Mida wants more businesses to benefit from self-declaration mechanism

KUALA LUMPUR: Malaysian Investment Development Authority (Mida) wants more businesses to benefit from the self-declaration mechanism, which was introduced effective May 2, for exemption through the Customs Duties (exemption) Order 2013 and Sales Tax (exemption) Order 2013.
To date, Mida CEO Datuk Azman Mahmud said a total of 280 companies are enjoying the import duty and sales tax exemption on machinery, equipment, spare parts, consumables, prime movers and container trailers since the inception of the self-declaration mechanism.
Azman said this is part of the business process re-engineering effort by the government to simplify the exemption mechanism.
"It has been well received by the companies where the time taken to clear the goods has been reduced without the necessity of obtaining bank guarantee facilities," he told reporters here yesterday.
He said manufacturers in the principal customs area (PCA), companies engaged in the hotel business and haulage operators can claim the exemption under these Orders through a self-declaration process.
"Businesses can benefit from this mechanism as it does not incur any costs and makes Malaysia a more competitive place to do business," he said.
Under the previous mechanism, he said there was a need to obtain bank guarantee facilities for the clearance of goods (if urgent) while pending decision on the applications submitted to Mida.
He said additional costs were incurred, where businesses need to make interest payment on the bank guarantee, which cost between 0.05% and 0.125% per month.
Azman said the new mechanism requires companies only to submit a confirmation letter issued by Mida together with the list of machinery, equipment, spare parts, consumables, prime movers and container trailers to be imported or purchased to Customs for permission to claim the exemption.