Temporary Import & ATA Carnet

Temporary Import is a facility for the temporary importation of goods without payment of customs duty/tax with a security being given to the satisfaction of the Director General of Customs and with a view to subsequent re-exportation in consistent with the provision of Section 97 Customs Act 1967. Temporary Import is stipulated with specific conditions set by RMCD.

The acceptable duration is 3months from the date of import. However, any extension (up to 12 months) needs to be applied prior to the deadline.

Goods are allowed to use the Temporary Import facility with the following purposes:

• Investigation and demonstration
• Exhibitions, performances such as drama, music and circus
• My theme, sport, meeting, conference or similar event
• Evaluation and testing
• To be fixed

The conditions to use the Temporary Import Facilities are as follows:

• Goods cannot be sold or exchanged.
• The same n goods must be re -exported to the country of origin before expiration.
• License / permit must be submitted for goods subject to the Customs (Prohibition on Imports) Order 2017 / Customs (Prohibition on Exports) Order 2017.
• Goods cannot be rented, sold, transferred or destroyed without the permission of the Director of State Customs.

The procedure is as follows:

1. The importer or appointed representative must submit the application form in writing to the Office of the Director of State Customs where the goods will be imported together with supporting documents such as:

• Invoice
• Packing list
• Bill of Lading/Airway Bill
• Authentication Certificate by the end user
• For international level exhibitions, a letter of approval by the Ministry of International Trade and Industry (MITI), exhibition schedule and confirmation letter from the organizer must be attached.
• License/ permit for goods subject to the Customs (Prohibition on Imports) Order 2017/ Customs (Prohibition on Exports) Order 2017

2. Physical inspection will be done by Customs for verification of goods.

The acceptable duration is 3months from the date of import. However, any extension (up to 12 months) needs to be applied prior to the deadline.

If any disposal or sale is done in the country, consent must be applied through RMCD.

In the event the items are not returned back within the approved period, the supposed duties and taxes must be paid at the importing station.

For items to be temporarily imported into Malaysia, the process must be initiated prior to importation. Failure to obtain the proper approval before doing so, will risk importers having to pay the duties and taxes for the importation.

The required documents for Temporary Import are:

• Bank Guarantee Letter
• Temporary Import Approval from Customs
• Commercial Invoice
• Air Waybill

Temporary export is a facility provided to an eligible exporter to export goods for repair, goods for propaganda, research, demonstration purposes and will re-import by claiming import duty/sales tax exemption under the Customs Duty Order ( Exemptions) 2017 and the Sales Tax (Persons Exempt From Payment of Tax) Order 2018 with certain conditions.

Exporters who wish to export goods for repair will get an exemption under item 37 of the Customs Duty (Exemption) Order 2017 and item 36 of the Sales Tax (Persons Exempt From Payment of Tax) Order 2018.
Exporters who carry out propaganda, research and demonstration activities abroad will be exempted under item 39 of the Customs Duty (Exemption) Order 2017..

Exporters who have imported goods and duties/taxes have been paid, temporarily export the goods with the written approval of the Director General of Customs and then re -import the same goods under item 83 of the Customs Duties (Exemption) Order 2017 and item 37 of the Sales Tax (Persons Who Exempt From Payment Of Tax) 2018.

The applicant must submit an application in writing with certain supporting documents to the Director of State Customs where the goods are to be exported for approval by the Director of State Customs on behalf of the Director General of Customs for an exemption claim.

The supporting documents required are:

1. Agent Appointment Letter
2. Goods Invoice
3. Pictures/ Catalogs
4. Complete item description (Item Name/Model/Brand and measurements etc.)
5. Other related documents:
   • Propaganda/Demonstration (Letter from the organizer & Schedule of propaganda/demonstration)
   • Research (Confirmation letter from research body/research institution abroad)
   • Repair (Confirmation from the repair party in the form of a repair report during re -import)

If physical examination is not performed and the goods continue to be exported, the temporary export will be converted to normal export and is not eligible to claim any exemption.

Customs will not entertain any application if there is a claim from the company at a later date.

ATA Carnet is an internationally recognized customs document which allows a shipment to move from one country to another tax and duty free. These shipments must return back to its origin country within 1 year of travelling. Items shipped may be Commercial Samples, Professional Equipment for Movies and Events or Goods for Fair and Exhibitions.

Items that are allowed to be used are:

1. Commercial Sample
2. Professional Equipment (Trading Equipment)
3. Items for exhibition use

Items that are not allowed to be used are:

1. Items that can be damaged or disposable
   
2. Goods that have been sold or offered for sale
3. Gems
4. Goods for the purpose of reprocessing or repair
5. Vehicles
6. Postal traffic

The terms of using the ATA Carnet documents are:

1. Goods cannot be sold or exchanged
2. The same goods must be re -exported to the country of origin before expiration
   
3. Licenses / permits must be submitted for goods subject to the Customs (Prohibition on Imports) Order 2017 / Customs (Prohibition on Exports) Order 2017

Temporary Import and Export is applicable from one country to one country. Whereas for ATA Carnet the goods may be travelling from various countries entering and exiting during the duration of the Carnet. Think Formula One Race Season, Concert Tours, Documentary Filming.

Temporary importation/export using ATA Carnet documents will be processed at the Malaysian exit/entry point. If the goods are taken out through a different station when the goods are brought in, the importer must first inform the original station and vice versa.

The Carnet will be traveling together with the shipment. Upon entering a country, the customs officer will stamp on the counterfoil and remove a voucher from the set. The same process will need to be done for the goods exiting the country.

The shipment will require a physical inspection by customs.

Once inspection is done, the ATA Carnet counterfoil and remaining voucher (certificate sets) will be attached back to the shipment.

The temporary import period using the allowed ATA Carnet document is limited to 3 months from the date it is imported.

The application must be submitted to the Director of State Customs before the original approval period expires.

Yes, it is different in every Gateway.

Applications for ATA Carnet documents for export purposes can be made through the Malaysian International Chamber of Commerce and Industry (MICCI) at the following address:

Executive director

International Chamber of Commerce and Industry

C-8-8, Level 8, Block C, Plaz a Mont Kiara

2 Jalan 1/70C, Mont Kiara

50480 Kuala Lumpur

Tel: (03) 6201-7708

Fax: (03) 6201-770

Website: www.micci.com

Email: ramli@micci.com/adilah@micci.com