MPC17/10/08

Forwarding
Agents
Prepare RFD and
CMO
Pay port charges
Advice haulier on
container pick up
Pass the Gate pass
to Haulier
1
Importer
Documents
preparation
including (if
applicable)
-COO
documenta
tion from
FTA
Countries
-Applicatio
n of Import
Permit
- Collecting
shipping
documents
from bank
PIAs
Approval of
Import
Permit
Forwarding
Agent
Received
instruction for
cargo
clearance
- including
Document
preparation (if
applicable)
FA prepare and
Submit K1
electronically -
SMK-DNT
Haulier
Received Gate
Pass
Haulier prepare
CDA
Pick up container
out of port
Send container to
importer primes or
warehouse
Haulier prepare
Empty back form
and send to depot
Depot Advise
shipping agents
upon receipt of
empty container
Port Operator
Verify shipping
agent release
container
Verify container
release by
Customs
Issue gate pass to
FA
Haulier pick up
container from port
Port Operator
release container
& issue EIR
Cargo release at
port gate
Advise shipping
Agents on
container
Customs
Customs receive K1
electronically
Risk assessment via CVI
Customs received printed
K1& supporting documents
Verification of exemption if
relevant
Assessment of goods
Physical inspection if
necessary
Approved / release K1
Shipping Agent
Received RFD
Issue CMO
Advice on return
of empty
container
1
3
16a
13
2
7
14
16b
16a
17
A: Documents Preparation
D: Inland
Transportation &
Handling
B: Customs Clearance
& Tech Control
C: Ports &
Terminal
Handling
II. IMPORT FLOW FOR FULL CONTAINER LOAD (PORT
KLANG)
16c
PIAs
Physical
inspection if
applicable
Grant
Approval in
SMK
9
10
11
Shipping Agent /
Freight Forwarders
Exchange Bill of Lading
for Delivery Order
Submit Manifest to
Customs/ Port Operators
To submit discharge list to
Port Operator. 6 hrs prior
vessels arrival
5
6
Importer/ Bank
Make Duty Payment thru
Electronic
Manual
13
12a
12b
12c
15
16c
17 21
8
21
18
4
19
20
PROCESS INVOLVING NSW
SYSTEM
MPC17/10/08
2
II b. IMPORT TIMING

A B C D
Documents
Preparation

Customs
Clearance &
Technical
Control
Ports &
Terminal
Handling
Inland
Transportation
& Handling
Total

Source
9 days 1 day 2 days 2 days 14 days MALAYSIA by
World Bank
2 days 1 day 11/2 day 1- 2 days 51/2 61/2 days MPC/DNT/OTHERS
3 days 1-2 days
a
2 days
b
2 days 8 9 days

Note:
a Depending on availability of SMK Dagang Net system
b Including inspection by PIAs

MPC17/10/08
3
No Process Flow Document Process time Cost
1 Importer prepares necessary documents, including :
-COO documentation from FTA Countries (if applicable)
-Collecting shipping documents from banks (if applicable)
- Apply import permit from PIAs if applicable
COO
Shipping
Documents
Import permit
3 Working Days
3 Working Days
Pre-arrival
2 PIA approve Import Permit (if applicable) (note: 19 PIAs are
electronic, of which 15 are paperless and 3 will be onboard)
Import Permit RM 10 (DNT)
PIAs own
Fees
3 Importer instructs forwarding agent to clear cargo (together
with supporting documents such as bill of lading, permit,
invoice & packing list)
FA perform Document preparation if instructed by Importer
Bill of lading
Permit
Invoice
Packing list
1 day (all
documents in
order and for
normal
clearance)
No cost
4 Forwarding agents submit K1 electronically (CUSDEC)
through SMK-DNT interface.
K1 Preparation : 1 hr
A
MPC17/10/08
4
No Process Flow Document Process
Time
Cost
5 Forwarding agent obtains delivery order (DO), including
from shipping agent (that is, exchange Bill of Lading for
DO).
