License & Permit

One-Stop Information Centre for Malaysian Timber
Industry Licensing & Permit Application

The one-stop information portal provides the users with a summary of the legal framework of all relevant laws and regulations governing every form of activities along the supply chain of the timber processing industry (i.e. upstream, downstream and export/import) and the permit/license required per activity in Malaysia.

This portal aims to guide the industry players and potential investors in the industry to comply with laws and regulations on the following spectrums:

How to start operating a timber company;
How to import timber products; and
How to export timber products.

Peninsula
Sabah
Sarawak

Peninsula

Select

General Requirements

Company Commission of Malaysia (SSM)
Business entities in Malaysia are encouraged to register with the Companies Commission of Malaysia (SSM) to protect their business when dealing with suppliers and customers while helping you avoid legal problems with the government and taxation issues, among others.

Therefore, users are advised to refer to the type of business entity based on the guideline as follows:

• Starting a Sole Proprietorship / Partnership
• Starting a Company
• Starting a Limited Liability Partnership (LLP)

Timber Specific Requirements

Those who wish to conduct business in the timber industry are required to register with the below to obtain licenses and permits.

Malaysian Timber Industry Board (MTIB)

• Registration Guidelines

General Requirements

License

Land

Factory and Machinery

Worker

Tax

License

• Local Authorities
1. Requirements:
  Having a valid business license is essential for starting a business in Malaysia. Applications for a business / trading license shall be submitted to local councils where the physical premises / factory is located.
2. Documents required:
  The requirements for the license might vary according to each local council (PBT). In general, PBTs require the following documents to be submitted:
  - • Business registration (SSM)
  - • The business location plan
  - • Agreement letter or permission of the building owner (if not owner)
  - • Floor plan of the premises
  - • Certificate of fitness to occupy (CF)
  - • Land grant or official search certificate
3. Where to apply?
  Nearby local authorities

• Ministry of Finance (MOF) License
1. Requirements:
  MOF License Treasury Registration is a prerequisite for companies to participate in government and semi-government procurement tenders and contracts. This license is required of suppliers who wish to supply furniture products to the government.
2. Documents required:
  - • Ensure the company is incorporated as Sdn. Bhd.
  - • Latest 3 months bank statements
  - • Latest 3 months KWSP statements
  - • Company profile stating the details of all directors & shareholders
  - • One set of certified true copy (CTC) form 49, 24, 44 / Section 14, M&A if available and Section 17
  - • One copy of certified true copy (CTC) for Board Resolution to open bank account
  - • Field code for the businesses
  - • A copy of identification for all directors
  - • Relevant academic certificates for directors, if any
  - • Commissioner for Oaths / Attestation on all relevant academic certificates
  - • S&P for office or Tenancy Agreement for office
3. Where to apply?
  Visit the MOF License Registration website: ePerolehan website and submit the required documents for your application

• Manufacturing License (ML) by Malaysian Investment Development Authority (MIDA)
1. Where to apply?
  - • Manufacturing firms with shareholders funds of RM2.5 million and above or employing 75 or more full-time employees:
    Need to apply for a manufacturing license (ML) from the Ministry of International Trade and Industry (MITI). Applications shall be submitted to the Malaysian Investment Development Authority (MIDA), an agency of MITI

1. - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    May apply for an exemption by submitting the ICA10 Form to MIDA. For firms that want to enjoy MIDA’s benefits and incentives, they must have an ML or ICA10.

Land

• Local Authorities
1. Requirements:
  No person shall erect any building without the prior written permission of the local council under Section 70(1) of the Street, Drainage and Building Act 1974. A Principal Submitting Person (PSP) is responsible to get the building plan approved. After construction is completed and essential services provided for, the Certificate of Completion and Compliance (CCC) is issued stating that the building is safe for occupation.
2. Where to apply?
  One stop centre (OSC) 3.0 Plus

Factory and Machinery

• Department of Occupational Safety and Health (DOSH)
1. Requirements:
  - • DOSH is responsible for regulating and enforcing various occupational safety and health rules to ensure that the safety, health, and welfare of the people at work are protected from occupational hazards.
  - • Certifications are required for steam boilers, unfired pressure vessels, hoisting machinery, sand blasting, personal protective equipment, lifts, escalators, dumbwaiters, boiler and pressure vessels and pipelines as well as general machinery.
2. Documents required:
  - • Design drawings
  - • A catalogue of machines
  - • Process flow charts
  - • Safe operating procedures
  - • Data sheets
  - • Certificate of fitness or any certification applicable to the respective machinery
3. Where to apply?
  - • Factory that operates machinery must submit an application and relevant documents for “Permission to Install Machinery” to the nearest DOSH office.
  - • Businesses must submit new applications along with new factory layout every time a new machine is to be installed.

• Department of Environment (DoE)
1. Requirements:
  - • To prevent, eliminate, control pollution and improve the environment.
2. Requirement:
  - • “Competent person” / “certified environmental professional” who has been certified by the Director General of the DOE as stated under Section 49a of the Environmental Quality (Amendment) Act 2012.
  - • This officer is responsible to supervise the operation of a pollution control system or the management of scheduled wastes.
• BOMBA
1. Requirements:
  - • Such premises must have a fire certificate issued by the Malaysian Fire and Rescue Department as required in the Fire Services (Fire Certificate) Regulations 2001 of the Fire Services Act 1988.
  - • New premises must apply for a fire certificate upon obtaining a Certificate of Fitness (CF) or Temporary Certificate of Fitness (TCF) or CCC.
2. Documents required:
  - • Form I
  - • Copy of CCC
  - • Copy of building plan (which has been approved by BOMBA during CCC production)
  - • Copy of sales and purchase agreement
  - • Copy of land title
  - • Copy of assessment
  - • Copy of business license
3. Where to apply?
  Can be made at the BOMBA headquarters or certain BOMBA station based on the location of the building.

Worker

• Ministry of Human Resource (MOHR), Immigration Department of Malaysia
1. 1. General Requirement:
    - • Work in permitted sectors namely Manufacturing, Construction, Agriculture, Plantation and Services;
    - • Applications for foreign workers by employers / companies are subject to quota approval from the One Stop Approval Center (OSC), Ministry of Home Affairs;
    - • Be not less than 18 years old and not more than 45 years old at the time of application;
    - • Certified to pass the Immigration Security Clearance (ISC) certification performed in the source country.
    - • Certified healthy by a health screening center in the source country;
    - • Prospective employees are not included in the list of foreign individuals barred from entering in accordance with Section 8 (3) of the Immigration Act 1959/1963; and
    - • Foreign workers must be recruited from an authorized source country.
  2. Procedure:
    Procedure of application is available here
• Department of Labour of Peninsular Malaysia
• Local Authorities
• Department of Immigration
• Malaysian Investment Development Authority (MIDA)
• KWSP / EPF
• SOCSO
• HRD Corporation
• Minimum Standard for Workers Accommodation
The Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 was enforced to prescribe the minimum standards of housing for estate workers and their families.

Tax

• Royal Malaysian Customs Department (RMCD)
1. Requirements:
  - • Taxable goods manufacturers are required / liable to be registered when sales value of taxable goods has exceeded RM500,000 for 12 months period.
  - • Manufacturers who carry out sub-contract work on taxable goods where the VALUE of work performed exceeds RM500,000 for 12 months period.
  - • Further information is available here
2. Application Procedure:
  Application procedure is available here

Timber Specific Requirements

License

Transportation

Factory / Sawmill License

Manufacturing License

License

- • State Forestry Department
  1. Requirements:
    - • All wood processing mills must be licensed by the State Forestry Department (Section 3 of the Wood-Based Industries Enactments) through Wood-Based Industries (State Legislatures Competency) Act 1984.
    - • This license allows business to site, build, erect, establish, operate and/or maintain the following wood-based industry.
  2. Documents required:
    - • Jadual Pertama form: four copies for the new application
    - • Four layout plans: site mill location, site mill building, design mill building and plants layout
    - • Copy of letter from related agencies
  3. Where to apply?
    - • Manual application to District Forestry Office
    - • The license application is subjected to applicable fees; depending on the type of industry and machines used. Different states impose different fee rates
    - • License to operate wood-based industry will be produced within a period of one month from the complete date of the factory constructed when meets all the conditions approval.

Transportation

• Removal Pass (RP)
1. Requirements:
  - • RP will be issued on site by Balai Pemeriksaan Hutan (BPH) officer for each conveyance load once the timber royalties and fees have been paid.
  - • RP carries a record of the type / species, volume of produce, and the royalty and forest development cess payable
2. Where to apply?
  - • RP is issued by the State Forestry Department upon inspection and payment of royalty
• Land Public Transport Agency (APAD), Road Transport Department (JPJ), PUSPAKOM
1. Requirements:
  - • All vehicles and drivers must comply with the requirements of the Road Transport Act 1987 and Commercial Vehicles Licensing Board Act 1987
2. Documents required to comply:
  - • Vehicle license
  - • Driver license
  - • Vehicle inspection
  - • Vehicle specification guidelines

Factory / Sawmill License

• Factory / Sawmill License
1. Requirements:
  - • All wood processing mills must be licensed by the State Forestry Department (Section 3 of the Wood-Based Industries Enactments) through Wood-Based Industries (State Legislatures Competency) Act 1984.
  - • This license allows business to site, build, erect, establish, operate and/or maintain the following wood-based industry.
  - • The license application is subjected to applicable fees; depending on the type of industry and machines used. Different states impose different fee rates.
2. Documents required:
  - • Application form
  - • Supporting documents
3. Where to apply?
  - • District Forestry Office

Manufacturing License

• Malaysian Investment Development Authority (MIDA)
1. Requirements:
  - • Manufacturing firms with shareholders’ funds of RM2.5 million and above or employing 75 or more full-time employees:
    - • Need to apply for a manufacturing license (ML) from the Ministry of International Trade and Industry (MITI). Applications shall be submitted to MIDA, an agency of MITI
  - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    - • May apply for an exemption by submitting the ICA10 Form to MIDA
  - • For firms that want to enjoy MIDA’s benefits and incentives, they must have an ML or ICA10
2. Where to apply?
  - • MIDA e-Manufacturing Licence (e-ML)

Relevant Acts/Ordinances, Enactments and Regulations

Companies Act, 2016
Business Registration Act 1956
National Forestry Act 1984
National Forestry Act (Amended) 2022
Malaysian Timber Industry Board (Incorporation) Act 1973
Forest (Timber) Enactment 2015 (Sabah)
State Wood-Based Industries Enactment/ Wood-Based Industries Rules
Forest Enactment 1968 / Forest Rules (Sabah)
Forest Ordinance 2015/ Forest Rules (Sarawak)
Sarawak Timber Industry Development Corporation Ordinance, 1973
National Land Code (Revised 2020) (Act 828)
Land Ordinance Chapter 68 (Sabah)
Land Code Chapter 81 (1958 Edition) (Sarawak)
Local Government Act 1976
Local Government Ordinance 1961 (Sabah)
Local Authorities Ordinance 1996 (Sarawak)
Industrial Co-ordination Act 1975 (ICA)
Town and Country Planning Act 1976
Town and Country Planning Ordinance (Sabah Cap 141)
Street, Drainage and Building Act 1974
Buildings Ordinance, 1994 (Sarawak)
Fire Services Act 1988
Factories and Machinery Act 1967
Occupational Safety and Health Act 1994
Environmental Quality Act 1974
Immigration Act 1959/63
Labour Ordinance (Sabah Cap. 67)
Labour Ordinance Chapter 76 (1958 Ed.)
Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990
Emergency (Employees’ Minimum Standards of Housing, Accommodations and Amenities (Amendment) Ordinance 2021
Employees Provident Fund Act 1991
Employees’ Social Security Act 1969
Human Resources Development Berhad Act 2001
Sales Tax Act 2018
Service Tax Act 2018
Financial Procedure Act 1957
Road Transport Act 1987
Commercial Vehicles Licensing Board Act 1987

Background

• Imports into Malaysia is governed by the Royal Malaysian Customs Department (RMCD) which has the power to implement policies and regulations on imports.
• The Malaysian Timber Industry Board (MTIB) is delegated by the RMCD to issue import licenses for timber and timber products for Peninsular Malaysia and Labuan.
• Additional import permits are also required from the Malaysian Quarantine and Inspection Services (MAQIS) Department for Peninsular Malaysia and Wilayah Persekutuan Labuan, Department of Agriculture Sabah and Department of Agriculture Sarawak.
• For goods that are controlled under the International Trade in Endangered Species Act 2008, importers must apply for the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Import Permit.

