Re-export is a facility provided under the Customs Act 1967 and the Customs Regulations 1977 given to importers bringing in goods to Malaysia by land, sea or air and are forced to re-export by way of the same or different in accordance with the approval for the unavoidable reasons without being subject to duty / tax. This facility is based on the following categories of goods: -
Goods imported and placed under Customs control but have not yet been approved for release in accordance with Section 75 (C) of the Customs Act 1967 and are not subject to the First Schedule of Customs (Prohibition on Import) 2008 or First Schedule of the Customs (Prohibition on Export) not involved in observation by the Intelligence Branch, in an investigation or suspected of being involved in misappropriation or smuggling.
Goods that have been imported and paid for customs / tax duties are then re-exported pursuant to the duty-free facility and the conditions under Section 93 of the Customs Act 1967.
Goods imported and stored in the Licensed Warehouse undertaking business activities (entreport) pursuant to Regulation 31 of the Customs Regulations 1977 and Excise Regulations 1977. Conditions are attached.
Imported goods that are still in the Free Trade Zone have not been approved by the customs party.
Terms are attached: -
Goods shall have an import / export permit in respect of meeting the conditions specified under section 93 of the Customs Act 1967. The applicant shall submit an application in writing with supporting documents to the Head of the Customs Station where the goods are imported.
The provisions of the Act and Regulations which enable re-export are as follows: -
Section 75 (c) of the Customs Act 1967,
Section 93 of the Customs Act 1967,
Regulation 31 of the Customs Regulations 1977 and
Regulation 32 of the Excise Regulations 1977
Section 75 (C) of the Customs Act 1967
75. Transfer of dutiable goods from a warehouse
No dutiable goods may be transferred from customs control except -
(c) Under such conditions as may be imposed by the Director General, for re-export of Malaysia,
and any goods shall not in any case be transferred from a customs warehouse or any other warehouse approved by the Director General until all rent warehouses and other charges payable in respect thereof have been paid.
Section 93 of the Customs Act 1967,
(1) When any goods, other than items touched by section 95 and section 96, on which customs duties have been re-exported, nine to ten of the duties which are calculated in accordance with subsection (2) may be refunded as a return if -
(a) those goods are to be regarded as satisfactory to a senior customs officer at a customs port or customs airport in which the goods are shipped or loaded for re-export, or at the place of re-export;
(b) returns claimed in respect of any one consortium of goods re-exported not less than fifty ringgit;
(c) the goods are re-exported within twelve months from the date the customs duty is paid;
(d) refunds on items included in the class of goods to be re-exported, which are not prohibited by regulations made under this Act;
(e) a written notice has been given to a senior officer of customs at or before the time of re-export that a claim for return will be made, and the claim is made in the prescribed form and proved to the satisfaction of a senior officer of customs within three months from the date re-export; and
(f) the goods have not been used after the importation.
(2) The allowable redemption amount shall be calculated at the rate of customs duty levied at the time of import, or at the rate of customs duties which may be levied on items of similar nature at the time of re-export of the goods, whichever one is lower.
Regulation 31 of the Customs Regulations 1977
31. Transfer for export
(1) Where the owner of the goods duly charged under this Act or, under the Excise Act with regard to the removal of all or part of a customs warehouse or from a licensed warehouse or from a warehouse licensed under section 65A of the Act or from a duty free shop licensed under section 65D of the Act or from inland depot depot licensed under section 65E for export, the owner shall either itself or through his agent-
(a) Submit to the right customs officer in the warehouse where the goods are kept an application in Customs No. 8 in the Second Schedule for permission to transfer the goods;
(b) Submit to the appropriate customs officer, where applicable, the deposit receipts issued under the provisions of subsection (1) of section 67 of the Act;
(c) Bind a bond or give any other security as may be approved by the customs officer the right to the re-export of the goods;
(d) Pay all charges payable on the goods to be transferred.
(2) The right officer of the customs shall thereupon issue an order authorizing the goods to be transferred on the conditions that in issuing the order the authorized officer of the customs may by note on the order impose such conditions as he may deem necessary to safeguard the result of relief .
(3) No dutiable goods may be transferred by land except by railway through customs main area: Provided that dutiable goods transferred by road may only be transferred with licensed transportation.
(4) The owner of any goods transferred under the provisions of this Regulation or his agent shall produce the evidence required by the customs officer of the right that the goods have been exported, if not the owner of the goods or his agent shall pay forth -and customs duties levied on all or any part of the goods which is not calculated by the satisfaction of the proper customs officer without affecting any conversation under the Act.
(5) Notwithstanding subsection (1), goods from duty free shops may be transferred in such manner as the Director General may determine.
Regulation 32 of the Excise Regulations 1977
32. Transfer of dutiable goods for export
(1) Where the owner of the dutiable goods intends to transfer the goods or any part thereof from a public excise warehouse, a licensed warehouse or a place lessen under section 20 of the Act to be exported, it shall submit to the officer the right of a a bidding application set forth as excise No. 8 in the First Schedule to these Regulations, and such authorized officer shall thereby allow the goods to be removed subject to such conditions as it deems necessary and which shall be noted in the letter of consent for the purpose of safeguarding the safety of Federal revenue.
(2) The owner of any goods transferred under this rule or his agent shall, if required by the rightful officer, produce evidence that the goods have been exported and, if the owner or agent does not produce evidence within a reasonable period, it shall, if there is no evidence otherwise, be deemed to have transplanted such goods unlawfully and, without prejudice to any proceedings which may have been brought against him under the Act, pay in full, upon request by the proper officer, duty levied on the goods.
Conditions for Entreport Business Activity
i. Goods imported and stored in a licensed warehouse carrying on business activities (entreport):
(a) Business activities are in accordance with Rule 31 of the Customs Regulations 1977 and Regulation 32 of the Excise Regulations 1977;
(b) Submit a bond or give any other security as may be approved by the customs officer the right to the re-export of the goods;
(c) Pay all charges payable on the goods to be transferred;
(d) No dutiable goods may be transferred on land except by railway through the customs main area provided that dutiable goods transferred by road may only be transferred with licensed transportation.
Conditions For Goods In The Free Trade Zone
i. For imported goods that are still in the free trade zones that have not been approved for importation:
(a) Goods are not subject to the First Schedule of the Customs (Prohibition on Import) Order 2008 or the First Schedule of the Customs (Prohibition on Exports) Order 2008 and not in any case of misappropriation or smuggling;
(b) Items are re-exported for the following reasons:
Machines / spare parts / Components for repair, calibration and subsequently re-imported;
Re-exported to suppliers because of the problem of the quality of goods that proved to be incompatible with the order specification;
Semi-finished raw materials / Components / articles for use by the Free Industrial Zone in other states;
Empty containers / containers or raw materials to suppliers to refill, recycle and then re-import; and
Incorrect goods that are supported by the evidence received by the Customs as authentic.
The following supporting documents are to be submitted;
Copy of Customs Form No.1,
Copy of Shipping Note
Copy of Invoice
Bill of Lading / Airwaybill
Confirmation of quality of goods (for items returned to suppliers because the quality does not meet the order specification.)
Source from : Customs Malaysia