Shipping agent sends manifest to port operator and
Customs within 24 hours of arrival of vessel, in
accordance with Section 52, Customs Act. In practice,
they are allowed to submit much earlier
Delivery order
Manifest
20 mins
Pre-arrival
Collection of DO
charge P.Klang
free
Klang RM30 per
DO
Shah Alam RM50
Subang and
Petaling Jaya
RM80- document
fee
Others - RM 100
RM80 per B/L
(RM130 for Freight
Forwarders
Agency Fee)
EDI fee (RM30) per
B/L
6 Shipping agents submits Discharge list to Port Operator ,
6 hours prior to vessel arrival
Discharge List Pre-arrival No cost
7 Customs computer system automatically processes &
registers K1 and sends response back to forwarding
agent with registration number
K1 form Response
Time : 5
20 min
K1 : RM 0.60 per set
EDI charges: RM 1.20
per kB (RM 5 per K1)
Forwarding charges :
RM 120 RM 160 per
container
8 Risk assessment on K1 done by Customs Verification
Initiative (CVI) Unit at Customs Headquarter to identify
high risk consignments.
- Electronic :
-
Manual : 5
min
Process of doing-
no cost
B
MPC17/10/08
5
No Process Flow Document Process Time Cost
9 Forwarding agent informs OGA of the arrival of container &
that the approval of the import permit has been approved
OGA physical inspection done after customs clearance
K1 form OGA
inspection time
: 30 min
Movement
charge
(RM130/200)
RM10 per box
(Labour
charge)
10 If no physical inspection, OGA will grant approval in SMK. K1form,
PIA Permit
2 - 5 min No cost
11 Customs receives Form K1 and supporting documents for
Customs clearance.
a) Basic supporting documents : invoice, packing list and
Delivery Order (no D/O in case of EDO).
b) Other supporting documents such as permit, Certificate
of Origin, CJ 5/CJ 5A depending on transaction type.
(Applicable to parallel transactions only not applicable in
Paperless)
K1 form
Invoice
Packing List
Delivery Order
Permit
COO
CJ 5/CJ 5A
BG/G Bond
2 5 min No cost
12a For those consignments claiming Treasury/LMW exemption,
K1 and supporting documents have to be submitted to
Import Branch, North Port for the verification of exemption.
K1,
Treasury
Exemption
Letter
15 - 30 min
depending on
number of
items
No cost
12b Assessment of goods by Senior Customs Officer to
determine duties/taxes payable which includes the following
processes :
a) Verification of particulars declared against supporting
documents;
b) Instruction for physical inspection if necessary;
c) Classification/Valuation;
d) Approval/Release.
K1 form
Invoice
Packing List
Delivery Order
Permit
COO
CJ 5/CJ 5A
5 - 20 min No cost
B
MPC17/10/08
No Process Flow Document Process Time Cost
12c Physical / CVI inspection involves the following processes
:
a) Preparation for inspection such as submitting SSR to
port operator, moving container to inspection bay
and engaging carpenter to open container.
b) Actual physical /CVI inspection
* CVI if applicable
K1 form
Invoice
Packing List
a) Preparation : 1
2 hour
b) Actual inspection :
1-2 hour
EMC charges:
20 : RM 65
40 : RM 100
Labour fee :
RM 10 RM
30
13 Forwarding agent pays import duty on behalf of Importer
via :
a) Electronic Fund Transfer (which is only available
during banking hours);
b) Duty Net (24 x 7, through CIMB); or
c) Manual (through cheque or bank draft)
EFT Message :
PAYORD,
CREMUL,
CREADV
Manual: bank
draft or cheque
a) EFT : 20- 60 min
(different from Bank to
Bank)
b) Duty Net : Real time
Basis
c) Manual : 30 min
EFT charges
for EFT : RM
8.00 per
transaction
Actual charge:
Rm15 per
transaction
14 Customs receipts the K1 and Senior Customs officer signs
off the K1 form to authorize release of cargo. (Applicable
for parallel transactions)
If paperless transaction:
a) Auto-release after payment of duty/tax;
b) Printing of Customs Official Receipt (COR)
K1 form
COR
2 - 5 min
15 Forwarding agent prepare Request For Delivery (RFD)
and submit to Shipping agent. Shipping agent will advise
on Container Movement Order (CMO) to indicate where
the empty container is to be returned to. Forwarding agent
send RFD to Haulier.
(Applicable to parallel transactions only not applicable in
electronic)
RFD
CMO
B
C
MPC17/10/08
No Process Flow Document Process
Time
Cost
16a Port Operator verifies that shipping agent has released container
through Delivery Order or Electronic DO (EDO)
Forwarding agent pay port charges to Port Operator.