Timber Specific Requirements

Import License

Import Permit

CITES Import Permit

Import License

• Malaysian Timber Industry Board (MTIB)
1. Requirements:
  - • Under Section 31 of the Act, the Government may prohibit the import of any goods from any specified country, territory or place outside Malaysia either absolutely or conditionally
  - • MTIB is delegated by the RMCD to issue import licenses for timber and timber products.
  - • Import license is valid for 14 days
  - • General import procedure by RMCD
2. Where to apply and documents required:
  - • Information can be accessed through MTIB

Import Permit

• Import Permit
1. Requirements:
  - • The import permit is to regulate the entry of plant and plant products to prevent the entry and spread of pests and diseases brought together with the imported material.
  - • Issues permit for the importation and exportation of live animal and animal product under the legislation of Malaysian Quarantine and Inspection Services Act 2011 (Act728) & Regulations.
  - • The Customs (Prohibition of Imports) Order 2023 was enforced on 15 April 2023 with the amendment on manner of import for the issuance of import permit into Peninsular Malaysia and Labuan from MTIB to MAQIS for poles and piles of Bakau (Rhizophora spp.) as described under item 39 for columns (2) and (3) in Part 1 of the Third Schedule. Any importation approval issued by MTIB before the enforcement of the Customs (Prohibition of Imports) Order 2023 has been nullified.
2. Documents required:
  - • Application will be verified by MAQIS
3. Where to apply?
  - • Application can be made through dagang.net

CITES Import Permit

• CITES Import Permit
1. Requirements:
  - • For goods that are controlled under the International Trade in Endangered Species Act 2008, importers must apply for the CITES import permit.
  - • MTIB is responsible for issuing the CITES Import Permit for Peninsula Malaysia.
  - • When receiving the consignment of goods at the entry point, port or registered landing area, importers can apply for import license from the license issuing agencies.
  - • MAQIS will also carry out physical inspection and quarantine of the consignment to verify the import permit and the phytosanitary certificate from the exporting country.
  - • For approved consignment, importers must pay the service fee to obtain the property hammer mark and the Removal Pass before the consignment can be transported to the designated destination. Fee is not needed in Sarawak for imported timber / logs.
2. Documents required and where to apply:
  - • Application will be accessed through MTIB

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
The Malaysian Quarantine and Inspection Services Act, 2011 [Act 728]
International Trade in Endangered Species Act 2008
Malaysian Timber Industry Board (Incorporation) Act 1973
Customs (Prohibition of Imports) Order 2023

Timber Specific Requirements

Export License / Permit

CITES Permit

Phytosanitary Certificate

Certificate of Origin

Export License / Permit

• Export License / Permit
1. Requirements:
  - • The Malaysian government may prohibit export of any goods to any country, territory or place outside Malaysia either absolutely or conditionally.
2. Guidelines and documents required:
  - • Information can be accessed through MTIB.
3. Where to apply:
  - • Application can be accessed through MTIB Core System.

CITES Permit

• CITES Permit
1. Requirements:
  - • For goods that are controlled under the International Trade in Endangered Species Act 2008, exporters must apply for CITES Export and Re-Export Permit as stated under the Third Schedule of the Order.
2. Where to apply, guidelines and documents required:
  - • Information can be accessed through MTIB.

Phytosanitary Certificate

• Phytosanitary Certificate
1. Requirements:
  - • A major requirement for timber and timber product export is PC.
  - • It is required when shipping regulated articles such as plants, plant products or other regulated articles to the importing country.
  - • This certificate aims to prevent the spread of plant pests and diseases through trade / movement of plants, plant products and regulated articles internationally.
  - • The Department of Agriculture Malaysia is responsible for issuing PC as per requirements of the Plant Quarantine Act 1976 and the Plant Quarantine Regulations 1981.
2. Where to apply, guidelines and documents required:
  - • Information can be accessed here.

Certificate of Origin

• Preferential Certificate of Origin
1. Requirements:
  - • The importing country might request for CO which certifies the origin of the goods.
  - • The Preferential Certificate of Origin (PCO) is a requirement under Free Trade Agreement (FTA) between Malaysia and signing countries.
  - • PCO is issued by the Ministry of International Trade and Industry (MITI), and it allows the importer to claim for preferential tariff rates based on Rules of Origin.
2. Guidelines and process flow to apply for PCO:
  - • MITI
3. Guidelines for ePCO:
  - • MITI
4. Where to apply:
  - • ePCO
• Non-Preferential Certificate of Origin (NPCO)
1. Requirements:
  - • NPCO is required when importing country requests for it.
  - • It is issued by the Malaysian International Chamber of Commerce & Industry (MICCI), Federation of Malaysian Manufacturers (FMM), Sabah Timber Industries Association (STIA), and other chambers and associations authorized by MITI.
2. Guidelines and documents required:
  - • MICCI
  - • MITI

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
International Trade in Endangered Species Act 2008
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
Malaysian Quarantine and Inspection Services (Registration of Importers, Exporters and Agents) Regulations 2013
Free Trade Agreement (FTA) / Generalised System of Preferences (GSP)
Customs (Prohibition of Exports) Order 2017
Sabah Export Royalty on Round Log and Other Charges (Starting from 3 January 2022)

Sabah

Select

General Requirements

Therefore, users are advised to refer to the type of business entity based on the guideline as follows:

• Starting a Sole Proprietorship / Partnership
• Starting a Company
• Starting a Limited Liability Partnership (LLP)

Timber Specific Requirements

Those who wish to conduct business in the timber industry are required to register with the below to obtain licenses and permits.

Sabah Forestry Department (SFD)

• Registration Guidelines

General Requirements

License

Land

Factory and Machinery

Worker

Tax

License

• Local Authorities
1. Requirements:
  Having a valid business license is essential for starting a business in Malaysia. Applications for a business / trading license shall be submitted to local councils where the physical premises / factory is located.
2. Documents required:
  The requirements for the license might vary according to each local council (PBT). In general, PBTs require the following documents to be submitted:
  - • Business registration (SSM)
  - • The business location plan
  - • Agreement letter or permission of the building owner (if not owner)
  - • Floor plan of the premises
  - • Certificate of fitness to occupy (CF)
  - • Land grant or official search certificate
3. Where to apply?
  Nearby local authorities
• Ministry of Finance (MOF) License
1. Requirements:
  MOF License Treasury Registration is a prerequisite for companies to participate in government and semi-government procurement tenders and contracts. This license is required of suppliers who wish to supply furniture products to the government.
2. Documents required:
  - • Ensure the company is incorporated as Sdn. Bhd.
  - • Latest 3 months bank statements
  - • Latest 3 months KWSP statements
  - • Company profile stating the details of all directors & shareholders
  - • One set of certified true copy (CTC) form 49, 24, 44 / Section 14, M&A if available and Section 17
  - • One copy of certified true copy (CTC) for Board Resolution to open bank account
  - • Field code for the businesses
  - • A copy of identification for all directors
  - • Relevant academic certificates for directors, if any
  - • Commissioner for Oaths / Attestation on all relevant academic certificates
  - • S&P for office or Tenancy Agreement for office
3. Where to apply?
  Visit the MOF License Registration website: ePerolehan website and submit the required documents for your application
• Manufacturing License (ML) by Malaysian Investment Development Authority (MIDA)
1. Where to apply?
  - • Manufacturing firms with shareholders funds of RM2.5 million and above or employing 75 or more full-time employees:
    - • With IBK license alone is sufficient for timber industry hence manufacturers do not need to apply for “State Government Approval” (SGA) from the Department of Industrial Development & Research (DIDR) Sabah.
    - • For firms that need an ML or ICA10 (e.g., in order to enjoy MIDA’s benefits and incentives), they will need to obtain letter of approval from DIDR as a pre-condition to apply for ML or ICA10.
  - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    May apply for an exemption by submitting the ICA10 Form to MIDA. For firms that want to enjoy MIDA’s benefits and incentives, they must have an ML or ICA10.

Land

- • Local Authorities
  1. 1. Requirements:
      No person shall erect any building without the prior written permission of the local council under Section 70(1) of the Street, Drainage and Building Act 1974. A Principal Submitting Person (PSP) is responsible to get the building plan approved. After construction is completed and essential services provided for, the Certificate of Completion and Compliance (CCC) is issued stating that the building is safe for occupation.
    2. Where to apply?
      Electronic Planning Permission (ePP) System

• Sabah Lands and Surveys Department

Factory and Machinery

• Department of Occupational Safety and Health (DOSH)
1. Requirements:
  - • DOSH is responsible for regulating and enforcing various occupational safety and health rules to ensure that the safety, health, and welfare of the people at work are protected from occupational hazards.
  - • Certifications are required for steam boilers, unfired pressure vessels, hoisting machinery, sand blasting, personal protective equipment, lifts, escalators, dumbwaiters, boiler and pressure vessels and pipelines as well as general machinery.
2. Documents required:
  - • Design drawings
  - • A catalogue of machines
  - • Process flow charts
  - • Safe operating procedures
  - • Data sheets
  - • Certificate of fitness or any certification applicable to the respective machinery
3. Where to apply?
  - • Factory that operates machinery must submit an application and relevant documents for “Permission to Install Machinery” to the nearest DOSH office.
  - • Businesses must submit new applications along with new factory layout every time a new machine is to be installed.
• Department of Environment (DoE)
1. Requirements:
  - • To prevent, eliminate, control pollution and improve the environment.
2. Requirement:
  - • “Competent person” / “certified environmental professional” who has been certified by the Director General of the DOE as stated under Section 49a of the Environmental Quality (Amendment) Act 2012.
  - • This officer is responsible to supervise the operation of a pollution control system or the management of scheduled wastes.
• BOMBA
1. Requirements:
  - • Such premises must have a fire certificate issued by the Malaysian Fire and Rescue Department as required in the Fire Services (Fire Certificate) Regulations 2001 of the Fire Services Act 1988.
  - • New premises must apply for a fire certificate upon obtaining a Certificate of Fitness (CF) or Temporary Certificate of Fitness (TCF) or CCC.
2. Documents required:
  - • Form I
  - • Copy of CCC
  - • Copy of building plan (which has been approved by BOMBA during CCC production)
  - • Copy of sales and purchase agreement
  - • Copy of land title
  - • Copy of assessment
  - • Copy of business license
3. Where to apply?
  Can be made at the BOMBA headquarters or certain BOMBA station based on the location of the building.

Worker

• Ministry of Human Resource (MOHR), Immigration Department of Malaysia
1. General Requirement:
  - • Work in permitted sectors namely Manufacturing, Construction, Agriculture, Plantation and Services;
  - • Applications for foreign workers by employers / companies are subject to quota approval from the One Stop Approval Center (OSC), Ministry of Home Affairs;
  - • Be not less than 18 years old and not more than 45 years old at the time of application;
  - • Certified to pass the Immigration Security Clearance (ISC) certification performed in the source country.
  - • Certified healthy by a health screening center in the source country;
  - • Prospective employees are not included in the list of foreign individuals barred from entering in accordance with Section 8 (3) of the Immigration Act 1959/1963; and
  - • Foreign workers must be recruited from an authorized source country.
2. Procedure:
  Procedure of application is available here
• Department of Labour of Peninsular Malaysia
• Local Authorities
• Department of Immigration
• Malaysian Investment Development Authority (MIDA)
• KWSP / EPF
• SOCSO
• HRD Corporation
• Minimum Standard for Workers Accommodation
The Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 was enforced to prescribe the minimum standards of housing for estate workers and their families.

Tax

• Royal Malaysian Customs Department (RMCD)
1. Requirements:
  - • Taxable goods manufacturers are required / liable to be registered when sales value of taxable goods has exceeded RM500,000 for 12 months period.
  - • Manufacturers who carry out sub-contract work on taxable goods where the VALUE of work performed exceeds RM500,000 for 12 months period.
  - • Further information is available here
2. Application Procedure:
  Application procedure is available here

Timber Specific Requirements

License

Transportation

Factory / Sawmill License

Manufacturing License

License

- • State Forestry Department
  1. Requirements:
    - • The license application is submitted through the District Forestry Officer together with the application form and other supporting documents. This regulated by Sabah Forest Enactment 1968 and the Forest Rules 1969.
    - • This license allows business to site, build, erect, establish, operate and/or maintain the following wood-based industry.
  2. Documents required:
    - • Jadual Pertama form: four copies for the new application
    - • Four layout plans: site mill location, site mill building, design mill building and plants layout
    - • Copy of letter from related agencies
  3. Where to apply?
    - • Manual application to District Forestry Office
    - • The license application is subjected to applicable fees; depending on the type of industry and machines used. Different states impose different fee rates
    - • License to operate wood-based industry will be produced within a period of one month from the complete date of the factory constructed when meets all the conditions approval.

