Malaysia Member profile
Status of notification in the reporting periods
2010-2012
2012-2014
2014-2016
2016-2018
2018-2020
2020-2022
2022-2024
2024-2026
Notification information
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Malaysia
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24/10/2023
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2022-2024
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Malaysia
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11/10/2022
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2020-2022
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Malaysia
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21/09/2021
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2020-2022
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Malaysia
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30/09/2020
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2018-2020
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Types of restrictions
All biennial periods and all notifications
Top 10 HS chapters notified
All biennial periods and all notifications
Top 10 WTO justifications notified
All biennial periods and all notifications
Top 10 Non-WTO commitments notified
All biennial periods and all notifications
QR details
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Trade policy review
Latest Trade Policy Review (Report by the WTO Secretariat): WT/TPR/S/436/Rev.1
A. Import prohibitions and restrictions and import licensing
3.34.
Pursuant to subsection 31(1) of the Customs Act, importation of certain goods into Malaysia may be fully prohibited or admitted conditionally. The Customs (Prohibition of Imports) Order 2017, effective since April 2017, remains Malaysia's main legislation for import prohibition and licensing requirements, along with other legislation related to poisonous substances, drugs, chemicals, and security concerns (Table 3.5).
3.35.
The RMCD administers import controls, while other government ministries and agencies are responsible for legislation and approval of licences.[118] The importation of certain goods is prohibited or restricted for reasons of sanitary and phytosanitary (SPS), health, safety, religion, environmental purposes, or Malaysia's compliance with international agreements. The product coverage may change, and the modifications are announced in the Federal Government Gazette. Since the previous Review, the 2017 Order has been amended several times to account for changes in the licensing requirements for various products.[119] Import restrictions also apply to infringing goods, infringing copies, and goods with falsely applied geographical indication. The Trademarks Act 2019 provides restriction on importation of infringing goods (Section 82). The Copyright Act 1987 provides restriction on importation of infringing copies (Section 39). The Geographical Indications Act 2022 provides that importing or selling goods with falsely applied geographical indication is an offence (Section 35).
3.36.
The First Schedule of the Customs (Prohibition of Imports) Order 2017 lists products that may not be imported or transited through Malaysia, mainly for the protection of human health or safety, the environment, or on religious grounds (Table 3.6). One product group – mixed waste and scrap of miscellaneous paper or paperboard – was added to the list in early 2022.[120] The authorities note that this amendment is to ensure the importation of the product into the country is controlled by relevant government agencies and does not contribute to negative externalities to the environment in the long term.
3.37.
Import licence/import permit requirements may be automatic or non-automatic, depending on the product. Licences are also utilized to allocate TRQs (Section 3.1.3.3). According to the authorities, automatic licence/import permit is implemented to collect data or for monitoring purposes. Products subject to automatic licence/import permit include sugar; passenger and commercial motor vehicles; motorcycles; bodies (including cabs) of motor vehicles; chassis and parts thereof for motor vehicles; ships' derricks; semi-finished products of iron and steel, including slab, bloom, and billets; and flat-rolled products of iron or non-alloy steel.[121]
3.38.
The import licensing system is mainly non-automatic. The Customs (Prohibition of Imports) Order 2017 lists three types of situations (schedules) where import licences or permits are issued by the relevant authorities. The import licence is required upon arrival. All types of licence applications may be submitted electronically (ePermit) through the NSW operated by Dagang Net or manually to the licence‑issuing authorities.[122] Once issued, import licences may not be changed, amended, or reused.[123]
3.39.
Items listed in the Second Schedule of the 2017 Order include sugar, rice, radar apparatus, used brakes, unmanufactured tobacco, and all goods originating in (or exported to) Israel (Table A3.3). However, the import controls authorized according to the second schedule do not apply to certain goods destined for Labuan, Langkawi, Tioman, Pangkor, and specified free zones.[124] Most Second Schedule import licences are issued by the MITI, the MOH, or the Ministry of Environment and Water. In 2019, import licences issued by the MITI for the importation of certain iron and steel products were replaced by Certificate of Approval requirements.[125] According to the authorities, importation of certain iron and steel products and steel require a certificate of approval from the Construction Industry Development Board (CIDB) for construction purposes and SIRIM Berhad for non‑construction purposes.
3.40.
