice, Malaysia has appointed BERNAS as the sole rice importer under a concession agreement 
until 2021. The quantity of import is subject to domestic demand. In lieu of the rights as a sole rice importer, BERNAS is obliged to manage and maintain the national rice stockpile and protect 
public interest. 
 Question 6:  It appears that Malaysia imp oses extensive licensing requirements for the 
“IMPORTATION OF ROUND CABBAGE AND UNROASTED COFFEE BEANS,” as described in 
G/LIC/N/3/MYS/8.  Please explain the purpos e and basis of the licensing requirements 
on these products, including Malaysia’s stat ement that, “This system is to ensure the 
orderly importation of round cabbages and un- roasted coffee beans into the country”?  
Has Malaysia considered any alternative, less complicated means for achieving this 
objective?  
Response: As explained, the purpose of the licensing requirements on round cabbage and 
unfrosted coffee beans are to ensure orderly importation of these products into the country. 
 
For round cabbage, orderly importation is ensured by registering the importers with the Federal 
Agricultural Marketing Authority, where importers will need to submit information regarding their nature of business, facilities such as cold room, ability to import (financial background) and 
relevant business acumen. When importers apply for import license, the information will determine 
the quantity to be approved for importation.  Similarly for unroasted coffee beans, orderly importation is ensured through import licensing when 
only processors of coffee beans that have processing facilities are allowed to import. This is to 
avoid middlemen/monopoly and excessive  profiteering by non-processors. 
 
As such, Malaysia views the system above as not complicated in achieving the objective. 
 Question 7:  Why does Malaysia subject ELECTRICAL EQUIPMENT, (G/LIC/N/3/MYS/8), 
to what appear to be a complicated set of import licensing procedures? With respect to 
electrical equipment, is Malaysia using im port licenses to verify compliance with TBT 
requirements? Is domestically produced el ectrical equipment subject to the same 
technical regulations and certification requir ements as imported electrical equipment?   
 
Response: The import licence for electrical equi pment was introduced to prevent the importation 
of unsafe electrical equipment for public use. Under the Electricity Regulations 1994, no person 
shall manufacture, import, display, sell or advertise any electrical equipment as categorized below 
before obtaining a Certificate of Approval (CoA) from the authority.     
Imported and domestically produced electrical equipment also subject to the same technical 
regulations and certification requirements. Locally manufactured products have to be certified by SIRIM (the Standards Agency) for conformity to Malaysian Standards before the products are allowed to be sold in the local market. G/LIC/Q/MYS/9 
 
- 3 - 
 
  Question 8:  G/LIC/N/3/MYS/8 states th at, with regard to TELECOMMUNICATION 
APPARATUS, “The Customs (Prohibition of  Imports) Order 2008 regulates amongst 
others the importation of telecommuni cation products into Malaysia.” 
  
Are domestic producers of telecommunication s products subject to any procedures “to 
ensure safety, electromag netic compatibility (EMC) and interoperatibility”?  
  
Response: Under the Communications and Multimedia Act, provision 182 and 183, it is an offence 
to use any technical equipment or systems which hinder network interoperability or which 
compromise public safety.  
All telecommunications products needs to be certif ied by certifying agencies registered with the 
Commission (regulator), including agencies outside Malaysia that the products produced comply with the technical standards required before it can be used or installed. 
 
 
__________