GUIDELINES AND PROCEDURES FOR APPLYING IMPORT DUTY EXEMPTION
ON AUTOMOTIVE COMPONENTS FOR LOCAL ASSEMBLY VEHICLES

1. As a measure to retain the treatment given for multi-sourcing parts after the multi-sourcing code is abolished, local assemblers and manufacturers will declare the components using its individual code and will be given exemption as follows:

   Rate Under MSP Code (%)	Individual Code		Exemption
   MFN Rate (%)	CEPT Rate (%)
   0	0 - 35	0 -5	Full exemption
   10	> 10 - 35		In excess of 10%
   	< 10		No exemption (pay at current MFN rate)

2. Application Procedure:
   1. Local assemblers should use the relevant forms:-
      1. MSP(2007) and Annex 1-MSP(2007)
         Application for components sourced from principal
         
         
      2. MSP(2007) and Annex 2-MSP(2007)
         Application for components sourced from non-principal
         
         
   2. Copies of the following documents should be attached:-
      1. Manufacturing License and condition issued under the Industrial Coordination Act, 1975
      2. Approval of franchise holder status from MITI
      3. Sales Tax License (CJ2)
      4. Excise Duties License (Excise 1)
         
         
   3. The application should be submitted to:-
      
      Director
      Transport and Metal Industries Division
      Malaysian Industrial Development Authority (MIDA)
      Plaza Sentral, Jalan Stesen Sentral 5
      Kuala Lumpur Sentral
      50470 Kuala Lumpur
      
      
      Tel: 03-22673633
      Fax:03-22748470