The movement of goods that applies to Malaysian Licensed Manufacturing Warehouse (LMW) environment is as follows:
- Movement of raw materials, components, machines, equipments and spare parts from a place of import to a licensed manufacturing warehouse must be covered by Customs Form No. 1 to be submitted to the Customs at the place of import.
- For finished goods to be exported, licensee is required to submit Customs Form No. 2 at the place of export together with the invoices.
- For finished goods permitted to be sold in the domestic market, submission of Customs Form No. 9 is required. Local sales is regarded as import, and import duty and sales tax are required to be paid in line with Section 65A(3)(b) Customs Act 1967 and Section 7(1)(d) Sales Tax Act 1972 (paid via Form CJ 3) respectively.
- For movement of goods sold to Free Zone Area, Customs Form No. 2 is required at the point of entry.
- For goods sold to another Licensed Manufacturing Warehouse (LMW), the licensee is required to obtain approval before sales is made. Form GPB 1 is used for movement of finished goods to another LMW licensee.
- For LMW goods exported via a trading company using facilities specified in Item 165 Customs Duty (Exemption) Order 1988 and Item 91 of Sales Tax (Exemption) Order 1980, approval will need to be obtained from the State Customs Director where the trading company is situated. In situations where dutiable goods are exported directly from LMW, the usage of Customs Form No. 2 is allowed under the name of the approved trading companies. If the goods purchased by the trading company are transferred to another premise, then the declaration on Customs Form No. 9 is required and the exemption of duties declared as approved. During exportation, the trading company should also declare on Customs Form No. 2 the names and licence of the suppliers as well as approval issued.
Taken from Kastam Diraja Malaysia website