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License manufacturing warehouse

FAQ

License manufacturing warehouse

FREQUENTLY ASKED QUESTIONS

Licensed Manufacturing Warehouse is established under the provision of section 65/65A of the Customs Act 1967. A LMW is granted to any person for warehousing and manufacturing approved products on the same premise. It is primarily intended to cater for export oriented industries.

In order to apply for a LMW license, the manufacturer shall fulfil the terms as stated below:

  1. Manufacturers who own a Manufacturing License under The Industrial Co-ordination Act 1975 (ICA) or have an exemption letter issued by the Malaysian Investment Development Authority (MIDA).
  2. Manufacturing that conforms to the manufacturing interpretation of Section 2 (1), the Customs Act 1967.
  3. Manufacturers that exporting more than 80% of the total value of finished goods for 12 months.

The manufacturer can apply by submitting at the nearest Customs Office which is close to the manufacturing premises, subject to conditions and procedures. 

The documents required are:
  • Covering letter
  • Form JKED No 1
  • Form A – Application for Licensed Manufacturing/ Warehouse under Section 65/65A of the Customs Act 1967
  • Copy of Certificate of Fitness
  • Copy of business license/ certificate issued by Local Authority
  • Company registration documents (Form A and D; M&A, Form 9, Form 49, Form 44 Form 24)
  • Copy of Manufacturing License issued under the ICA 1975
  • Location plan, layout plan, elevation plan (certified by Registered Architect)
  • Flow chart of the manufacturing process
  • List of machineries and tools, raw material/ components, finished goods
  • Input/ output ratio
  • Rental of premises agreement letter
  • A passport size photo and copy of identification card for each Director
  • Other relevant documents
The activities allowed at a License Manufacturing Warehouse are:
  • Value-added activity
  • Re-manufacturing, repairing and servicing
  • International Procurement Center (IPC)
  • Regional Distribution Center (RDC)

A Manufacturing Bonded Warehouse is also known as a Licensed Manufacturing Warehouse (LMW) in Malaysia, as defined by section 65/65A of the Customs Act 1967. Any individual can apply for a LMW if they wish to warehouse and manufacture approved products on the same premises.

The same tax benefits are available to LMW as they are to FIZ, such as total tax exemption for raw materials, components, machinery, and equipment used directly in the production process.

Customs duty exemption is given to all raw materials and components used directly in the manufacturing process of approved produce from the initial stage of manufacturing until the finished product is finally packed ready for export.

The LMW holder must provide DHL Express with the below documents prior to importation

  • LMW License
  • LMW Exemption List and Approval

The approval is given by the Industrial Department of RMCD for importation of raw materials, packaging, machinery and tools as well as return shipments due to various reasons.

Movement Declaration Form Remarks
Overseas Import into LMW K1  
Domestic into LMW K9 Declaration is not done by DHL Express Malaysia
LMW to PCA (Domestic) K9 Declaration is not done by DHL Express Malaysia
LMW to Bonded Warehouse K2  
FZ to LMW K1  
LMW to FZ K2  
LMW to Overseas K2  

It is the responsibility of the companies that are situated in the LMW to have a document control process with regards to shipment movement. DHL Express will only provide the copy of the Invoice, Waybill and the Declaration Form to the companies during shipment delivery.

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