The Third Schedule of the 2017 Order, Part I, predominantly lists goods subject to licensing or approval[126] on SPS grounds, but also includes imports restricted for other reasons (e.g. bullet‑proof suits, pepper spray, arms and ammunition, and rough diamonds) (Table 3.7). Licences (or approval) are issued, inter alia, by the Malaysian Quarantine and Inspection Services (MAQIS), the Department of Environment, the Department of Wildlife and National Parks, the Food Safety and Quality Division of the MOH, the Department of National Solid Waste Management, the Ministry of Home Affairs, the Pesticide Board under the Department of Agriculture (DOA), the Malaysia Timber Industry Board, and the Atomic Energy Licensing Board.[127] In many cases, inspection may be required prior to release by the RMCD. Legislation on which the licensing requirements (or approval) include the Malaysian Quarantine and Inspection Services Act 2011, the Plant Quarantine Act 1976, the Plant Quarantine Regulations 1981, the Wildlife Conservation Act 2010, Atomic Energy Licensing Act 1984, the Radiation Protection (Licensing) Regulations 1986, Atomic Energy Licensing (Low Activity Radioactive Material) (Exemption) Order 2020, the Food Act 1983 and Food Regulations 1985, the International Trade in Endangered Species Act 2008, the Animals Ordinance, 1962 (Sabah No. 16 of 1962) (Sabah), the Veterinary Public Health Ordinance, 1999, Cap 32 (Sarawak), and the Environmental Quality Act 1974. For imports into Sabah and Sarawak, permits and approvals are issued by the competent state authorities.
3.41.
The requirements applicable to Third Schedule, Part II items, i.e. cigarettes and alcoholic beverages, do not apply to free commercial zones (FCZs). Part III concerns importation and transit of goods controlled under the International Trade in Endangered Species Act 2008. CITES permits are principally issued by the DOA, the Malaysian Timber Industry Board, or the Department of Fisheries.[128] For goods in transit, each consignment must be accompanied by: (i) a valid export or re‑export permit, licence, certificate, or written permission in accordance with CITES issued by the competent authority of the country of export or re-export; and (ii) where required by the country of importation, a valid import permit, licence, certificate, or written permission, in accordance with CITES, issued by its competent authority.[129]
3.42.
In addition to import requirements regulated by the 2017 Order, Malaysia continues to maintain its AP system for the automobile industry. A company must obtain APs to import foreign‑built or assembled cars, trucks, and motorcycles as part of the National Automotive Policy.[130] The system does not set a maximum number of APs that a company may obtain. The approval for AP is based on the performance, business plan, and financial capability of the company. The MITI introduced a New Open AP policy on 1 January 2019. The new policy is intended to provide opportunities for qualified Bumiputera automotive entrepreneurs to be involved in the industry.[131] The stated purpose of the Franchise AP Policy is to monitor and collect data, as well as to facilitate the participation of Bumiputera in the automotive supply chain.[132]
B. Export prohibitions and restrictions
3.49.
Subsection 31(1) of the Customs Act stipulates that exportation may be prohibited absolutely or conditionally. Export controls, enforced pursuant to the Customs (Prohibition of Exports) Order 2017, apply to a number of products. The stated purposes for export prohibitions or export licensing requirements are mainly to safeguard health, safety, or security; for environmental purposes; or to comply with international agreements.
3.50.
Prohibited exports, enumerated in the first schedule of the 2017 Order, include poisonous chemicals and minerals, and substances covered under the Montreal Protocol. Export licensing requirements apply to products listed in the second schedule of the Order, notably plants and plant products, sugar, cement, and waste and scrap (Table A3.4). The Third Schedule lists products that may be exported subject to certain conditions, including SPS-related requirements for animals and animal products, arms and ammunition, toxic and/or hazardous waste, pesticides, and second‑hand household electronics (Part I). Face masks (surgical/medical) were added to the product list on 20 March 2020 with reference to the Control of Supplies Act 1961, and these export restrictions are still in place.[140] Face masks may be exported with a letter of approval from the Controller of Supplies, Ministry of Domestic Trade and Consumer Affairs. Part II of the Third Schedule covers goods controlled under the CITES, and include terrestrial animals, marine animals, and terrestrial plants (excluding timber except as specified in the CITES).[141]
3.51.
The Strategic Trade Act (STA) 2010, in force since 2011 and last amended in 2017, regulates the export, transhipment, and transit of various strategic items such as arms and related materials in compliance with Malaysia's international obligations stemming from the United Nations Security Council Resolution 1540.[142] The Strategic Trade (Strategic Items) List 2021 contains a comprehensive list of such items.[143] Export licences for such goods are granted by the MITI's strategic trade controller and other relevant authorities which are Atomic Energy Licensing Board, Malaysian Communications and Multimedia Commission, and Pharmaceutical Services Programme. According to the Strategic Trade (Compounding of Offences) Regulations 2022, effective since 1 June 2022[144], any offence committed by any person handling strategic goods prescribed in the Regulations may be compounded. An offer to compound may be made at any time after the offence is committed.
WTO's environmental database (EDB)
The EDB contains environment-related measures that may qualify as QRs and therefore should be notified under the QR Decision.