Transportation

• Removal Pass (RP)
1. Requirements:
  - • RP will be issued on site by Balai Pemeriksaan Hutan (BPH) officer for each conveyance load once the timber royalties and fees have been paid.
  - • RP carries a record of the type / species, volume of produce, and the royalty and forest development cess payable
2. Where to apply?
  - • RP is issued by the State Forestry Department upon inspection and payment of royalty
• Land Public Transport Agency (APAD), Road Transport Department (JPJ), PUSPAKOM
1. Requirements:
  - • All vehicles and drivers must comply with the requirements of the Road Transport Act 1987 and Commercial Vehicles Licensing Board Act 1987
2. Documents required to comply:
  - • Vehicle license
  - • Driver license
  - • Vehicle inspection
  - • Vehicle specification guidelines

Factory / Sawmill License

• Factory / Sawmill License
1. Requirements:
  - • This license allows business to site, build, erect, establish, operate and/or maintain the following wood-based industry.
  - • The license application is subjected to applicable fees; depending on the type of industry and machines used. Different states impose different fee rates.
2. Documents required:
  - • Application form
  - • Supporting documents
3. Where to apply?
  - • District Forestry Office

Manufacturing License

• Malaysian Investment Development Authority (MIDA)
1. Requirements:
  - • Manufacturing firms with shareholders’ funds of RM2.5 million and above or employing 75 or more full-time employees:
    - • Need to apply for a manufacturing license (ML) from the Ministry of International Trade and Industry (MITI). Applications shall be submitted to MIDA, an agency of MITI
  - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    - • May apply for an exemption by submitting the ICA10 Form to MIDA
  - • For firms that want to enjoy MIDA’s benefits and incentives, they must have an ML or ICA10
2. Where to apply?
  - • MIDA e-Manufacturing Licence (e-ML)

Relevant Acts/Ordinances, Enactments and Regulations

Companies Act, 2016
Business Registration Act 1956
National Forestry Act 1984
National Forestry Act (Amended) 2022
Malaysian Timber Industry Board (Incorporation) Act 1973
Forest (Timber) Enactment 2015 (Sabah)
State Wood-Based Industries Enactment/ Wood-Based Industries Rules
Forest Enactment 1968 / Forest Rules (Sabah)
Forest Ordinance 2015/ Forest Rules (Sarawak)
Sarawak Timber Industry Development Corporation Ordinance, 1973
National Land Code (Revised 2020) (Act 828)
Land Ordinance Chapter 68 (Sabah)
Land Code Chapter 81 (1958 Edition) (Sarawak)
Local Government Act 1976
Local Government Ordinance 1961 (Sabah)
Local Authorities Ordinance 1996 (Sarawak)
Industrial Co-ordination Act 1975 (ICA)
Town and Country Planning Act 1976
Town and Country Planning Ordinance (Sabah Cap 141)
Street, Drainage and Building Act 1974
Buildings Ordinance, 1994 (Sarawak)
Fire Services Act 1988
Factories and Machinery Act 1967
Occupational Safety and Health Act 1994
Environmental Quality Act 1974
Immigration Act 1959/63
Labour Ordinance (Sabah Cap. 67)
Labour Ordinance Chapter 76 (1958 Ed.)
Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990
Emergency (Employees’ Minimum Standards of Housing, Accommodations and Amenities (Amendment) Ordinance 2021
Employees Provident Fund Act 1991
Employees’ Social Security Act 1969
Human Resources Development Berhad Act 2001
Sales Tax Act 2018
Service Tax Act 2018
Financial Procedure Act 1957
Road Transport Act 1987
Commercial Vehicles Licensing Board Act 1987

Background

Effective 1st June 2016, the Sabah Forestry Department has implemented the Forest (Timber) Enactment 2015, a new law to cover for the registration of timber products exporters, timber products importers, timber suppliers for export and jetty operators operating jetties for loading and unloading of timber products, following the transfer of the power to issue export and import licences for timber products from the Malaysian Timber Industry Board (MTIB) to the Sabah Forestry Department. The principal law is supplemented by the Forest (Timber)(Registration) Regulations 2017 and the Forest (Timber) (Compounding of Offences) 2017.

Timber Specific Requirements

Import License

Import Permit

CITES Import Permit

Import License

- • Sabah Forestry Department (SFD)
  1. Requirements:
    - • Under Section 31 of the Act, the Government may prohibit the import of any goods from any specified country, territory or place outside Malaysia either absolutely or conditionally
    - • Importers can apply for import licenses from SFD
    - • Import license is valid for 14 days
    - • General import procedure by RMCD
  2. Documents required:
    - • Procedure for importation by SFD
  3. Where to apply?
    - • Application procedure can be accessed through SFD

Import Permit

• Import Permit
1. Requirements:
  - • The import permit is to regulate the entry of plant and plant products to prevent the entry and spread of pests and diseases brought together with the imported material.
  - • Issues permit for the importation and exportation of live animal and animal product under the legislation of Malaysian Quarantine and Inspection Services Act 2011 (Act728) & Regulations.
  - • The Customs (Prohibition of Imports) Order 2023 was enforced on 15 April 2023 with the amendment on manner of import for the issuance of import permit into Peninsular Malaysia and Labuan from MTIB to MAQIS for poles and piles of Bakau (Rhizophora spp.) as described under item 39 for columns (2) and (3) in Part 1 of the Third Schedule. Any importation approval issued by MTIB before the enforcement of the Customs (Prohibition of Imports) Order 2023 has been nullified.
2. Documents required:
  - • Application will be verified by MAQIS
3. Where to apply?
  - • Application can be made through dagang.net

CITES Import Permit

• CITES Import Permit
1. Requirements:
  - • For goods that are controlled under the International Trade in Endangered Species Act 2008, importers must apply for the CITES import permit.
  - • SFD is responsible for issuing the CITES Import Permit for Sabah.
  - • When receiving the consignment of goods at the entry point, port or registered landing area, importers can apply for import license from the license issuing agencies.
  - • MAQIS will also carry out physical inspection and quarantine of the consignment to verify the import permit and the phytosanitary certificate from the exporting country.
  - • For approved consignment, importers must pay the service fee to obtain the property hammer mark and the Removal Pass before the consignment can be transported to the designated destination. Fee is not needed in Sarawak for imported timber / logs.
  - • Guideline for can be accessed through Department of Agriculture (DOA)
2. Documents required and where to apply:
  - • Application can be accessed through Department of Agriculture

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
The Malaysian Quarantine and Inspection Services Act, 2011 [Act 728]
International Trade in Endangered Species Act 2008
Malaysian Timber Industry Board (Incorporation) Act 1973
Customs (Prohibition of Imports) Order 2023

Timber Specific Requirements

Export License / Permit

CITES Permit

Phytosanitary Certificate

Certificate of Origin

Export License / Permit

• Export License / Permit
1. Requirements:
  - • The Malaysian government may prohibit export of any goods to any country, territory or place outside Malaysia either absolutely or conditionally.
2. Guidelines and documents required:
  - • Information can be accessed through Sabah Forestry Department (SFD).
3. Where to apply:
  - • License application is required manually to the District Forestry Officer.

CITES Permit

- • CITES Permit
  1. Requirements:
    - • For goods that are controlled under the International Trade in Endangered Species Act 2008, exporters must apply for CITES Export and Re-Export Permit as stated under the Third Schedule of the Order.
  2. Where to apply, guidelines and documents required:
    - • Sabah Forestry Department (SFD)

Phytosanitary Certificate

• Phytosanitary Certificate
1. Requirements:
  - • A major requirement for timber and timber product export is PC.
  - • It is required when shipping regulated articles such as plants, plant products or other regulated articles to the importing country.
  - • This certificate aims to prevent the spread of plant pests and diseases through trade / movement of plants, plant products and regulated articles internationally.
  - • The Department of Agriculture Malaysia is responsible for issuing PC as per requirements of the Plant Quarantine Act 1976 and the Plant Quarantine Regulations 1981.
2. Where to apply, guidelines and documents required:
  - • Information can be accessed here.

Certificate of Origin

• Preferential Certificate of Origin
1. Requirements:
  - • The importing country might request for CO which certifies the origin of the goods.
  - • The Preferential Certificate of Origin (PCO) is a requirement under Free Trade Agreement (FTA) between Malaysia and signing countries.
  - • PCO is issued by the Ministry of International Trade and Industry (MITI), and it allows the importer to claim for preferential tariff rates based on Rules of Origin.
2. Guidelines and process flow to apply for PCO:
  - • MITI
3. Guidelines for ePCO:
  - • MITI
4. Where to apply:
  - • ePCO
• Non-Preferential Certificate of Origin (NPCO)
1. Requirements:
  - • NPCO is required when importing country requests for it.
  - • It is issued by the Malaysian International Chamber of Commerce & Industry (MICCI), Federation of Malaysian Manufacturers (FMM), Sabah Timber Industries Association (STIA), and other chambers and associations authorized by MITI.
2. Guidelines and documents required:
  - • MICCI
  - • MITI

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
International Trade in Endangered Species Act 2008
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
Malaysian Quarantine and Inspection Services (Registration of Importers, Exporters and Agents) Regulations 2013
Free Trade Agreement (FTA) / Generalised System of Preferences (GSP)
Customs (Prohibition of Exports) Order 2017
Sabah Export Royalty on Round Log and Other Charges (Starting from 3 January 2022)

Sarawak

Select

General Requirements

Therefore, users are advised to refer to the type of business entity based on the guideline as follows:

• Starting a Sole Proprietorship / Partnership
• Starting a Company
• Starting a Limited Liability Partnership (LLP)

Timber Specific Requirements

Those who wish to conduct business in the timber industry are required to register with the below to obtain licenses and permits.

Sarawak Timber Industry Development Corporation (STIDC)

- • Registration Guidelines

General Requirements

License

Land

Factory and Machinery

Worker

Tax

License

• Local Authorities
1. Requirements:
  Having a valid business license is essential for starting a business in Malaysia. Applications for a business / trading license shall be submitted to local councils where the physical premises / factory is located.
2. Documents required:
  The requirements for the license might vary according to each local council (PBT). In general, PBTs require the following documents to be submitted:
  - • Business registration (SSM)
  - • The business location plan
  - • Agreement letter or permission of the building owner (if not owner)
  - • Floor plan of the premises
  - • Certificate of fitness to occupy (CF)
  - • Land grant or official search certificate
3. Where to apply?
  Nearby local authorities

• Ministry of Finance (MOF) License
1. Requirements:
  MOF License Treasury Registration is a prerequisite for companies to participate in government and semi-government procurement tenders and contracts. This license is required of suppliers who wish to supply furniture products to the government.
2. Documents required:
  - • Ensure the company is incorporated as Sdn. Bhd.
  - • Latest 3 months bank statements
  - • Latest 3 months KWSP statements
  - • Company profile stating the details of all directors & shareholders
  - • One set of certified true copy (CTC) form 49, 24, 44 / Section 14, M&A if available and Section 17
  - • One copy of certified true copy (CTC) for Board Resolution to open bank account
  - • Field code for the businesses
  - • A copy of identification for all directors
  - • Relevant academic certificates for directors, if any
  - • Commissioner for Oaths / Attestation on all relevant academic certificates
  - • S&P for office or Tenancy Agreement for office
3. Where to apply?
  Visit the MOF License Registration website: ePerolehan website and submit the required documents for your application

• Manufacturing License (ML) by Malaysian Investment Development Authority (MIDA)
1. Where to apply?
  - - • Manufacturing firms with shareholders funds of RM2.5 million and above or employing 75 or more full-time employees:
      To get the ML, a supporting letter from the Industrial Coordination Committee (ICC) under the Ministry of International Trade, Industry and Investment (MINTRED) Sarawak is required.
  - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    They need to get the ICC’s manufacturing approval. Application for ICA10 requires the manufacturing approval as supporting document.

Land

• Local Authorities
1. Requirements:
  No person shall erect any building without the prior written permission of the local council under Section 70(1) of the Street, Drainage and Building Act 1974. A Principal Submitting Person (PSP) is responsible to get the building plan approved. After construction is completed and essential services provided for, the Certificate of Completion and Compliance (CCC) is issued stating that the building is safe for occupation.
2. Where to apply?
  Applicants must send their application to the Land and Survey Department for consideration and approval of State Planning Authority (SPA)
• Sarawak Lands and Surveys Department

Factory and Machinery

• Department of Occupational Safety and Health (DOSH)
- 1. Requirements:
    - • DOSH is responsible for regulating and enforcing various occupational safety and health rules to ensure that the safety, health, and welfare of the people at work are protected from occupational hazards.
    - • Certifications are required for steam boilers, unfired pressure vessels, hoisting machinery, sand blasting, personal protective equipment, lifts, escalators, dumbwaiters, boiler and pressure vessels and pipelines as well as general machinery.
  2. Documents required:
    - • Design drawings
    - • A catalogue of machines
    - • Process flow charts
    - • Safe operating procedures
    - • Data sheets
    - • Certificate of fitness or any certification applicable to the respective machinery
  3. Where to apply?
    - • Factory that operates machinery must submit an application and relevant documents for “Permission to Install Machinery” to the nearest DOSH office.
    - • Businesses must submit new applications along with new factory layout every time a new machine is to be installed.

