. /.   WORLD TRADE  
ORGANIZATION  G/LIC/Q/MYS/5 
10 April 2007 
 (07-1429) 
Committee on Import Licensing Original:   English 
  
 
NOTIFICATION OF REPLIES TO THE QUESTIONNAIRE ON IMPORT LICENSING 
PROCEDURES FROM MALAYSIA
1 
 
Responses from MALAYSIA to Questions from AUSTRALIA2 
 
 
 The following communication, dated 2 April 2007,  has been received from the delegation of 
Malaysia.  
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I. PRODUCTS SUBJECT TO IMPORT LICE NSING ADMINISTERED BY MINISTRY 
OF INTERNATIONAL TRADE AND INDUSTRY (MITI) UNDER CUSTOMS (PROHIBITION OF IMPO RTS) ORDER 1988 - (MINISTRY OF INTERNATIONAL 
TRADE AND INDUSTRY) 
1. Malaysia notes that non-automatic licensing is used for various products under this section 
“to regulate the flow of imports, to promote selected strategic industries” . 
(i) What strategic industries is Malaysia seeking to promote?  
  Malaysia promotes the automotive as well as the iron and steel industries. 
(ii) Which products listed under this section a re subject to quantitative restrictions?  
 Import licensing is applicable to pas senger and commercial vehicles as well as 
motorcycles.  
(iii) How are quotas for each of these products determined?  
 Quotas are determined as a percentage  of total domestic production for the 
 respective industry.  
(iv) In relation to completely built-up mo tor vehicles, how are qualified Malaysian 
companies identified?  
(a) What criteria (e.g. foreign ownership limits) are used to identify who is 
eligible for an import licence? 
Companies must be at least 70% Malaysian-owned. 
                                                     
 
1 See document G/LIC/3, Annex, for the Questionnaire. 
2 G/LIC/4 G/LIC/Q/MYS/5 
Page 2  
 
  (b) What is the objective of limiting import licenses to qualified Malaysian 
companies?  
  To achieve socio-economic objectives 
(v) Are domestic producers consulted at any stage  of the consideration of granting an 
import licence?  
   Yes, for models those are currently under production or expected to be in 
 production.  
II. IMPORTATION OF ROUND CABBAGE AND UNROASTED COFFEE BEANS - 
(FEDERAL AGRICULTURAL MARKETING AUTHORITY (FAMA)) 
4. Malaysia notes that import licensing for these products are implemented for “the purpose of 
affording temporary protection to local c abbage growers and local manufacturers of coffee 
products”.  
 
(vi) How long will this temporary measure be in place? 
 Import license is to ensure the orderl y importation of round cabbages which is an 
important food crop for Malaysian. 
 
(vii) Why is information on requirements for this import license not published? 
(a) Does this mean that global quotas are not published? 
(b) How is the size of the quota established? 
(c) What are the criteria for establishing the quota? 
(viii) How are quotas distributed? 
  Round cabbages
 
 
 The import licence requirements are publis hed in the Malaysian Customs Tariffs 
(Harmonized System). Under Section 1B of  Malaysia’s country schedule in 1995, a 
commitment has been made to import a minimum of 25,812 tonnes of round cabbage 
every year. However, total imports of ro und cabbages into Malaysia often exceed the 
amount committed due to an increase in domestic market demand.  
 Malaysia does not apportion importation of round cabbages by country. Importers are 
free to choose the country from which to import the cabbages. 
   Coffee  
 
 The import licence on coffee bean is for m onitoring purposes only and is issued based 
on demand by importers. No restrictions are imposed on the importation of coffee 
beans.  Processed coffee is not subject to the import licensing requirement. 
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