Free Trade Agreements (FTAs) are generally aimed at providing the means to achieve quicker and higher levels of liberalisation.

Introduction

Malaysia ‘s economic growth and development is highly enviable. In tandem to that, Malaysia ‘s trade policy is to pursue efforts towards creating a more liberalized and fair international trade environment. While Malaysia continues to accord high priority to the rule-based multilateral trading system under the World Trade Organisation (WTO), Malaysia is also pursuing regional and bilateral trading arrangements to complement the multilateral approach to trade liberalisation.

Free Trade Agreements (FTAs) are generally aimed at providing the means to achieve quicker and higher levels of liberalisation that would create effective market access between the participants of the FTA. Traditionally confined to trade in goods, trade in services and investment matters has been included in many FTAs.

The Ministry of International Trade and Industry (MITI) Malaysia’s portal has comprehensive information on the FTAs that involve Malaysia and ASEAN. Visitors to the portal may access and download information such as the signed FTA agreements, list of products that are accorded with the preferential tariff treatment and related application forms. Please log on to www.miti.gov.my for further information.

How FTA benefit Malaysian Exporters

FTA creates an integrated market offering increased business opportunities for trade in goods, services and investment between Malaysia / ASEAN and its FTA partner.

Malaysia

To enjoy the concession (lower) tariffs during import, exporters must:

STEP 1: KNOW YOUR PRODUCT HS CODE

Product classification is normally in accordance with the Harmonised Commodity Description and Ceiling System (HS). The related agency in determining HS Code is the Royal Customs Department.  For reference of HS Codes, please go tohttp://tariff.customs.gov.my

STEP2: CHECK PRODUCT COVERAGE

Exporters must check whether the goods are included under the tariff reduction list and determine what the rule of origin is applied. The list of concession rates and rules of origin for each agreement can be downloaded from the Ministry of International Trade and Industry’s (MITI) website – www.miti.gov.my

STEP 3: COST ANALYSIS APPROVAL

All exporters need to apply for Cost Analysis (CA) from MITI for each of the products to qualify it for the concession rates accorded under the FTA. The CA for a products is valid for two years. Application is directly to MITI and the application form can be downloaded from MITI website.

STEP 4: OBTAIN A CERTIFICATE OF ORIGIN

In order for a product exported by Malaysia to enjoy preferential treatment at our FTA partner country’s entry point, a Certificate of Origin (COO) endorsed by the Ministry of International Trade and Industry is required to be submitted to importing country customs for each consignment. Blank copies of the COO can be purchased from FMM.

 

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