• Department of Environment (DoE)

- 1. Requirements:
    - • To prevent, eliminate, control pollution and improve the environment.
  2. Requirement:
    - • “Competent person” / “certified environmental professional” who has been certified by the Director General of the DOE as stated under Section 49a of the Environmental Quality (Amendment) Act 2012.
    - • This officer is responsible to supervise the operation of a pollution control system or the management of scheduled wastes.

BOMBA

1. Requirements:
  - • Such premises must have a fire certificate issued by the Malaysian Fire and Rescue Department as required in the Fire Services (Fire Certificate) Regulations 2001 of the Fire Services Act 1988.
  - • New premises must apply for a fire certificate upon obtaining a Certificate of Fitness (CF) or Temporary Certificate of Fitness (TCF) or CCC.
2. Documents required:
  - • Form I
  - • Copy of CCC
  - • Copy of building plan (which has been approved by BOMBA during CCC production)
  - • Copy of sales and purchase agreement
  - • Copy of land title
  - • Copy of assessment
  - • Copy of business license
3. Where to apply?
  Can be made at the BOMBA headquarters or certain BOMBA station based on the location of the building.

Worker

• Ministry of Human Resource (MOHR), Immigration Department of Malaysia
1. General Requirement:
  - • Work in permitted sectors namely Manufacturing, Construction, Agriculture, Plantation and Services;
  - • Applications for foreign workers by employers / companies are subject to quota approval from the One Stop Approval Center (OSC), Ministry of Home Affairs;
  - • Be not less than 18 years old and not more than 45 years old at the time of application;
  - • Certified to pass the Immigration Security Clearance (ISC) certification performed in the source country.
  - • Certified healthy by a health screening center in the source country;
  - • Prospective employees are not included in the list of foreign individuals barred from entering in accordance with Section 8 (3) of the Immigration Act 1959/1963; and
  - • Foreign workers must be recruited from an authorized source country.
  - • Approval is needed from the Localisation Committee
  - • Member of the committee are Chief Minister’s Office, Labour Department, Immigration Department and STIDC.
  - • STIDC is member of the localization committee meeting. They process the letter of recommendation based on Immigration Department and Labour Department and State Localization Committee requirement. For those company they must registered with STIDC first.
2. Procedure:
  - • Employers need to prepare the supporting documents e.g SSM, manufacturing license, etc.
  - • Employers / companies need to sign up at msen3.sarawak.gov.my
  - • Employers / companies need to activate the employers’ account at JTK Sarawak after signing at msen3 website.
  - • An email will be sent to activate the account and related form will be provided for the employers/companies to fill in.
  - • Employers / companies need to go through an interview with SOCSO
  - • Employers / companies need to advertise the job position to the potential local workers. If no local citizens are interested with the job offered, employers may proceed with the foreign workers application.
  - • A report will be retrieved by JTK Sarawak and table to the localization committee for approval.
  - • Further information is available here

• Department of Labour of Peninsular Malaysia
• Local Authorities
• Department of Immigration
• Malaysian Investment Development Authority (MIDA)
• KWSP / EPF
• SOCSO
• HRD Corporation
• Minimum Standard for Workers Accommodation
The Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 was enforced to prescribe the minimum standards of housing for estate workers and their families.

Tax

• Royal Malaysian Customs Department (RMCD)
1. Requirements:
  - • Taxable goods manufacturers are required / liable to be registered when sales value of taxable goods has exceeded RM500,000 for 12 months period.
  - • Manufacturers who carry out sub-contract work on taxable goods where the VALUE of work performed exceeds RM500,000 for 12 months period.
  - • Further information is available here
2. Application Procedure:
  Application procedure is available here

Timber Specific Requirements

License

Transportation

Factory / Sawmill License

Manufacturing License

License

• State Forestry Department
1. 1. Requirements:
    - • Sarawak handling all mill licenses expect for sawmill license under Section 62 of the Forest Ordinance 2015.
  2. Documents required:
    - • Jadual Pertama form: four copies for the new application
    - • Four layout plans: site mill location, site mill building, design mill building and plants layout
    - • Copy of letter from related agencies
  3. Where to apply?
    - • Manual application to District Forestry Office
    - • The license application is subjected to applicable fees; depending on the type of industry and machines used. Different states impose different fee rates
    - • License to operate wood-based industry will be produced within a period of one month from the complete date of the factory constructed when meets all the conditions approval.

Transportation

• Removal Pass (RP)
1. Requirements:
  - • RP will be issued on site by Balai Pemeriksaan Hutan (BPH) officer for each conveyance load once the timber royalties and fees have been paid.
  - • RP carries a record of the type / species, volume of produce, and the royalty and forest development cess payable
2. Documents required:
  - • Logs Specification Form (LSF)
  - • Logs Specification Summary (LSS)
  - • Letter of Applications
3. Where to apply?
  - • Harwood Timber Sdn. Bhd. (HTSB) conducts the physical inspection of logs and issues the Endorsement Clearance Certificate (ECC) and the shipping / transportation pass.
  - • This is then followed by issuance of the Removal Pass (transit) by Forest Department of Sarawak before the logs can be transported from the Forest Checking Station either to the mill or to the export point.

• Land Public Transport Agency (APAD), Road Transport Department (JPJ), PUSPAKOM
1. Requirements:
  - • All vehicles and drivers must comply with the requirements of the Road Transport Act 1987 and Commercial Vehicles Licensing Board Act 1987
2. Documents required to comply:
  - • Vehicle license
  - • Driver license
  - • Vehicle inspection
  - • Vehicle specification guidelines

Factory / Sawmill License

• Factory / Sawmill License
1. Requirements:
  - • Sarawak handling all mill licenses expect for sawmill license under Section 62 of the Forest Ordinance 2015.
2. Documents required:
  - • Application form
  - • Supporting documents
3. Where to apply?
  - • Sarawak Timber Industry Development Corporation

Manufacturing License

• Malaysian Investment Development Authority (MIDA)
1. Requirements:
  - • Manufacturing firms with shareholders’ funds of RM2.5 million and above or employing 75 or more full-time employees:
    - • Need to apply for a manufacturing license (ML) from the Ministry of International Trade and Industry (MITI). Applications shall be submitted to MIDA, an agency of MITI
  - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    - • May apply for an exemption by submitting the ICA10 Form to MIDA
  - • For firms that want to enjoy MIDA’s benefits and incentives, they must have an ML or ICA10
2. Where to apply?
  - • MIDA e-Manufacturing Licence (e-ML)

Relevant Acts/Ordinances, Enactments and Regulations

Companies Act, 2016
Business Registration Act 1956
National Forestry Act 1984
National Forestry Act (Amended) 2022
Malaysian Timber Industry Board (Incorporation) Act 1973
Forest (Timber) Enactment 2015 (Sabah)
State Wood-Based Industries Enactment/ Wood-Based Industries Rules
Forest Enactment 1968 / Forest Rules (Sabah)
Forest Ordinance 2015/ Forest Rules (Sarawak)
Sarawak Timber Industry Development Corporation Ordinance, 1973
National Land Code (Revised 2020) (Act 828)
Land Ordinance Chapter 68 (Sabah)
Land Code Chapter 81 (1958 Edition) (Sarawak)
Local Government Act 1976
Local Government Ordinance 1961 (Sabah)
Local Authorities Ordinance 1996 (Sarawak)
Industrial Co-ordination Act 1975 (ICA)
Town and Country Planning Act 1976
Town and Country Planning Ordinance (Sabah Cap 141)
Street, Drainage and Building Act 1974
Buildings Ordinance, 1994 (Sarawak)
Fire Services Act 1988
Factories and Machinery Act 1967
Occupational Safety and Health Act 1994
Environmental Quality Act 1974
Immigration Act 1959/63
Labour Ordinance (Sabah Cap. 67)
Labour Ordinance Chapter 76 (1958 Ed.)
Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990
Emergency (Employees’ Minimum Standards of Housing, Accommodations and Amenities (Amendment) Ordinance 2021
Employees Provident Fund Act 1991
Employees’ Social Security Act 1969
Human Resources Development Berhad Act 2001
Sales Tax Act 2018
Service Tax Act 2018
Financial Procedure Act 1957
Road Transport Act 1987
Commercial Vehicles Licensing Board Act 1987

Background

Under Section 5A(1) of “The Sarawak Timber Industry Development Corporation Ordinance, 1973”, any person involved in the timber industry must register with STIDC and holds a valid certificate of Registration. The Registration Division functions are to register any person involved in the establishment, management or operation of any mills, manufacturing, sale, distribution or marketing of timber and timber products, update and keep registration records and monitor the development of timber industry.

Timber Specific Requirements

Import License

Import Permit

CITES Import Permit

Import License

• Sarawak Timber Industry Development Corporation (STIDC)
1. Requirements:
  - • Under Section 31 of the Act, the Government may prohibit the import of any goods from any specified country, territory or place outside Malaysia either absolutely or conditionally
  - • Importers can apply for import licenses from STIDC
  - • Import license is valid for 14 days
  - • General import procedure by RMCD
2. Documents required:
  - • Procedure for importation by STIDC
3. Where to apply?
  - • Application procedure can be accessed through STIDC

Import Permit

• Import Permit
1. Requirements:
  - • The import permit is to regulate the entry of plant and plant products to prevent the entry and spread of pests and diseases brought together with the imported material.
  - • Issues permit for the importation and exportation of live animal and animal product under the legislation of Malaysian Quarantine and Inspection Services Act 2011 (Act728) & Regulations.
2. Where to apply?
  Application can be made through dagang.net

CITES Import Permit

• CITES Import Permit
1. Requirements:
  - • For goods that are controlled under the International Trade in Endangered Species Act 2008, importers must apply for the CITES import permit.
  - • SFC is responsible for issuing the CITES Import Permit for Sarawak.
  - • When receiving the consignment of goods at the entry point, port or registered landing area, importers can apply for import license from the license issuing agencies.
  - • MAQIS will also carry out physical inspection and quarantine of the consignment to verify the import permit and the phytosanitary certificate from the exporting country.
  - • For approved consignment, importers must pay the service fee to obtain the property hammer mark and the Removal Pass before the consignment can be transported to the designated destination. Fee is not needed in Sarawak for imported timber / logs.
  - • Guideline for can be accessed through Department of Agriculture (DOA)
2. Documents required and where to apply:
  - • Application can be accessed through Sarawak Forestry Corporation

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
The Malaysian Quarantine and Inspection Services Act, 2011 [Act 728]
International Trade in Endangered Species Act 2008
Malaysian Timber Industry Board (Incorporation) Act 1973
Customs (Prohibition of Imports) Order 2023

Timber Specific Requirements

Export License / Permit

CITES Permit

Phytosanitary Certificate

Certificate of Origin

Export License / Permit

• Export License / Permit
1. Requirements:
  - • The Malaysian government may prohibit export of any goods to any country, territory or place outside Malaysia either absolutely or conditionally.
2. Guidelines and documents required:
  - • Information can be accessed through Sarawak Timber Industry Development Corporation (STIDC).
3. Where to apply:
  - • Registered with Dagangnet Technologies Sdn Bhd (http://www.dagangnet.com) as a user of ePermit System.

CITES Permit

• CITES Permit
1. Requirements:
  - • For goods that are controlled under the International Trade in Endangered Species Act 2008, exporters must apply for CITES Export and Re-Export Permit as stated under the Third Schedule of the Order.
2. Where to apply, guidelines and documents required:
  - • Sarawak Forestry Corporation (SFC)

Phytosanitary Certificate

• Phytosanitary Certificate
1. Requirements:
  - • A major requirement for timber and timber product export is PC.
  - • It is required when shipping regulated articles such as plants, plant products or other regulated articles to the importing country.
  - • This certificate aims to prevent the spread of plant pests and diseases through trade / movement of plants, plant products and regulated articles internationally.
  - • The Department of Agriculture Malaysia is responsible for issuing PC as per requirements of the Plant Quarantine Act 1976 and the Plant Quarantine Regulations 1981.
2. Where to apply, guidelines and documents required:
  - • Information can be accessed here.

