Untitled Document

MAFTA Info Kit | Guidelines | Related links

Background

Malaysia and Australia concluded negotiations on the Malaysia-Australia Free Trade Agreement (MAFTA) on 30 March 2012. MAFTA entered into force on 1 January 2013.

MAFTA is a comprehensive agreement comprising 21 chapters encompassing trade in goods, services and investment as well as economic cooperation. It also covers intellectual property rights, e-commerce and competition policy. MAFTA marks another important milestone in Malaysia - Australia economic relations, complementing the already established ASEAN-Australia-New Zealand FTA (AANZFTA).

The main text of the Agreement can be viewed via this link Malaysia-Australia Free Trade Agreement

Trade in goods

The Agreement outlines commitments of both countries on liberalisation of trade in goods. Australia will eliminate 100% of its import tariffs upon entry-into-force on 1 January 2013 while Malaysia will progressively reduce or eliminate import tariffs on 99% of its tariff lines by 2020. Summary of Malaysia's and Australia's offers can be viewed in this document.

If you are importing from Australia, please click this link: Tariff Commitments-Malaysia

Rules of origin

In order to benefit from the preferential tariff rates under MAFTA, exporters need to fulfil the requirements under rules of origin (ROO) which are based on the product specific rules (PSR) as stipulated under Appendix B of the Agreement. You can view the PSR via this link (refer to page 32): Product Specific Rules (PSR)

Under Annex on Operational Certification Procedures (OCP) to Chapter 3 of the Agreement, the ROO requires that:

  • exports from Australia are supported by a declaration of origin (DOO); and

  • exports from Malaysia are supported by a certificate of origin (COO) issued by the Issuing Authority (MITI).

The importer must submit relevant documents to the Customs Authority of the importing Party (Malaysia or Australia) in order to claim forpreferential tariff treatment. Imports into Australia require a COO; while imports into Malaysia require a DOO.

The DOO or COO must contain data requirements as listed in the Appendix on Data Requirements, as follows:

  • name and details of the exporter/producer;

  • declaration by the exporter/producer or their authorised representative that the goods are originating;

  • description of the goods;

  • HS Code (6 digits); and

  • origin conferring criteria.

Documentation is valid for one year after the date on which the DOO was signed or the COO was issued (Article 3.15 of the Agreement).

COO Application

Application for COO has to be made online via this link:
http://newepco.dagangnet.com.my/dnex/login/login.html (You are advised to use either Chrome22 or FireFox16 browser for better user interaction)

Submission of the cost analysis form is required to support your COO application. Once approved by MITI, the cost analysis is valid for 2 years.

The cost analysis application should be made via the same URL:
http://newepco.dagangnet.com.my/dnex/login/login.html (You are advised to use either Chrome22 or FireFox16 browser for better user interaction)

After getting the cost analysis approval from MITI, the next step is to apply for COO (using the URL address mentioned above), print the COO document and send for endorsement by authorised MITI officers at MITI Head office or regional offices. The COO should go together with your consignment.

Declaration of Origin

The DOO can take the form of a declaration on the invoice or company letterhead (OCP Rule 1). The MAFTA does not require a specific format to be used for the DOO on the invoice or company letter head; provided that the Data Requirements are contained in the document.

Any technical issues with regard to online application system, please contact Dagang Net directly at Dagang Net Careline 1300 133 133 or email to careline@dagangnet.com.

You can also view MAFTA background as reference via this link:
http://tms.dagangnet.com.my/elearning/files/backgrounder_epco_mafta.pdf
(Please also view through Chrome22 or FireFox16 browser for better user interaction)

Services

MAFTA's liberalization of Trade in Services covers: Market Access; Movement of Natural Persons; Mutual Recognition Arrangement; Telecommunication; and Financial Services. For a summary of both Malaysia's and Australia's offers for Services, please click the following link:
Summary of both Malaysia's and Australia's offers for Services

For Malaysian Service Providers
Australian Schedule of Specific Services Commitments

For Australian Service Providers
Malaysian Schedule of Specific Services Commitments

Both countries have also made commitments in the area of Movement of Natural Persons.
For Malaysian Service Providers
Australian Schedule of Movement of Natural Persons Commitments

For Australian Service Providers
Malaysian Schedule of Movement of Natural Persons Commitments

Economic Cooperation and Programmes

Under MAFTA, both countries have also agreed on a number of areas of cooperation:

  1. Automotive - Creating opportunities for Malaysian and Australian component suppliers to participate in commercial exploitations of R&D; and assist the Malaysian automotive industry to develop capacity of trainers to deliver high quality, best practice training to individual workers within the sector including 3R (recycling, reduce and reuse) initiatives.

  1. Tourism - Assist Malaysia in the development/implementation of a tourism industry accreditation scheme to improve quality of Malaysia's tourism products with a specific focus on ecotourism.

  1. Agriculture - Assist Malaysia in the development of phytosanitary e-certification.

  1. E-Commerce - Assist Malaysia in the development of its new Office of the Commissioner for Personal Data Protection and in the initial stage of the implementation of its Personal Data Protection Act.

  1. Clean Coal Technology - Assist Malaysia in developing carbon capture and storage technology project for the purpose of reducing carbon dioxide emissions from thermal power plants.

Contact Person

Enquiries on MAFTA can be directed to:

Mardiana Mohd Yusof
FTA Policy and Negotiations Coordination Division
Ministry of International Trade and Industry (MITI)
Level 5, Block 10
Government Offices Complex
Jalan Tuanku Abdul Halim, 50622
KUALA LUMPUR
Tel: 03 - 6200 0315 
Fax: 03 - 6201 7784 
Email: mardianamy@miti.gov.my or allfta@miti.gov.my