MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI)

104/19/23 OUTREACH PROGRAMME

PURPOSETo provide latest updates on MITI policies on implementation of mandatory standards on

metal products204/19/23 OUTREACH PROGRAMME

• Introduction to Mandatory Standards

• Objectives of Mandatory Standards

• Chronology of Implementation

• Implementation of Mandatory Standards

• Exemption of COA

• Simplification of Application Procedures

• Updates on the Implementation of Mandatory Standards

• Conclusion

SCOPE….WHAT WILL BE PRESENTED?

304/19/23 OUTREACH PROGRAMME

4

• Under the IMP3 (2006-2020):- develop, introduce and enforce mandatory

standards on iron and steel products; and

- enter into MRAs with trading partners.

• The absence of mandatory standards has caused difficulties in ensuring the required quality for locally produced and imported products.

• Mandatory Malaysian Standards on iron and steel products will be imposed in stages for both imported and locally produced products of iron and steel as stipulated under IMP3.

04/19/23 OUTREACH PROGRAMME

INTRODUCTION OF MANDATORY STANDARDS

• To ensure only products of acceptable quality are imported or produced locally;

• To protect the interests of local industries, consumers and environment; and

• Safeguard product quality, safety, technical standards to meet health, safety and environment requirements.

504/19/23 OUTREACH PROGRAMME

OBJECTIVES OF MANDATORY STANDARDS

604/19/23 OUTREACH PROGRAMME

CHRONOLOGY OF IMPLEMENTATION

• On 19 June 2003, the Government introduced Malaysian Mandatory Standards on 4 tariff codes of wire products:

-- 7217.10.000;7217.10.000;-- 7308.40.900;7308.40.900;-- 7312.10.000; 7312.10.000; andand-- 7314.39.000.7314.39.000.

• Any products fall under these tariff codes must get Certificate of Approval (COA) issued manually by CIDB.

7

CHRONOLOGY OF IMPLEMENTATION (Cont.)• Effective 15 November 2008, mandatory standards have been

enforced on 57 tariff codes of iron and steel products: - Billets; - Steel bars;- Wire rods; - Angles, shapes and sections; and- Non-alloy steel.

• Effective 1 August 2009, mandatory standards were enforced on 627 tariff codes:

- HRC (Hot Rolled Coils);- CRC (Cold Rolled Coils); and- Pipes and tubes.

• Effective 13 August 2009, MITI has temporarily suspended the imposition of mandatory standards enforced on 1 August 2009 to address implementation issues.

04/19/23 OUTREACH PROGRAMME

8

CHRONOLOGY OF IMPLEMENTATION (Cont.)

• On 13 October 2009, mandatory standards on 187 tariff lines for iron and steel were enforced and superseded earlier Orders:- 57 tariff lines made mandatory on 15 Nov. 2008; and- 627 tariff lines made mandatory on 1st August 2009.

• Products include intermediate raw materials such as:- HRC; - CRC; - Steel bars;- Billets; - Sections; - Wire

rods;- Pipes and tubes; - Scaffodling; - Sheet piles;- Rails; and - anhole covers.

04/19/23 OUTREACH PROGRAMME

• Importation enforcement under Customs Order (Import Prohibition).

• Importation must acquired CERTIFICATE OF APPROVAL (COA) issued based on testing and verification for standard compliances.

• Enforcement agencies/Issuance bodies:- CIDB for construction products; and- SIRIM QAS Intl. for non-construction & manufacturing

products.

04/19/23 OUTREACH PROGRAMME 9

IMPLEMENTATION OF MANDATORY STANDARDS

• Testing BodiesSIRIM BerhadIKRAM QA Services Sdn. Bhd; andAny accredited laboratories/testing bodies as recognised by

Standards Malaysia

• KKR is amending the CIDB Act 1994 which will impose mandatory standards on imported and local materials for usage in construction sector:

passed at the Parliament on 12 July 2011; andscheduled for implementation in 2012.

04/19/23 OUTREACH PROGRAMME 10

IMPLEMENTATION OF MANDATORY STANDARDS (Cont)

(a) Automatic Exemption

• Manufacturers with Licensed Manufacturing Licensed Manufacturing WarehouseWarehouse (LMW) status and companies operating in Free Industrial Zones Free Industrial Zones (FIZ); or

• Importation per item weighing 500kg and below500kg and below.

EXEMPTION FROM THE COA REQUIREMENT

04/19/23 11OUTREACH PROGRAMME

b) Based on application basis

• Manufacturers (Tier 1 & Tier 2) who are directly involved in oil and gasoil and gas, automotiveautomotive, maritime or shipbuildingmaritime or shipbuilding, aerospaceaerospace and E&EE&E sectors; and

• Steel service centresSteel service centres, the exemption will be considered only for products imported for the consumption of oil and gas, automotive, maritime or shipbuilding, aerospace and E&E sectors.