Certificate of Origin

• Preferential Certificate of Origin
1. Requirements:
  - • The importing country might request for CO which certifies the origin of the goods.
  - • The Preferential Certificate of Origin (PCO) is a requirement under Free Trade Agreement (FTA) between Malaysia and signing countries.
  - • PCO is issued by the Ministry of International Trade and Industry (MITI), and it allows the importer to claim for preferential tariff rates based on Rules of Origin.
2. Guidelines and process flow to apply for PCO:
  - • MITI
3. Guidelines for ePCO:
  - • MITI
4. Where to apply:
  - • ePCO
Non-Preferential Certificate of Origin (NPCO)
1. Requirements:
  - • NPCO is required when importing country requests for it.
  - • It is issued by the Malaysian International Chamber of Commerce & Industry (MICCI), Federation of Malaysian Manufacturers (FMM), Sabah Timber Industries Association (STIA), and other chambers and associations authorized by MITI.
2. Guidelines and documents required:
  - • MICCI
  - • MITI

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
International Trade in Endangered Species Act 2008
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
Malaysian Quarantine and Inspection Services (Registration of Importers, Exporters and Agents) Regulations 2013
Free Trade Agreement (FTA) / Generalised System of Preferences (GSP)
Customs (Prohibition of Exports) Order 2017
Sabah Export Royalty on Round Log and Other Charges (Starting from 3 January 2022)

Peninsula
Sabah
Sarawak

Peninsula

Select

General Requirements

Therefore, users are advised to refer to the type of business entity based on the guideline as follows:

• Starting a Sole Proprietorship / Partnership
• Starting a Company
• Starting a Limited Liability Partnership (LLP)

Timber Specific Requirements

Those who wish to conduct business in the timber industry are required to register with the below to obtain licenses and permits.

Malaysian Timber Industry Board (MTIB)

• Registration Guidelines

General Requirements

License

Land

Factory and Machinery

Worker

Tax

License

• Local Authorities
1. Requirements:
  Having a valid business license is essential for starting a business in Malaysia. Applications for a business / trading license shall be submitted to local councils where the physical premises / factory is located.
2. Documents required:
  The requirements for the license might vary according to each local council (PBT). In general, PBTs require the following documents to be submitted:
  - • Business registration (SSM)
  - • The business location plan
  - • Agreement letter or permission of the building owner (if not owner)
  - • Floor plan of the premises
  - • Certificate of fitness to occupy (CF)
  - • Land grant or official search certificate
3. Where to apply?
  Nearby local authorities

• Ministry of Finance (MOF) License
1. Requirements:
  MOF License Treasury Registration is a prerequisite for companies to participate in government and semi-government procurement tenders and contracts. This license is required of suppliers who wish to supply furniture products to the government.
2. Documents required:
  - • Ensure the company is incorporated as Sdn. Bhd.
  - • Latest 3 months bank statements
  - • Latest 3 months KWSP statements
  - • Company profile stating the details of all directors & shareholders
  - • One set of certified true copy (CTC) form 49, 24, 44 / Section 14, M&A if available and Section 17
  - • One copy of certified true copy (CTC) for Board Resolution to open bank account
  - • Field code for the businesses
  - • A copy of identification for all directors
  - • Relevant academic certificates for directors, if any
  - • Commissioner for Oaths / Attestation on all relevant academic certificates
  - • S&P for office or Tenancy Agreement for office
3. Where to apply?
  Visit the MOF License Registration website: ePerolehan website and submit the required documents for your application

• Manufacturing License (ML) by Malaysian Investment Development Authority (MIDA)
1. Where to apply?
  - • Manufacturing firms with shareholders funds of RM2.5 million and above or employing 75 or more full-time employees:
    Need to apply for a manufacturing license (ML) from the Ministry of International Trade and Industry (MITI). Applications shall be submitted to the Malaysian Investment Development Authority (MIDA), an agency of MITI

1. - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    May apply for an exemption by submitting the ICA10 Form to MIDA. For firms that want to enjoy MIDA’s benefits and incentives, they must have an ML or ICA10.

Land

• Local Authorities
1. Requirements:
  No person shall erect any building without the prior written permission of the local council under Section 70(1) of the Street, Drainage and Building Act 1974. A Principal Submitting Person (PSP) is responsible to get the building plan approved. After construction is completed and essential services provided for, the Certificate of Completion and Compliance (CCC) is issued stating that the building is safe for occupation.
2. Where to apply?
  One stop centre (OSC) 3.0 Plus

Factory and Machinery

• Department of Occupational Safety and Health (DOSH)
1. Requirements:
  - • DOSH is responsible for regulating and enforcing various occupational safety and health rules to ensure that the safety, health, and welfare of the people at work are protected from occupational hazards.
  - • Certifications are required for steam boilers, unfired pressure vessels, hoisting machinery, sand blasting, personal protective equipment, lifts, escalators, dumbwaiters, boiler and pressure vessels and pipelines as well as general machinery.
2. Documents required:
  - • Design drawings
  - • A catalogue of machines
  - • Process flow charts
  - • Safe operating procedures
  - • Data sheets
  - • Certificate of fitness or any certification applicable to the respective machinery
3. Where to apply?
  - • Factory that operates machinery must submit an application and relevant documents for “Permission to Install Machinery” to the nearest DOSH office.
  - • Businesses must submit new applications along with new factory layout every time a new machine is to be installed.

• Department of Environment (DoE)
1. Requirements:
  - • To prevent, eliminate, control pollution and improve the environment.
2. Requirement:
  - • “Competent person” / “certified environmental professional” who has been certified by the Director General of the DOE as stated under Section 49a of the Environmental Quality (Amendment) Act 2012.
  - • This officer is responsible to supervise the operation of a pollution control system or the management of scheduled wastes.
• BOMBA
1. Requirements:
  - • Such premises must have a fire certificate issued by the Malaysian Fire and Rescue Department as required in the Fire Services (Fire Certificate) Regulations 2001 of the Fire Services Act 1988.
  - • New premises must apply for a fire certificate upon obtaining a Certificate of Fitness (CF) or Temporary Certificate of Fitness (TCF) or CCC.
2. Documents required:
  - • Form I
  - • Copy of CCC
  - • Copy of building plan (which has been approved by BOMBA during CCC production)
  - • Copy of sales and purchase agreement
  - • Copy of land title
  - • Copy of assessment
  - • Copy of business license
3. Where to apply?
  Can be made at the BOMBA headquarters or certain BOMBA station based on the location of the building.

Worker

• Ministry of Human Resource (MOHR), Immigration Department of Malaysia
1. 1. General Requirement:
    - • Work in permitted sectors namely Manufacturing, Construction, Agriculture, Plantation and Services;
    - • Applications for foreign workers by employers / companies are subject to quota approval from the One Stop Approval Center (OSC), Ministry of Home Affairs;
    - • Be not less than 18 years old and not more than 45 years old at the time of application;
    - • Certified to pass the Immigration Security Clearance (ISC) certification performed in the source country.
    - • Certified healthy by a health screening center in the source country;
    - • Prospective employees are not included in the list of foreign individuals barred from entering in accordance with Section 8 (3) of the Immigration Act 1959/1963; and
    - • Foreign workers must be recruited from an authorized source country.
  2. Procedure:
    Procedure of application is available here
• Department of Labour of Peninsular Malaysia
• Local Authorities
• Department of Immigration
• Malaysian Investment Development Authority (MIDA)
• KWSP / EPF
• SOCSO
• HRD Corporation
• Minimum Standard for Workers Accommodation
The Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 was enforced to prescribe the minimum standards of housing for estate workers and their families.

Tax

• Royal Malaysian Customs Department (RMCD)
1. Requirements:
  - • Taxable goods manufacturers are required / liable to be registered when sales value of taxable goods has exceeded RM500,000 for 12 months period.
  - • Manufacturers who carry out sub-contract work on taxable goods where the VALUE of work performed exceeds RM500,000 for 12 months period.
  - • Further information is available here
2. Application Procedure:
  Application procedure is available here

Timber Specific Requirements

License

Transportation

Factory / Sawmill License

Manufacturing License

License

- • State Forestry Department
  1. Requirements:
    - • All wood processing mills must be licensed by the State Forestry Department (Section 3 of the Wood-Based Industries Enactments) through Wood-Based Industries (State Legislatures Competency) Act 1984.
    - • This license allows business to site, build, erect, establish, operate and/or maintain the following wood-based industry.
  2. Documents required:
    - • Jadual Pertama form: four copies for the new application
    - • Four layout plans: site mill location, site mill building, design mill building and plants layout
    - • Copy of letter from related agencies
  3. Where to apply?
    - • Manual application to District Forestry Office
    - • The license application is subjected to applicable fees; depending on the type of industry and machines used. Different states impose different fee rates
    - • License to operate wood-based industry will be produced within a period of one month from the complete date of the factory constructed when meets all the conditions approval.

Transportation

• Removal Pass (RP)
1. Requirements:
  - • RP will be issued on site by Balai Pemeriksaan Hutan (BPH) officer for each conveyance load once the timber royalties and fees have been paid.
  - • RP carries a record of the type / species, volume of produce, and the royalty and forest development cess payable
2. Where to apply?
  - • RP is issued by the State Forestry Department upon inspection and payment of royalty
• Land Public Transport Agency (APAD), Road Transport Department (JPJ), PUSPAKOM
1. Requirements:
  - • All vehicles and drivers must comply with the requirements of the Road Transport Act 1987 and Commercial Vehicles Licensing Board Act 1987
2. Documents required to comply:
  - • Vehicle license
  - • Driver license
  - • Vehicle inspection
  - • Vehicle specification guidelines

Factory / Sawmill License

• Factory / Sawmill License
1. Requirements:
  - • All wood processing mills must be licensed by the State Forestry Department (Section 3 of the Wood-Based Industries Enactments) through Wood-Based Industries (State Legislatures Competency) Act 1984.
  - • This license allows business to site, build, erect, establish, operate and/or maintain the following wood-based industry.
  - • The license application is subjected to applicable fees; depending on the type of industry and machines used. Different states impose different fee rates.
2. Documents required:
  - • Application form
  - • Supporting documents
3. Where to apply?
  - • District Forestry Office

Manufacturing License

• Malaysian Investment Development Authority (MIDA)
1. Requirements:
  - • Manufacturing firms with shareholders’ funds of RM2.5 million and above or employing 75 or more full-time employees:
    - • Need to apply for a manufacturing license (ML) from the Ministry of International Trade and Industry (MITI). Applications shall be submitted to MIDA, an agency of MITI
  - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    - • May apply for an exemption by submitting the ICA10 Form to MIDA
  - • For firms that want to enjoy MIDA’s benefits and incentives, they must have an ML or ICA10
2. Where to apply?
  - • MIDA e-Manufacturing Licence (e-ML)

Relevant Acts/Ordinances, Enactments and Regulations

Companies Act, 2016
Business Registration Act 1956
National Forestry Act 1984
National Forestry Act (Amended) 2022
Malaysian Timber Industry Board (Incorporation) Act 1973
Forest (Timber) Enactment 2015 (Sabah)
State Wood-Based Industries Enactment/ Wood-Based Industries Rules
Forest Enactment 1968 / Forest Rules (Sabah)
Forest Ordinance 2015/ Forest Rules (Sarawak)
Sarawak Timber Industry Development Corporation Ordinance, 1973
National Land Code (Revised 2020) (Act 828)
Land Ordinance Chapter 68 (Sabah)
Land Code Chapter 81 (1958 Edition) (Sarawak)
Local Government Act 1976
Local Government Ordinance 1961 (Sabah)
Local Authorities Ordinance 1996 (Sarawak)
Industrial Co-ordination Act 1975 (ICA)
Town and Country Planning Act 1976
Town and Country Planning Ordinance (Sabah Cap 141)
Street, Drainage and Building Act 1974
Buildings Ordinance, 1994 (Sarawak)
Fire Services Act 1988
Factories and Machinery Act 1967
Occupational Safety and Health Act 1994
Environmental Quality Act 1974
Immigration Act 1959/63
Labour Ordinance (Sabah Cap. 67)
Labour Ordinance Chapter 76 (1958 Ed.)
Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990
Emergency (Employees’ Minimum Standards of Housing, Accommodations and Amenities (Amendment) Ordinance 2021
Employees Provident Fund Act 1991
Employees’ Social Security Act 1969
Human Resources Development Berhad Act 2001
Sales Tax Act 2018
Service Tax Act 2018
Financial Procedure Act 1957
Road Transport Act 1987
Commercial Vehicles Licensing Board Act 1987

Background

• Imports into Malaysia is governed by the Royal Malaysian Customs Department (RMCD) which has the power to implement policies and regulations on imports.
• The Malaysian Timber Industry Board (MTIB) is delegated by the RMCD to issue import licenses for timber and timber products for Peninsular Malaysia and Labuan.
• Additional import permits are also required from the Malaysian Quarantine and Inspection Services (MAQIS) Department for Peninsular Malaysia and Wilayah Persekutuan Labuan, Department of Agriculture Sabah and Department of Agriculture Sarawak.
• For goods that are controlled under the International Trade in Endangered Species Act 2008, importers must apply for the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Import Permit.