Supporting document required is port pass / Mykad for biometric
verification
Delivery Order
Electronic DO
1-2 mins
10-15
secs
No cost
16b Port Operator verifies that the container has been released by
Customs. Verification of release is based on Customs GCS
release or release made in port system by Customs officer
(manual)
Port Operator issues Gatepass/ EIR (Equipment Interchange
Receipt) to Forwarding Agent
Customs GCS
Release
Gate-pass/EIR
10-15
secs
2 mins
No cost
16 c FA then advise the haulier/transport company to pick the
container and passes the Gate pass to the haulier.
Haulier then book window hour of collection through port system
Gate-pass/EIR
Online
1 hour
1 min
No cost
17 Haulier/Transport company picks the container out of yard
/interchange
Gate-pass/EIR 20-40
mins
No cost
18 Port operator releases container out of port and issues EIR
(Equipment Interchange Receipt) to Haulier/transport company
Gate-pass/EIR 5 mins No cost
19 Customs and Port operator check documents (K1 form, EIR &
permit) for release at the gate from haulier
Gate-pass/EIR 30-60
secs
No cost
20 Port operator advise shipping agents when container is delivered
to haulier/ transport company
EDI CODECO
or online report
30 60
mins
(hourly)
No cost
C
MPC17/10/08
No Process Flow Document Process
Time
Cost
21 Haulier/Transport company sends container to Importer
premises or warehouse (this can be immediately upon pick-
up, or Haulier may send the container to their own warehouse
first)
Haulier returns empty container to pre-designated depot
Depot Advise shipping agents upon receipt of empty
container
CDA
Empty Back
Form
24 hrs
24 hrs
C
MPC17/10/08
9
Legend (Export and Import Flow):
PIAs - Permit Issuing Authorities
CMO- Container Movement Order
RFD- Request For Delivery
K2 Form- Customs declaration form for export
K1 Form- Customs declaration form for import
DNT- Dagang Net Technologies (e-service provider)
SMK-DNT- Electronic data interchange system used by
Customs for export declaration
CEPT- Common Effective Preferential Tariff
FMM- Federation of Malaysian Manufacturers
Shipping Agent/
Non Vessel
Operating
Common Carrier
Freight Forwarder/
Forwarding Agent
Submit freight
quotation and
finalise freight
charges
1
Exporter
Documents
preparation
-Invoice
-Packing List
-Shipping
Instruction
-Permit
MITI /
Chambers
Approval of
Preferential
/Non-
Preferential
COO (if
required)
PIAs
Approval of
Export Permit
(if applicable)
Forwarding Agent
a.) Received
instruction for cargo
clearance
b.) Prepare K2
c.) Apply for Permit (if
applicable)
Shipping Agent
a.) Issue of Shipping note &
CMO (if required)
b.) Pre-advise Port & Depot
Operator
c.) Release containers to
forwarding agent or shippers
Haulier
Received RFD &
CMO
Haulier Prepare CDA
Pick up of empty
(shipping depot) & full
container (exporter
warehouse)
Update seal number
to port system
Port Operator
Received
shipment/
consignment
details
Verifies booking
information
Exporter
Stuff & seal
container
Customs
Received K2 form
- SMK-DNT
K2 passed to PIA
(if applicable)
K2 vetted by Risk
Assessment
System to identify
High Risk Cargo
Non High Risk
Cargo, automatic
approval is given
Receipt of Duty
Payment (if
applicable)
Release of cargo
Update to Port
Operator on K2
release
Ship
Port Operator
loads container
on to ship
3
4
5
15
14
2
6
20
19
21
A: Documents Preparation
B: Inland Transportation &
Handling
C: Customs
Clearance
& Tech Control
D: Ports &
Terminal
Handling
I. EXPORT FLOW FOR FULL CONTAINER LOAD (PORT KLANG)
18
25
22
23 24
PIA
Inspection or
endorsement of
permit (if
required)
9
Depot
a.) Release
empty container
b.) Update
details to port
system &
Shipping agent
7
8
10
11
13
17
1
12
16
Importer &
Bank
Issue
Purchase
Order /
Advise on
LC (if
required)
1
PROCESS INVOLVING NSW
SYSTEM
2
A
No Process Flow Document Process Time Cost
1 Importer issues purchase order to exporter. An LC advise is
issued by the bank (for applicable shipments)
Exporter prepares commercial invoice, packing list &
shipping instruction (after the order is confirmed)
*Shipping booking can be done in advance
*Shipping instruction when all details are available
Purchase
Order
Letter of
Credit
Invoice
Packing list
Shipping
instruction
2 Working Days
(LC Advise)
1 Day
(Document
Preparation)
Overall 2 days
2. Submit freight quotation and finalise freight charges with
shipper.
