INTRODUCTION FOR UNDERSTANDING LICENSED MANUFACTURING WAREHOUSE (LMW)

A Licensed Manufacturing Warehouse is a manufacturing facility licensed under the Customs Act 1967 and its operations and movement of goods are monitored by the Royal Malaysian Customs Department (Jabatan Kastam Di Raja Malaysia). This program will assist manufacturers operating under the jurisdictions of LMW to understand its procedures, practices, compliance and to maximise the benefits provided under the LMW scheme.

OBJECTIVES

By end of this program, participants will be able to:

• Understand deeper on the LMW concept and its practices.
• Facilities, benefits and incentives provided, and activities allowed under LMW.
• Procedures and documentations on LMW.
• The connectivity between the Sales Tax Act and the LMW.

TARGET AUDIENCE

Those program is designed to those who are attach to the logistics, shipping, trade compliance, purchasing, finance and any company employees who are frequent dealers with the Customs Department and its officers.

PREREQUISITES

Participants who are involved in import and export activities, as well as having frequent interactions with the Customs officers on matters related to LMW and its proceedings.

DURATION

2 days (9am to 5pm)

COURSE CONTENT

DAY 1 (9.00AM – 5.00PM)

• Introducing the LMW.
  • What are the legal provisions of the LMW.
  • Objectives of LMW.
  • Application for LMW license.
  • Bank Guarantee/General Bon..
  • LMW license renewal.
  • Type of premise.

• Facilities and incentives under LMW.
  • Exemptions for raw materials and components.
  • Exemptions for machineries, equipment and spare parts.
  • Exemptions for finished goods sales and exports.
  • Additional exemptions allowed on ad-hoc basis.
  • Sub-contract works.

• Goods movement proceedings in LMW.
  • Types of movement of goods.
  • Documents required for movement of goods.
  • Sub-contract work movements.
  • Scrap and waste disposal in LMW.
  • Re-import for repair or rework purpose.
  • Export for repair or rework purpose.
  • Re-export raw materials, machines or equipment to supplier for repair, rework, replacement or due to order cancellation.
  • Goods storage in Public Bonded Warehouse.

• LMW reporting and returns.
  • Monthly reports.
  • Annual reports.
  • Sub-contract reports.
  • Other co-related reports.

• Remissions.
  • What is remissions.
  • Remissions allowed.
  • Provisions for remissions.

DAY 2 (9.00AM – 5.00PM)

• Value-added activities.
  • Types of value added activities.
  • Do and don’t of value-added goods.
  • Terms and conditions.
  • Documentations required.

• Drop Shipment.
  • What is drop shipment.
  • Drop shipment flow.
  • Documents/declarations in drop shipment.

• Methods of sales and the tax implication.
  • Drop ship.
  • Consignment stocks.
  • Export.
  • Export via 3rd party.
  • Samples of various transactions.

• Receivership, liquidation and wind-up.
  • Definition.
  • Provisions for receivership, liquidation, wind-up.
  • Reason of receivership, liquidation, wind-up.
  • Documents required.

• Authorised Economic Operator (AEO).
  • Definition and origin.
  • Benefits of being in AEO.
  • Who can apply for AEO.
  • Goods not accepted under AEO consideration.
  • Conditions prior to AEO application.

• Inspection, investigation, checks (audit) and penalties.
  • Provisions to empower.
  • Penalties for non-compliance.

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