Timber Specific Requirements

Import License

Import Permit

CITES Import Permit

Import License

• Malaysian Timber Industry Board (MTIB)
1. Requirements:
  - • Under Section 31 of the Act, the Government may prohibit the import of any goods from any specified country, territory or place outside Malaysia either absolutely or conditionally
  - • MTIB is delegated by the RMCD to issue import licenses for timber and timber products.
  - • Import license is valid for 14 days
  - • General import procedure by RMCD
2. Where to apply and documents required:
  - • Information can be accessed through MTIB

Import Permit

• Import Permit
1. Requirements:
  - • The import permit is to regulate the entry of plant and plant products to prevent the entry and spread of pests and diseases brought together with the imported material.
  - • Issues permit for the importation and exportation of live animal and animal product under the legislation of Malaysian Quarantine and Inspection Services Act 2011 (Act728) & Regulations.
  - • The Customs (Prohibition of Imports) Order 2023 was enforced on 15 April 2023 with the amendment on manner of import for the issuance of import permit into Peninsular Malaysia and Labuan from MTIB to MAQIS for poles and piles of Bakau (Rhizophora spp.) as described under item 39 for columns (2) and (3) in Part 1 of the Third Schedule. Any importation approval issued by MTIB before the enforcement of the Customs (Prohibition of Imports) Order 2023 has been nullified.
2. Documents required:
  - • Application will be verified by MAQIS
3. Where to apply?
  - • Application can be made through dagang.net

CITES Import Permit

• CITES Import Permit
1. Requirements:
  - • For goods that are controlled under the International Trade in Endangered Species Act 2008, importers must apply for the CITES import permit.
  - • MTIB is responsible for issuing the CITES Import Permit for Peninsula Malaysia.
  - • When receiving the consignment of goods at the entry point, port or registered landing area, importers can apply for import license from the license issuing agencies.
  - • MAQIS will also carry out physical inspection and quarantine of the consignment to verify the import permit and the phytosanitary certificate from the exporting country.
  - • For approved consignment, importers must pay the service fee to obtain the property hammer mark and the Removal Pass before the consignment can be transported to the designated destination. Fee is not needed in Sarawak for imported timber / logs.
2. Documents required and where to apply:
  - • Application will be accessed through MTIB

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
The Malaysian Quarantine and Inspection Services Act, 2011 [Act 728]
International Trade in Endangered Species Act 2008
Malaysian Timber Industry Board (Incorporation) Act 1973
Customs (Prohibition of Imports) Order 2023

Timber Specific Requirements

Export License / Permit

CITES Permit

Phytosanitary Certificate

Certificate of Origin

Export License / Permit

• Export License / Permit
1. Requirements:
  - • The Malaysian government may prohibit export of any goods to any country, territory or place outside Malaysia either absolutely or conditionally.
2. Guidelines and documents required:
  - • Information can be accessed through MTIB.
3. Where to apply:
  - • Application can be accessed through MTIB Core System.

CITES Permit

• CITES Permit
1. Requirements:
  - • For goods that are controlled under the International Trade in Endangered Species Act 2008, exporters must apply for CITES Export and Re-Export Permit as stated under the Third Schedule of the Order.
2. Where to apply, guidelines and documents required:
  - • Information can be accessed through MTIB.

Phytosanitary Certificate

• Phytosanitary Certificate
1. Requirements:
  - • A major requirement for timber and timber product export is PC.
  - • It is required when shipping regulated articles such as plants, plant products or other regulated articles to the importing country.
  - • This certificate aims to prevent the spread of plant pests and diseases through trade / movement of plants, plant products and regulated articles internationally.
  - • The Department of Agriculture Malaysia is responsible for issuing PC as per requirements of the Plant Quarantine Act 1976 and the Plant Quarantine Regulations 1981.
2. Where to apply, guidelines and documents required:
  - • Information can be accessed here.

Certificate of Origin

• Preferential Certificate of Origin
1. Requirements:
  - • The importing country might request for CO which certifies the origin of the goods.
  - • The Preferential Certificate of Origin (PCO) is a requirement under Free Trade Agreement (FTA) between Malaysia and signing countries.
  - • PCO is issued by the Ministry of International Trade and Industry (MITI), and it allows the importer to claim for preferential tariff rates based on Rules of Origin.
2. Guidelines and process flow to apply for PCO:
  - • MITI
3. Guidelines for ePCO:
  - • MITI
4. Where to apply:
  - • ePCO
• Non-Preferential Certificate of Origin (NPCO)
1. Requirements:
  - • NPCO is required when importing country requests for it.
  - • It is issued by the Malaysian International Chamber of Commerce & Industry (MICCI), Federation of Malaysian Manufacturers (FMM), Sabah Timber Industries Association (STIA), and other chambers and associations authorized by MITI.
2. Guidelines and documents required:
  - • MICCI
  - • MITI

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
International Trade in Endangered Species Act 2008
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
Malaysian Quarantine and Inspection Services (Registration of Importers, Exporters and Agents) Regulations 2013
Free Trade Agreement (FTA) / Generalised System of Preferences (GSP)
Customs (Prohibition of Exports) Order 2017
Sabah Export Royalty on Round Log and Other Charges (Starting from 3 January 2022)

Sabah

Select

General Requirements

Therefore, users are advised to refer to the type of business entity based on the guideline as follows:

• Starting a Sole Proprietorship / Partnership
• Starting a Company
• Starting a Limited Liability Partnership (LLP)

Timber Specific Requirements

Those who wish to conduct business in the timber industry are required to register with the below to obtain licenses and permits.

Sabah Forestry Department (SFD)

• Registration Guidelines

General Requirements

License

Land

Factory and Machinery

Worker

Tax

License

• Local Authorities
1. Requirements:
  Having a valid business license is essential for starting a business in Malaysia. Applications for a business / trading license shall be submitted to local councils where the physical premises / factory is located.
2. Documents required:
  The requirements for the license might vary according to each local council (PBT). In general, PBTs require the following documents to be submitted:
  - • Business registration (SSM)
  - • The business location plan
  - • Agreement letter or permission of the building owner (if not owner)
  - • Floor plan of the premises
  - • Certificate of fitness to occupy (CF)
  - • Land grant or official search certificate
3. Where to apply?
  Nearby local authorities
• Ministry of Finance (MOF) License
1. Requirements:
  MOF License Treasury Registration is a prerequisite for companies to participate in government and semi-government procurement tenders and contracts. This license is required of suppliers who wish to supply furniture products to the government.
2. Documents required:
  - • Ensure the company is incorporated as Sdn. Bhd.
  - • Latest 3 months bank statements
  - • Latest 3 months KWSP statements
  - • Company profile stating the details of all directors & shareholders
  - • One set of certified true copy (CTC) form 49, 24, 44 / Section 14, M&A if available and Section 17
  - • One copy of certified true copy (CTC) for Board Resolution to open bank account
  - • Field code for the businesses
  - • A copy of identification for all directors
  - • Relevant academic certificates for directors, if any
  - • Commissioner for Oaths / Attestation on all relevant academic certificates
  - • S&P for office or Tenancy Agreement for office
3. Where to apply?
  Visit the MOF License Registration website: ePerolehan website and submit the required documents for your application
• Manufacturing License (ML) by Malaysian Investment Development Authority (MIDA)
1. Where to apply?
  - • Manufacturing firms with shareholders funds of RM2.5 million and above or employing 75 or more full-time employees:
    - • With IBK license alone is sufficient for timber industry hence manufacturers do not need to apply for “State Government Approval” (SGA) from the Department of Industrial Development & Research (DIDR) Sabah.
    - • For firms that need an ML or ICA10 (e.g., in order to enjoy MIDA’s benefits and incentives), they will need to obtain letter of approval from DIDR as a pre-condition to apply for ML or ICA10.
  - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    May apply for an exemption by submitting the ICA10 Form to MIDA. For firms that want to enjoy MIDA’s benefits and incentives, they must have an ML or ICA10.

Land

- • Local Authorities
  1. 1. Requirements:
      No person shall erect any building without the prior written permission of the local council under Section 70(1) of the Street, Drainage and Building Act 1974. A Principal Submitting Person (PSP) is responsible to get the building plan approved. After construction is completed and essential services provided for, the Certificate of Completion and Compliance (CCC) is issued stating that the building is safe for occupation.
    2. Where to apply?
      Electronic Planning Permission (ePP) System

• Sabah Lands and Surveys Department

Factory and Machinery

• Department of Occupational Safety and Health (DOSH)
1. Requirements:
  - • DOSH is responsible for regulating and enforcing various occupational safety and health rules to ensure that the safety, health, and welfare of the people at work are protected from occupational hazards.
  - • Certifications are required for steam boilers, unfired pressure vessels, hoisting machinery, sand blasting, personal protective equipment, lifts, escalators, dumbwaiters, boiler and pressure vessels and pipelines as well as general machinery.
2. Documents required:
  - • Design drawings
  - • A catalogue of machines
  - • Process flow charts
  - • Safe operating procedures
  - • Data sheets
  - • Certificate of fitness or any certification applicable to the respective machinery
3. Where to apply?
  - • Factory that operates machinery must submit an application and relevant documents for “Permission to Install Machinery” to the nearest DOSH office.
  - • Businesses must submit new applications along with new factory layout every time a new machine is to be installed.
• Department of Environment (DoE)
1. Requirements:
  - • To prevent, eliminate, control pollution and improve the environment.
2. Requirement:
  - • “Competent person” / “certified environmental professional” who has been certified by the Director General of the DOE as stated under Section 49a of the Environmental Quality (Amendment) Act 2012.
  - • This officer is responsible to supervise the operation of a pollution control system or the management of scheduled wastes.
• BOMBA
1. Requirements:
  - • Such premises must have a fire certificate issued by the Malaysian Fire and Rescue Department as required in the Fire Services (Fire Certificate) Regulations 2001 of the Fire Services Act 1988.
  - • New premises must apply for a fire certificate upon obtaining a Certificate of Fitness (CF) or Temporary Certificate of Fitness (TCF) or CCC.
2. Documents required:
  - • Form I
  - • Copy of CCC
  - • Copy of building plan (which has been approved by BOMBA during CCC production)
  - • Copy of sales and purchase agreement
  - • Copy of land title
  - • Copy of assessment
  - • Copy of business license
3. Where to apply?
  Can be made at the BOMBA headquarters or certain BOMBA station based on the location of the building.

Worker

• Ministry of Human Resource (MOHR), Immigration Department of Malaysia
1. General Requirement:
  - • Work in permitted sectors namely Manufacturing, Construction, Agriculture, Plantation and Services;
  - • Applications for foreign workers by employers / companies are subject to quota approval from the One Stop Approval Center (OSC), Ministry of Home Affairs;
  - • Be not less than 18 years old and not more than 45 years old at the time of application;
  - • Certified to pass the Immigration Security Clearance (ISC) certification performed in the source country.
  - • Certified healthy by a health screening center in the source country;
  - • Prospective employees are not included in the list of foreign individuals barred from entering in accordance with Section 8 (3) of the Immigration Act 1959/1963; and
  - • Foreign workers must be recruited from an authorized source country.
2. Procedure:
  Procedure of application is available here
• Department of Labour of Peninsular Malaysia
• Local Authorities
• Department of Immigration
• Malaysian Investment Development Authority (MIDA)
• KWSP / EPF
• SOCSO
• HRD Corporation
• Minimum Standard for Workers Accommodation
The Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 was enforced to prescribe the minimum standards of housing for estate workers and their families.

Tax

• Royal Malaysian Customs Department (RMCD)
1. Requirements:
  - • Taxable goods manufacturers are required / liable to be registered when sales value of taxable goods has exceeded RM500,000 for 12 months period.
  - • Manufacturers who carry out sub-contract work on taxable goods where the VALUE of work performed exceeds RM500,000 for 12 months period.
  - • Further information is available here
2. Application Procedure:
  Application procedure is available here

Timber Specific Requirements

License

Transportation

Factory / Sawmill License

Manufacturing License

License

- • State Forestry Department
  1. Requirements:
    - • The license application is submitted through the District Forestry Officer together with the application form and other supporting documents. This regulated by Sabah Forest Enactment 1968 and the Forest Rules 1969.
    - • This license allows business to site, build, erect, establish, operate and/or maintain the following wood-based industry.
  2. Documents required:
    - • Jadual Pertama form: four copies for the new application
    - • Four layout plans: site mill location, site mill building, design mill building and plants layout
    - • Copy of letter from related agencies
  3. Where to apply?
    - • Manual application to District Forestry Office
    - • The license application is subjected to applicable fees; depending on the type of industry and machines used. Different states impose different fee rates
    - • License to operate wood-based industry will be produced within a period of one month from the complete date of the factory constructed when meets all the conditions approval.