- Receive and accept booking from shipper.
- Provide shipper with booking confirmation.
*Freight quotation and frieght charges can be done in advance
Freight
Quotation
Shipping
instruction
3. PIA approves export permit (if applicable) Export
permit
4. a.) Exporter books container with shipping agent through
forwarding agent
b.) Prepare K2 Form
c.) Apply for Export Permit from PIA (if applicable)
* Export Permit can be done in advance
Export
permit
Overall 2 days
4
3
No Process Flow Document Process Time Cost
5. a.) Shipping agent sends Container Movement Order (CMO)
to Forwarding Agent,
b.) Booking pre-advise is sent to port operator and depot
operator
c.) Release containers (depot location, size/type and volume)
to forwarding agents and shippers.
CMO 2 hours
(Documentation
subject to office
hours. Operation is
24 hrs)
6. Forwarding agent prepares Request For Delivery (RFD)
and submits it to haulier/transport company together with
CMO (24 to 48 hours before pick up date for haulier to
plan). Depots release empty container to haulier.
RFD
CMO
24 hours
(Subject to normal
Office hours if other
circumstances, 3
days )
7. a.) Haulier picks up empty container & delivers it to
exporters premises
b.) Depot updates container number to booking in Port
system and shipping agent.
nil 24 hours
(Subject to normal
Office hours if other
circumstances, 3
days )
8. Exporter stuffs the container, seals and informs haulier to
pick up the container
nil 1 day
B
No Process Flow Document Process Time Cost
9. Haulier picks up stuffed container and delivers it to port
Haulier prepare Container Dispatch Advice (CDA) Form
CDA Form
24 hrs
10. Update seal number to port system nil Overall under 24
hrs
11. Port Operator receive shipment/consignment details as
export pre-advise through online or EDI
nil 1 mins
12. Port operator verifies the container details and accepts
container at gate. The container is stacked in the
container yard based on declared export vessel
Export pre-
advise details
5 mins
B
No Process Flow Document Process Time Cost
13 FA submits electronic K2 form (through SMK-DNT), ( it
takes around 1 hour to prepare a K2 for 10 items, transmit
and receive customs response with registration number)
K2 form 1 hr
14 K2 is channeled by Customs to PIAs if required
Inspection or endorsement of permit by PIA (if applicable) 8 hrs (if
inspection
required)
15. K2 declaration is electronically processed by Customs after
approval is given by PIA
16. K2 declaration is vetted by Risk Assessment System and
High Risk Cargo will be identified for control procedure
(documentary check, inspection by scanning or physical
inspection)
17. For non-high risk cargo, automatic approval is given
18. Payment of duty, where applicable is received
electronically
C
No Process Flow Document Process Time Cost
19. Release is given automatically after full payment of Duty
is received by Customs
20. K2 release information is transmitted to Port Operator by
Customs
Note: Total
time for C 1
day average
Customs (10-15
minutes)
21. Port operator receive electronic release for release of
container from GCS/SMK or Port system release based
on hard-copy K2 (if, necessary)
GCS Release
K2 Document
30 mins
22. Shipping agent sends export manifest to Custom (within 7
days after vessel departure) and received by Customs
Manifest 5 days
C
D
No Process Flow Document Process Time Cost
23. Shipping agent advises shipping & freight charges
to shipper and/or forwarding agents
Freight Invoice
24. Forwarding agent pays shipping & freight
charges on behalf of exporter & collect B/L to
include Shipper /Forwarding agents
Bill of Lading
25. Exporter applies for Certificate of Origin if
applicable:
I)preferential (e.g. CEPT) from MITI
II)non-preferential from Chamber of Commerce
Certificate of Origin
- Invoice / PL / BL/
K2 required when
applying for CO
* Time taken for processes 22 to 25 are not measured as only internal processes
once ship has departed
D
8
Legend (Export and Import Flow):
PIAs - Permit Issuing Authorities
CMO- Container Movement Order
RFD- Request For Delivery
K2 Form- Customs declaration form for export
K1 Form- Customs declaration form for import
DNT- Dagang Net Technologies (e-service provider)
SMK-DNT- Electronic data interchange system used by
Customs for export declaration
CEPT- Common Effective Preferential Tariff
FMM- Federation of Malaysian Manufacturers