MBAM - RESOURCES-IMPORT LICENSING REQUIREMENT FOR CONSTRUCTION MACHINERIES

RESOURCES-IMPORT LICENSING REQUIREMENT FOR CONSTRUCTION MACHINERIES

During the recently concluded MITI Industry dialogue 2007, the government announced it will remove the import licensing requirement for 35 tariff lines in two stages over the next two years after reviewing 48 tariff lines involving machinery and equipment.The list of machinery and equipment that will have its import license (AP) removed is as below:-

LIST OF MACHINERY AND EQUIPMENT THAT IMPORT LICENSE WILL BE REMOVED EFFECTIVE 1.1.2008

No.	HS CODE	DESCRIPTION	MFN TARIFF *	CEPT TARIFF **
1	842710000	Self propelled trucks powered by an electric motor	5%	Nil
2	842720000	Other self-propelled trucks	5%	Nil
3	842790000	Other trucks fitted with lifting and handling equipment	5%	Nil
4	842930000	Scrapers, self propelled	5%	Nil
5	842940200	Tamping Machines	5%	Nil
6	842952000	Machinery with a 360 degree revolving super structure	5%	Nil
7	842959000	Other mechanical shovels, excavators and shovel loaders, self propelled	10%	Nil
8	843010000	Pile-drivers and Pile extractors	20%	Nil
9	843031000	Coal or rock cutters and tunneling machinery:- self-propelled	20%	Nil
10	843039000	Coal or rock cutters and tunneling machinery, o/t self propelled	20%	Nil
11	843041000	Other boring or sinking machinery:- self-propelled	10%	Nil
12	843049110	Wellhead module, for use in oil drilling operations	20%	Nil
13	843049120	Integrated Production Module, for use in oil drilling operations	20%	Nil
14	843049900	Other boring or sinking machinery, o/t self-propelled	5%	Nil
15	843050000	Other Machinery, self propelled	20%	Nil
16	843061000	Other Machinery, not self propelled:- tamping or compacting machinery	10%	Nil
17	843069000	Other Machinery, not self propelled: Other	20%	10%
18	843110000	Parts for pulley tackle & hoist o/t skip hoists	5%	Nil
19	843120100	Parts for self propelled trucks powered by an electric motor and other self-propelled trucks	5%	Nil
20	843120200	Parts for trucks fitted with lifting or handling equipment	5%	Nil
21	843120900	Other parts for fork-liftrucks	5%	Nil
22	843141100	Parts of buckets, shovels, grabs&grips for heading no. 84.26	5%	Nil
23	843141900	Parts of buckets, shovels, grabs&grips, other	10%	Nil
24	843142000	Parts for Bulldozer or angle dozer blades	10%	Nil
25	843143000	Parts for boring and sinking machinery	10%	Nil
26	843149100	Parts for road rollers, vibratory and others	5%	Nil
27	843149210	Parts for straddle carriers % crane trucks on tyres	5%	Nil
28	843149290	Parts for mobile lifting frames on tyres	5%	Nil
29	843149900	Other parts of machinery	10%	Nil

LIST OF MACHINERY AND EQUIPMENT THAT IMPORT LICENSE WILL BE REMOVED EFFECTIVE 1.1.2009

No.	HS CODE	DESCRIPTION	TARIF MFN*	TARIF CEPT**
1	842911000	Track-laying, bulldozers & angledozers	20	Nil
2	842919000	Other bulldozers & angledozers	20	Nil
3	842920000	Graders and levelers	20	Nil
4	842940110	Road rollers, vibratory	25	5
5	842940190	Road rollers, others	5	Nil
6	842951000	Front-end shovel loaders	10	Nil

*Most Favored Nation Tariff (MFN)

The most favored nation (MFN) principle is where each Contracting Party (member state) must be accorded treatment no less favorable than any other Contracting Party. A country, which enjoys MFN regime is entitled to import duties as stipulated in the Custom Tariff Book.

**Common Effective Preferential Tariff (CEPT)

CEPT is cooperative arrangement among ASEAN Member States to reduce intra-regional tariffs and remove non-tariff barriers over a 10 year period commencing 1 January 1993. For goods which still has existing tariff, it will be the same in all participating ASEAN countries.