FMM Institute (475427-W), Penang Branch
LICENSED MANUFACTURING WAREHOUSE
(LMW) LICENSING,FACILITATION &
CONTROL
15 October 2014 , Wednesday
9.00AM – 5.00 PM
Training Venue:
E&O Hotel, Pulau Pinang
SBL SCHEME
CLAIMABLE FROM PSMB
INTRODUCTION
The purpose of having LMW is to enable manufacturer to set up its factory within the warehouse. It is
primarily intended for export oriented market whose entire production or not less than 80% are meant for
export. LMW factories can be established anywhere in the principal customs area. This makes it different
from FREE INDUSTRIAL AREAS which have to be gazette & near the port .LMW gets the same tax benefits as
FIZ such as total tax exemption for its raw materials/components/machinery/equipment which is used
directly in the production.
OBJECTIVES
Upon completion of the course, participants will be able to:




Understand the concept, guidelines, laws and regulations with regards to LMW;
Understand the application procedures for license & customs duties exemption;
Enable manufacturer to have a more realistic cost analysis on his manufactured product as
element of customs tax exemption is being well taken care of. Hence enable the manufacturer to
market his products at a more competitive price.
To also understand other facilities granted by Royal Malaysian Customs with regards to LMW
holders
Contents
1) Eligibility
 Factories which are qualified for LMW status. Criteria used.
2) Application for license
 Procedures to apply for LMW license. Checklist, supporting documents and forms used for
submission of application for license. New format of LMW license & fee. Procedures for renewal of
license.
3) Customs duties exemption on raw materials, components, machinery & equipment
 How to apply for duties exemption, formats used for application & relevant section of the laws
pertaining to claim of duties exemption.
4) Manufacturing aids
 To explain types of manufacturing aids which are qualified for duties exemption
5) Non-exemption of customs duty
 To explain goods which are not qualified for customs duties exemption
6) Role of Customs
 Role of customs officers on enforcement. Visit & auditing of records by senior officer of customs.
Disposal of manufacturing wastes, obsolete parts, rejected finished goods, defective raw materials,
machinery & equipment etc.
7) Responsibilities of a licensee
 Record keeping, payments of customs duties for local sales, scraps.
 Submission of monthly returns on usage of raw materials, sales of finished products i.e for EXPORT,
LMW, FZ , DUTY FREE ISLANDS etc.
8) Subcontract work
 Procedures & types of subcontract work allowed. Format used to apply for subcontract work.
9) Movements of finished goods
 Movements of goods. Documents used for movements of goods i.e LMW to LMW, export, Public
warehouse, domestic sales, duty free shop, foreign diplomats etc.
10) Disposal
 License holder responsibilities on disposal of wastes, rejected finished goods, defective raw
materials, machinery & equipment
11) Export of finished goods through a third party
 Procedures to apply for export through a third party & format used
12) Reimport, re export
 Reimport of finished goods & re export of raw materials ( transfer, sale , return )
13) Remission
 Fire, theft & Loss
14) International Procurement Centre
 How to apply & its conditions.
 Benefits of IPC to license holder
15) 7 Value added activities
 What are 7 value added activities & its advantages to the licence holder
16) Trading activities
 Licensed holders are allowed to do trading. What are the criteria & benefits.
17) Authorized Economic Operator (AEO)
 How to apply for AEO status & its benefits to the licensed holder
18) Tax policy on local sales
 Consumer goods & Intermediate goods.
 Payment of tax based on CEPT rate. How to apply for CEPT rate.
 Latest Government policy on local sale to include Product Specific Rule (PSR)
 Sales tax payment to be based on actual import duty paid & not payable
19) Offences
 Types of offences commonly committed by licensed holder
20) Penalties for non-compliance
 Types of penalties. Sections of the laws pertaining to penalties.
21) Receiver & Liquidator
 Responsibilities of a receiver & liquidator on licensed holder
22) Latest updates of LMW
 New value added activities allowed for LMW holder ( re-manufacturing, repairing & servicing)
23) Discussion on current issues on LMW
 Participants are encouraged to raise questions on issues & problems with reference to LMW
24) Conclusion
 Pros & Cons of LMW as compared to manufacturers having tax exemption under sec.14.2, Customs
Act 1967 & sec.10(a), Sales Tax Act 1972.
THE FACILITATOR
Mr Goh Kin Siang is the Deputy Director of Customs, rtd. He has 35 years of working experience in many areas
such as import, export, sales tax, customs port, service tax, excise, drawback and refund, petroleum, finance ,
industry (LMW, Sec 14.2 & Free Zone), preventive etc. He was the Superintendent of Customs Johor Bahru;
Assistant Director of Customs (Internal Taxes) Kuantan; Lecturer Academy Customs of Malaysia, Malacca;
Senior Assistant Director of Customs, Sarawak; Senior Assistant Director of Customs, Export Section, Complex
Customs Tg Puteri, JB; Senior Assistant Director of Customs I & II Industry & Internal Tax Division, Malacca;
Deputy Director of Customs, Headquarters, Putrajaya.
ADMINISTRATIVE DETAILS
COURSE FEE
RM470 (FMM Member) / RM570 (Non-Member) per participant
(The fee includes luncheon, coffee/tea breaks and notes)
DRESS CODE
Office Attire
REGISTRATION
Participation in the program is based on a first-come-first-served
basis. Cheques made in favor of the “FMM Institute” should be forwarded on or
before program date to the FMM Institute, Northern Branch, Bandar Seberang Jaya.
Participant who registered but did not attend, will be billed accordingly. Upon
confirmation, kindly send us the payment before the commencement of the
program.
CANCELLATION
There will be no refund for cancellation within 2 days prior to the program, 50% for
cancellation between 3 – 6 days and full refund for cancellation 7 days prior to the
program. Please inform in writing if you intend to cancel. A replacement can be
accepted at no additional cost.
DISCLAIMER
The FMM Institute reserves the right to change the facilitator, date and
to vary / cancel the program should unavoidable circumstances
arise. All efforts will be taken to inform participants of the changes.
Upon sending the registration form, you are deemed to have read
and accepted the terms and conditions.
ENQUIRIES
Ms Nazliza / Mr Haffiz / Ms Rusmiza
FMM Institute
No 2767, Mukim 11, Lebuh Tenggiri 2, Bandar Seberang Jaya,
13700 Seberang Perai
Tel : 04-6302052 ( Nazliza ) / 04-3992057 ( Haffiz ) / 04-6403050 (Rus)
Fax : 04-6302054 / 04-3994863
Email:
nazliza@fmm.org.my
haffiz@fmm.org.my
CLOSING DATE 8 October 2014
REGISTRATION FORM
LICENSED MANUFACTURING WAREHOUSE (LMW) LICENSING,FACILITATION & CONTROL
( 15 October 2014 / Wednesday/ 9.00 AM – 5.00 PM )
Venue : E&O Hotel, Pulau Pinang.
To : Ms Nazliza / Haffiz/ Ms Rus
( Fax : 04-6302054/04-3994863 / nazliza@fmm.org.my /
haffiz@fmm.org.my / rusmiza@fmm.org.my
Enclosed cheque / bank draft no. ________________ for
RM__________________________
being payment for
participant(s) made in favour of “FMM Institute”
FMM Institute (Penang Branch)
*Submitted By :
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2. Name :______________________________________________
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Company:_____________________________________
Address:______________________________________
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3. Name :______________________________________________
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