Transportation

• Removal Pass (RP)
1. Requirements:
  - • RP will be issued on site by Balai Pemeriksaan Hutan (BPH) officer for each conveyance load once the timber royalties and fees have been paid.
  - • RP carries a record of the type / species, volume of produce, and the royalty and forest development cess payable
2. Where to apply?
  - • RP is issued by the State Forestry Department upon inspection and payment of royalty
• Land Public Transport Agency (APAD), Road Transport Department (JPJ), PUSPAKOM
1. Requirements:
  - • All vehicles and drivers must comply with the requirements of the Road Transport Act 1987 and Commercial Vehicles Licensing Board Act 1987
2. Documents required to comply:
  - • Vehicle license
  - • Driver license
  - • Vehicle inspection
  - • Vehicle specification guidelines

Factory / Sawmill License

• Factory / Sawmill License
1. Requirements:
  - • This license allows business to site, build, erect, establish, operate and/or maintain the following wood-based industry.
  - • The license application is subjected to applicable fees; depending on the type of industry and machines used. Different states impose different fee rates.
2. Documents required:
  - • Application form
  - • Supporting documents
3. Where to apply?
  - • District Forestry Office

Manufacturing License

• Malaysian Investment Development Authority (MIDA)
1. Requirements:
  - • Manufacturing firms with shareholders’ funds of RM2.5 million and above or employing 75 or more full-time employees:
    - • Need to apply for a manufacturing license (ML) from the Ministry of International Trade and Industry (MITI). Applications shall be submitted to MIDA, an agency of MITI
  - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    - • May apply for an exemption by submitting the ICA10 Form to MIDA
  - • For firms that want to enjoy MIDA’s benefits and incentives, they must have an ML or ICA10
2. Where to apply?
  - • MIDA e-Manufacturing Licence (e-ML)

Relevant Acts/Ordinances, Enactments and Regulations

Companies Act, 2016
Business Registration Act 1956
National Forestry Act 1984
National Forestry Act (Amended) 2022
Malaysian Timber Industry Board (Incorporation) Act 1973
Forest (Timber) Enactment 2015 (Sabah)
State Wood-Based Industries Enactment/ Wood-Based Industries Rules
Forest Enactment 1968 / Forest Rules (Sabah)
Forest Ordinance 2015/ Forest Rules (Sarawak)
Sarawak Timber Industry Development Corporation Ordinance, 1973
National Land Code (Revised 2020) (Act 828)
Land Ordinance Chapter 68 (Sabah)
Land Code Chapter 81 (1958 Edition) (Sarawak)
Local Government Act 1976
Local Government Ordinance 1961 (Sabah)
Local Authorities Ordinance 1996 (Sarawak)
Industrial Co-ordination Act 1975 (ICA)
Town and Country Planning Act 1976
Town and Country Planning Ordinance (Sabah Cap 141)
Street, Drainage and Building Act 1974
Buildings Ordinance, 1994 (Sarawak)
Fire Services Act 1988
Factories and Machinery Act 1967
Occupational Safety and Health Act 1994
Environmental Quality Act 1974
Immigration Act 1959/63
Labour Ordinance (Sabah Cap. 67)
Labour Ordinance Chapter 76 (1958 Ed.)
Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990
Emergency (Employees’ Minimum Standards of Housing, Accommodations and Amenities (Amendment) Ordinance 2021
Employees Provident Fund Act 1991
Employees’ Social Security Act 1969
Human Resources Development Berhad Act 2001
Sales Tax Act 2018
Service Tax Act 2018
Financial Procedure Act 1957
Road Transport Act 1987
Commercial Vehicles Licensing Board Act 1987

Background

Timber Specific Requirements

Import License

Import Permit

CITES Import Permit

Import License

- • Sabah Forestry Department (SFD)
  1. Requirements:
    - • Under Section 31 of the Act, the Government may prohibit the import of any goods from any specified country, territory or place outside Malaysia either absolutely or conditionally
    - • Importers can apply for import licenses from SFD
    - • Import license is valid for 14 days
    - • General import procedure by RMCD
  2. Documents required:
    - • Procedure for importation by SFD
  3. Where to apply?
    - • Application procedure can be accessed through SFD

Import Permit

• Import Permit
1. Requirements:
  - • The import permit is to regulate the entry of plant and plant products to prevent the entry and spread of pests and diseases brought together with the imported material.
  - • Issues permit for the importation and exportation of live animal and animal product under the legislation of Malaysian Quarantine and Inspection Services Act 2011 (Act728) & Regulations.
  - • The Customs (Prohibition of Imports) Order 2023 was enforced on 15 April 2023 with the amendment on manner of import for the issuance of import permit into Peninsular Malaysia and Labuan from MTIB to MAQIS for poles and piles of Bakau (Rhizophora spp.) as described under item 39 for columns (2) and (3) in Part 1 of the Third Schedule. Any importation approval issued by MTIB before the enforcement of the Customs (Prohibition of Imports) Order 2023 has been nullified.
2. Documents required:
  - • Application will be verified by MAQIS
3. Where to apply?
  - • Application can be made through dagang.net

CITES Import Permit

• CITES Import Permit
1. Requirements:
  - • For goods that are controlled under the International Trade in Endangered Species Act 2008, importers must apply for the CITES import permit.
  - • SFD is responsible for issuing the CITES Import Permit for Sabah.
  - • When receiving the consignment of goods at the entry point, port or registered landing area, importers can apply for import license from the license issuing agencies.
  - • MAQIS will also carry out physical inspection and quarantine of the consignment to verify the import permit and the phytosanitary certificate from the exporting country.
  - • For approved consignment, importers must pay the service fee to obtain the property hammer mark and the Removal Pass before the consignment can be transported to the designated destination. Fee is not needed in Sarawak for imported timber / logs.
  - • Guideline for can be accessed through Department of Agriculture (DOA)
2. Documents required and where to apply:
  - • Application can be accessed through Department of Agriculture

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
The Malaysian Quarantine and Inspection Services Act, 2011 [Act 728]
International Trade in Endangered Species Act 2008
Malaysian Timber Industry Board (Incorporation) Act 1973
Customs (Prohibition of Imports) Order 2023

Timber Specific Requirements

Export License / Permit

CITES Permit

Phytosanitary Certificate

Certificate of Origin

Export License / Permit

• Export License / Permit
1. Requirements:
  - • The Malaysian government may prohibit export of any goods to any country, territory or place outside Malaysia either absolutely or conditionally.
2. Guidelines and documents required:
  - • Information can be accessed through Sabah Forestry Department (SFD).
3. Where to apply:
  - • License application is required manually to the District Forestry Officer.

CITES Permit

- • CITES Permit
  1. Requirements:
    - • For goods that are controlled under the International Trade in Endangered Species Act 2008, exporters must apply for CITES Export and Re-Export Permit as stated under the Third Schedule of the Order.
  2. Where to apply, guidelines and documents required:
    - • Sabah Forestry Department (SFD)

Phytosanitary Certificate

• Phytosanitary Certificate
1. Requirements:
  - • A major requirement for timber and timber product export is PC.
  - • It is required when shipping regulated articles such as plants, plant products or other regulated articles to the importing country.
  - • This certificate aims to prevent the spread of plant pests and diseases through trade / movement of plants, plant products and regulated articles internationally.
  - • The Department of Agriculture Malaysia is responsible for issuing PC as per requirements of the Plant Quarantine Act 1976 and the Plant Quarantine Regulations 1981.
2. Where to apply, guidelines and documents required:
  - • Information can be accessed here.

Certificate of Origin

• Preferential Certificate of Origin
1. Requirements:
  - • The importing country might request for CO which certifies the origin of the goods.
  - • The Preferential Certificate of Origin (PCO) is a requirement under Free Trade Agreement (FTA) between Malaysia and signing countries.
  - • PCO is issued by the Ministry of International Trade and Industry (MITI), and it allows the importer to claim for preferential tariff rates based on Rules of Origin.
2. Guidelines and process flow to apply for PCO:
  - • MITI
3. Guidelines for ePCO:
  - • MITI
4. Where to apply:
  - • ePCO
• Non-Preferential Certificate of Origin (NPCO)
1. Requirements:
  - • NPCO is required when importing country requests for it.
  - • It is issued by the Malaysian International Chamber of Commerce & Industry (MICCI), Federation of Malaysian Manufacturers (FMM), Sabah Timber Industries Association (STIA), and other chambers and associations authorized by MITI.
2. Guidelines and documents required:
  - • MICCI
  - • MITI

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
International Trade in Endangered Species Act 2008
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
Malaysian Quarantine and Inspection Services (Registration of Importers, Exporters and Agents) Regulations 2013
Free Trade Agreement (FTA) / Generalised System of Preferences (GSP)
Customs (Prohibition of Exports) Order 2017
Sabah Export Royalty on Round Log and Other Charges (Starting from 3 January 2022)

Sarawak

Select

General Requirements

Therefore, users are advised to refer to the type of business entity based on the guideline as follows:

• Starting a Sole Proprietorship / Partnership
• Starting a Company
• Starting a Limited Liability Partnership (LLP)

Timber Specific Requirements

Those who wish to conduct business in the timber industry are required to register with the below to obtain licenses and permits.

Sarawak Timber Industry Development Corporation (STIDC)

- • Registration Guidelines

General Requirements

License

Land

Factory and Machinery

Worker

Tax

License

• Local Authorities
1. Requirements:
  Having a valid business license is essential for starting a business in Malaysia. Applications for a business / trading license shall be submitted to local councils where the physical premises / factory is located.
2. Documents required:
  The requirements for the license might vary according to each local council (PBT). In general, PBTs require the following documents to be submitted:
  - • Business registration (SSM)
  - • The business location plan
  - • Agreement letter or permission of the building owner (if not owner)
  - • Floor plan of the premises
  - • Certificate of fitness to occupy (CF)
  - • Land grant or official search certificate
3. Where to apply?
  Nearby local authorities

• Ministry of Finance (MOF) License
1. Requirements:
  MOF License Treasury Registration is a prerequisite for companies to participate in government and semi-government procurement tenders and contracts. This license is required of suppliers who wish to supply furniture products to the government.
2. Documents required:
  - • Ensure the company is incorporated as Sdn. Bhd.
  - • Latest 3 months bank statements
  - • Latest 3 months KWSP statements
  - • Company profile stating the details of all directors & shareholders
  - • One set of certified true copy (CTC) form 49, 24, 44 / Section 14, M&A if available and Section 17
  - • One copy of certified true copy (CTC) for Board Resolution to open bank account
  - • Field code for the businesses
  - • A copy of identification for all directors
  - • Relevant academic certificates for directors, if any
  - • Commissioner for Oaths / Attestation on all relevant academic certificates
  - • S&P for office or Tenancy Agreement for office
3. Where to apply?
  Visit the MOF License Registration website: ePerolehan website and submit the required documents for your application

• Manufacturing License (ML) by Malaysian Investment Development Authority (MIDA)
1. Where to apply?
  - - • Manufacturing firms with shareholders funds of RM2.5 million and above or employing 75 or more full-time employees:
      To get the ML, a supporting letter from the Industrial Coordination Committee (ICC) under the Ministry of International Trade, Industry and Investment (MINTRED) Sarawak is required.
  - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    They need to get the ICC’s manufacturing approval. Application for ICA10 requires the manufacturing approval as supporting document.

Land

• Local Authorities
1. Requirements:
  No person shall erect any building without the prior written permission of the local council under Section 70(1) of the Street, Drainage and Building Act 1974. A Principal Submitting Person (PSP) is responsible to get the building plan approved. After construction is completed and essential services provided for, the Certificate of Completion and Compliance (CCC) is issued stating that the building is safe for occupation.
2. Where to apply?
  Applicants must send their application to the Land and Survey Department for consideration and approval of State Planning Authority (SPA)
• Sarawak Lands and Surveys Department

Factory and Machinery

• Department of Occupational Safety and Health (DOSH)
- 1. Requirements:
    - • DOSH is responsible for regulating and enforcing various occupational safety and health rules to ensure that the safety, health, and welfare of the people at work are protected from occupational hazards.
    - • Certifications are required for steam boilers, unfired pressure vessels, hoisting machinery, sand blasting, personal protective equipment, lifts, escalators, dumbwaiters, boiler and pressure vessels and pipelines as well as general machinery.
  2. Documents required:
    - • Design drawings
    - • A catalogue of machines
    - • Process flow charts
    - • Safe operating procedures
    - • Data sheets
    - • Certificate of fitness or any certification applicable to the respective machinery
  3. Where to apply?
    - • Factory that operates machinery must submit an application and relevant documents for “Permission to Install Machinery” to the nearest DOSH office.
    - • Businesses must submit new applications along with new factory layout every time a new machine is to be installed.

• Department of Environment (DoE)

- 1. Requirements:
    - • To prevent, eliminate, control pollution and improve the environment.
  2. Requirement:
    - • “Competent person” / “certified environmental professional” who has been certified by the Director General of the DOE as stated under Section 49a of the Environmental Quality (Amendment) Act 2012.
    - • This officer is responsible to supervise the operation of a pollution control system or the management of scheduled wastes.