EXEMPTION FROM THE COA REQUIREMENT (Cont)

04/19/23 12OUTREACH PROGRAMME

• Online COnline COA applicationOA application via Dagang Net since 13 October 2009;

• Testing and verification prior to the issuance of COA will take 1-3 working days1-3 working days;

• To avoid delays and additional charges in customs clearance at customs entry points, SIRIM and CIDB will issue temporary COAtemporary COA to importers to transport the imported transport the imported products products to their factory premisesfactory premises, prior to product testing and verification process;

SIMPLIFICATION OF APPLICATION PROCEDURES

04/19/23 13OUTREACH PROGRAMME

SIMPLIFICATION OF APPLICATION PROCEDURES

• The measure to recognise testing and recognise testing and verification reportsverification reports from accredited foreign laboratories under the mutual recognition arrangement (MRAMRA) is encouragedencouraged to simplify compliance to mandatory standards, subject to the approval from the Department of Standards; and

• Rate of charges for testing and verification, as well as issuance of COA, has been reducedreduced by SIRIM by 39%39% in 2009.

UPDATES ON THE IMPLEMENTATION OF MANDATORY STANDARDS Committee for application of COA exemption has been

established to discuss issues arising from the implementation of mandatory standards.

Committee members - officials from SIRIM QAS Intl, CIDB, MOF, Customs, MIDA and Standards Malaysia. The Committee will be chaired by Senior Director, Sectoral Policy & Investment Affairs, MITI.

TOR of the Committee are: to verify applications received by MITI for COA

exemption; to address and discuss any issues with respect to the

implementation of COA; To update & monitor the issuance of COA by SIRIM QAS

Intl and CIDB; and to review the procedures and guidelines for COA.04/19/23 15OUTREACH PROGRAMME

1616

IMPLEMENTATION OF MANDATORY STANDARDS ON ALUMINIUM PRODUCTS

• Only products comply with mandatory standards are allowed to be imported and produced locally;

• To ensure raw materials in end products meet the quality and safety requirements;

• To monitor importation of sub-standards products;

• To enhance competitiveness and quality of local aluminium industry; and

• To reduce dependency on imported products as local producers are able to meet required standards.

04/19/23 OUTREACH PROGRAMME

17

Cooking Equipment

powerlines

furniture

Construction

Transport

Aluminium usage

packaging

04/19/23 OUTREACH PROGRAMME

HS Code Description Application Standard Application

HS 7606 11 000 Aluminium plates, sheets and strip; of a thickness exceeding 0.2 mm, rectangular (include square), whether alloyed or unalloyed Building material,

signage, fabrication component and other engineering applications

MS2040:2007

HS 7606 12 000

HS 7606 91 000 Other aluminium plates, sheets & strips; of a thickness exceeding 0.2 mm: whether alloyed or unalloyedHS 7606 92 000

18

Aluminium products for Mandatory Standards

04/19/23 OUTREACH PROGRAMME

HS Code Description Application Standard Applicatio

n

HS 7607 11 000 Aluminium foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials), of a thickness (excluding any backing) not exceeding 0.2mm, not backed: rolled but not further worked

Material for manufacturing of air-cond, building insulation and other types of food packaging

MS1848:2005

HS 7607 19 000 Other aluminium foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials), of a thickness (excluding any backing) not exceeding 0.2mm not backed

19

Aluminium products for Mandatory Standards (Cont.)

04/19/23 OUTREACH PROGRAMME

04/19/23 OUTREACH PROGRAMME 20

Schedule of Implementation

• To be enforced based on the current procedures for mandatory standards on iron & steel:

Importation enforcement under Customs Order (Import Prohibition).

Enforcement will be divided into construction and manufacturing products. Importation must acquired CERTIFICATE OF APPROVAL issued based on testing and verification for standard compliances:

- CIDB for construction products; and- SIRIM QAS Intl. for non-construction & manufacturing

products.

04/19/23 OUTREACH PROGRAMME 21

Enforcement Agencies/Issuance Bodies

• Implementation of mandatory standards will: minimise importation of sub-standards products; ensure consumer’s safety and health; and support development and competitiveness of local producers by

producing high quality products that meet international standards.

The absence of mandatory standards had caused difficulties in ensuring the required quality for locally produced and imported products.

Mandatory Standards on metal products would be accelerated, implemented and enforced in stages for both imported and locally produced products.

CONCLUSION

04/19/23 22OUTREACH PROGRAMME

Thank You

2304/19/23 OUTREACH PROGRAMME