The Ministry of International Trade and Industry (MITI) would like to refer to the letter to the editor dated 19th May 2009 on the proposal to abolish Import Licence (AP) for vehicles. The Government is currently in the final stages of reviewing the National Automotive Policy (NAP) which also includes the administration of APs for vehicles. Consultations among various ministries and government agencies as well as industry associations have been undertaken to ensure the NAP contributes effectively towards the development of the automotive industry.

In order to strengthen the administration of APs, the Ministry has introduced new administrative guidelines and procedures for Open APs. Open APs are licences which can be used for the importation of used cars. The guidelines were circulated to all AP holders in December 2008. MITI will evaluate companies’ compliance to the guidelines for the allocation of APs.

MITI conducted a first phase of audit on AP holders from August to the end of 2008. The second phase of the audit which began on 10th of March 2009 is expected to be completed in June 2009. The objectives of the audit are:

(i) to assess a company’s performance in terms of management and financial capabilities; and

(ii) to evaluate a company’s compliance to the new guidelines.

The Ministry of International Trade and Industry
22 May 2009