BOMBA

1. Requirements:
  - • Such premises must have a fire certificate issued by the Malaysian Fire and Rescue Department as required in the Fire Services (Fire Certificate) Regulations 2001 of the Fire Services Act 1988.
  - • New premises must apply for a fire certificate upon obtaining a Certificate of Fitness (CF) or Temporary Certificate of Fitness (TCF) or CCC.
2. Documents required:
  - • Form I
  - • Copy of CCC
  - • Copy of building plan (which has been approved by BOMBA during CCC production)
  - • Copy of sales and purchase agreement
  - • Copy of land title
  - • Copy of assessment
  - • Copy of business license
3. Where to apply?
  Can be made at the BOMBA headquarters or certain BOMBA station based on the location of the building.

Worker

• Ministry of Human Resource (MOHR), Immigration Department of Malaysia
1. General Requirement:
  - • Work in permitted sectors namely Manufacturing, Construction, Agriculture, Plantation and Services;
  - • Applications for foreign workers by employers / companies are subject to quota approval from the One Stop Approval Center (OSC), Ministry of Home Affairs;
  - • Be not less than 18 years old and not more than 45 years old at the time of application;
  - • Certified to pass the Immigration Security Clearance (ISC) certification performed in the source country.
  - • Certified healthy by a health screening center in the source country;
  - • Prospective employees are not included in the list of foreign individuals barred from entering in accordance with Section 8 (3) of the Immigration Act 1959/1963; and
  - • Foreign workers must be recruited from an authorized source country.
  - • Approval is needed from the Localisation Committee
  - • Member of the committee are Chief Minister’s Office, Labour Department, Immigration Department and STIDC.
  - • STIDC is member of the localization committee meeting. They process the letter of recommendation based on Immigration Department and Labour Department and State Localization Committee requirement. For those company they must registered with STIDC first.
2. Procedure:
  - • Employers need to prepare the supporting documents e.g SSM, manufacturing license, etc.
  - • Employers / companies need to sign up at msen3.sarawak.gov.my
  - • Employers / companies need to activate the employers’ account at JTK Sarawak after signing at msen3 website.
  - • An email will be sent to activate the account and related form will be provided for the employers/companies to fill in.
  - • Employers / companies need to go through an interview with SOCSO
  - • Employers / companies need to advertise the job position to the potential local workers. If no local citizens are interested with the job offered, employers may proceed with the foreign workers application.
  - • A report will be retrieved by JTK Sarawak and table to the localization committee for approval.
  - • Further information is available here

• Department of Labour of Peninsular Malaysia
• Local Authorities
• Department of Immigration
• Malaysian Investment Development Authority (MIDA)
• KWSP / EPF
• SOCSO
• HRD Corporation
• Minimum Standard for Workers Accommodation
The Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 was enforced to prescribe the minimum standards of housing for estate workers and their families.

Tax

• Royal Malaysian Customs Department (RMCD)
1. Requirements:
  - • Taxable goods manufacturers are required / liable to be registered when sales value of taxable goods has exceeded RM500,000 for 12 months period.
  - • Manufacturers who carry out sub-contract work on taxable goods where the VALUE of work performed exceeds RM500,000 for 12 months period.
  - • Further information is available here
2. Application Procedure:
  Application procedure is available here

Timber Specific Requirements

License

Transportation

Factory / Sawmill License

Manufacturing License

License

• State Forestry Department
1. 1. Requirements:
    - • Sarawak handling all mill licenses expect for sawmill license under Section 62 of the Forest Ordinance 2015.
  2. Documents required:
    - • Jadual Pertama form: four copies for the new application
    - • Four layout plans: site mill location, site mill building, design mill building and plants layout
    - • Copy of letter from related agencies
  3. Where to apply?
    - • Manual application to District Forestry Office
    - • The license application is subjected to applicable fees; depending on the type of industry and machines used. Different states impose different fee rates
    - • License to operate wood-based industry will be produced within a period of one month from the complete date of the factory constructed when meets all the conditions approval.

Transportation

• Removal Pass (RP)
1. Requirements:
  - • RP will be issued on site by Balai Pemeriksaan Hutan (BPH) officer for each conveyance load once the timber royalties and fees have been paid.
  - • RP carries a record of the type / species, volume of produce, and the royalty and forest development cess payable
2. Documents required:
  - • Logs Specification Form (LSF)
  - • Logs Specification Summary (LSS)
  - • Letter of Applications
3. Where to apply?
  - • Harwood Timber Sdn. Bhd. (HTSB) conducts the physical inspection of logs and issues the Endorsement Clearance Certificate (ECC) and the shipping / transportation pass.
  - • This is then followed by issuance of the Removal Pass (transit) by Forest Department of Sarawak before the logs can be transported from the Forest Checking Station either to the mill or to the export point.

• Land Public Transport Agency (APAD), Road Transport Department (JPJ), PUSPAKOM
1. Requirements:
  - • All vehicles and drivers must comply with the requirements of the Road Transport Act 1987 and Commercial Vehicles Licensing Board Act 1987
2. Documents required to comply:
  - • Vehicle license
  - • Driver license
  - • Vehicle inspection
  - • Vehicle specification guidelines

Factory / Sawmill License

• Factory / Sawmill License
1. Requirements:
  - • Sarawak handling all mill licenses expect for sawmill license under Section 62 of the Forest Ordinance 2015.
2. Documents required:
  - • Application form
  - • Supporting documents
3. Where to apply?
  - • Sarawak Timber Industry Development Corporation

Manufacturing License

• Malaysian Investment Development Authority (MIDA)
1. Requirements:
  - • Manufacturing firms with shareholders’ funds of RM2.5 million and above or employing 75 or more full-time employees:
    - • Need to apply for a manufacturing license (ML) from the Ministry of International Trade and Industry (MITI). Applications shall be submitted to MIDA, an agency of MITI
  - • Manufacturing companies below shareholders’ funds of RM2.5 million and employ less than 75 person:
    - • May apply for an exemption by submitting the ICA10 Form to MIDA
  - • For firms that want to enjoy MIDA’s benefits and incentives, they must have an ML or ICA10
2. Where to apply?
  - • MIDA e-Manufacturing Licence (e-ML)

Relevant Acts/Ordinances, Enactments and Regulations

Companies Act, 2016
Business Registration Act 1956
National Forestry Act 1984
National Forestry Act (Amended) 2022
Malaysian Timber Industry Board (Incorporation) Act 1973
Forest (Timber) Enactment 2015 (Sabah)
State Wood-Based Industries Enactment/ Wood-Based Industries Rules
Forest Enactment 1968 / Forest Rules (Sabah)
Forest Ordinance 2015/ Forest Rules (Sarawak)
Sarawak Timber Industry Development Corporation Ordinance, 1973
National Land Code (Revised 2020) (Act 828)
Land Ordinance Chapter 68 (Sabah)
Land Code Chapter 81 (1958 Edition) (Sarawak)
Local Government Act 1976
Local Government Ordinance 1961 (Sabah)
Local Authorities Ordinance 1996 (Sarawak)
Industrial Co-ordination Act 1975 (ICA)
Town and Country Planning Act 1976
Town and Country Planning Ordinance (Sabah Cap 141)
Street, Drainage and Building Act 1974
Buildings Ordinance, 1994 (Sarawak)
Fire Services Act 1988
Factories and Machinery Act 1967
Occupational Safety and Health Act 1994
Environmental Quality Act 1974
Immigration Act 1959/63
Labour Ordinance (Sabah Cap. 67)
Labour Ordinance Chapter 76 (1958 Ed.)
Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990
Emergency (Employees’ Minimum Standards of Housing, Accommodations and Amenities (Amendment) Ordinance 2021
Employees Provident Fund Act 1991
Employees’ Social Security Act 1969
Human Resources Development Berhad Act 2001
Sales Tax Act 2018
Service Tax Act 2018
Financial Procedure Act 1957
Road Transport Act 1987
Commercial Vehicles Licensing Board Act 1987

Background

Timber Specific Requirements

Import License

Import Permit

CITES Import Permit

Import License

• Sarawak Timber Industry Development Corporation (STIDC)
1. Requirements:
  - • Under Section 31 of the Act, the Government may prohibit the import of any goods from any specified country, territory or place outside Malaysia either absolutely or conditionally
  - • Importers can apply for import licenses from STIDC
  - • Import license is valid for 14 days
  - • General import procedure by RMCD
2. Documents required:
  - • Procedure for importation by STIDC
3. Where to apply?
  - • Application procedure can be accessed through STIDC

Import Permit

• Import Permit
1. Requirements:
  - • The import permit is to regulate the entry of plant and plant products to prevent the entry and spread of pests and diseases brought together with the imported material.
  - • Issues permit for the importation and exportation of live animal and animal product under the legislation of Malaysian Quarantine and Inspection Services Act 2011 (Act728) & Regulations.
2. Where to apply?
  Application can be made through dagang.net

CITES Import Permit

• CITES Import Permit
1. Requirements:
  - • For goods that are controlled under the International Trade in Endangered Species Act 2008, importers must apply for the CITES import permit.
  - • SFC is responsible for issuing the CITES Import Permit for Sarawak.
  - • When receiving the consignment of goods at the entry point, port or registered landing area, importers can apply for import license from the license issuing agencies.
  - • MAQIS will also carry out physical inspection and quarantine of the consignment to verify the import permit and the phytosanitary certificate from the exporting country.
  - • For approved consignment, importers must pay the service fee to obtain the property hammer mark and the Removal Pass before the consignment can be transported to the designated destination. Fee is not needed in Sarawak for imported timber / logs.
  - • Guideline for can be accessed through Department of Agriculture (DOA)
2. Documents required and where to apply:
  - • Application can be accessed through Sarawak Forestry Corporation

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
The Malaysian Quarantine and Inspection Services Act, 2011 [Act 728]
International Trade in Endangered Species Act 2008
Malaysian Timber Industry Board (Incorporation) Act 1973
Customs (Prohibition of Imports) Order 2023

Timber Specific Requirements

Export License / Permit

CITES Permit

Phytosanitary Certificate

Certificate of Origin

Export License / Permit

• Export License / Permit
1. Requirements:
  - • The Malaysian government may prohibit export of any goods to any country, territory or place outside Malaysia either absolutely or conditionally.
2. Guidelines and documents required:
  - • Information can be accessed through Sarawak Timber Industry Development Corporation (STIDC).
3. Where to apply:
  - • Registered with Dagangnet Technologies Sdn Bhd (http://www.dagangnet.com) as a user of ePermit System.

CITES Permit

• CITES Permit
1. Requirements:
  - • For goods that are controlled under the International Trade in Endangered Species Act 2008, exporters must apply for CITES Export and Re-Export Permit as stated under the Third Schedule of the Order.
2. Where to apply, guidelines and documents required:
  - • Sarawak Forestry Corporation (SFC)

Phytosanitary Certificate

• Phytosanitary Certificate
1. Requirements:
  - • A major requirement for timber and timber product export is PC.
  - • It is required when shipping regulated articles such as plants, plant products or other regulated articles to the importing country.
  - • This certificate aims to prevent the spread of plant pests and diseases through trade / movement of plants, plant products and regulated articles internationally.
  - • The Department of Agriculture Malaysia is responsible for issuing PC as per requirements of the Plant Quarantine Act 1976 and the Plant Quarantine Regulations 1981.
2. Where to apply, guidelines and documents required:
  - • Information can be accessed here.

Certificate of Origin

• Preferential Certificate of Origin
1. Requirements:
  - • The importing country might request for CO which certifies the origin of the goods.
  - • The Preferential Certificate of Origin (PCO) is a requirement under Free Trade Agreement (FTA) between Malaysia and signing countries.
  - • PCO is issued by the Ministry of International Trade and Industry (MITI), and it allows the importer to claim for preferential tariff rates based on Rules of Origin.
2. Guidelines and process flow to apply for PCO:
  - • MITI
3. Guidelines for ePCO:
  - • MITI
4. Where to apply:
  - • ePCO
Non-Preferential Certificate of Origin (NPCO)
1. Requirements:
  - • NPCO is required when importing country requests for it.
  - • It is issued by the Malaysian International Chamber of Commerce & Industry (MICCI), Federation of Malaysian Manufacturers (FMM), Sabah Timber Industries Association (STIA), and other chambers and associations authorized by MITI.
2. Guidelines and documents required:
  - • MICCI
  - • MITI

Relevant Acts/Ordinances, Enactments and Regulations

Customs Act 1967
International Trade in Endangered Species Act 2008
Plant Quarantine Act 1976
Plant Quarantine Regulations, 1981
Malaysian Quarantine and Inspection Services (Registration of Importers, Exporters and Agents) Regulations 2013
Free Trade Agreement (FTA) / Generalised System of Preferences (GSP)
Customs (Prohibition of Exports) Order 2017
Sabah Export Royalty on Round Log and Other Charges (Starting from 3 January 2022)

Forest & Sustainability

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Trade Information

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One-Stop Information Centre for Malaysian Timber Industry Licensing & Permit Application

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Sabah

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