The Industrial Coordination Act 1975 provides for the processing of licences for manufacturing and production concerns. Any person or persons intending to engage in any manufacturing or production activity is required to obtain a licence from the relevant Licensing Officer before any such manufacturing activity can be undertaken.

The Licensing Officer in this case refers to the Secretary-General of the International Trade and Industry Ministry. Under ICA regulations, only manufacturing concerns with a shareholder fund base of RM2.5 million and above, or having 75 or more full-time employees, are allowed to apply for a licence.

Under current Malaysian import trade policy, most imports can be admitted under an open general licensing regime. However, specific import licences are required for certain controlled items which are intended for import into the country.

These items include explosives and firearms, motor vehicles, plants, certain pharmaceuticals, tin ore, soil samples, and various foodstuffs. A restrictive import licensing regime is also charged on heavy construction equipment, electrical household appliances, and iron and steel products. Applications for import licences should indicate the identities of the purchaser and supplier and a general description of the items and market value.

The customs tariff regime in Malaysia is based on the Harmonized Commodity Description and Coding System of goods classification. Tariff duties are from 2% to 60%, with an average tariff level of 15%. Higher duties are imposed on so-called "luxury" items like liquor and cigarettes and items that are deemed to be in direct competition with locally produced goods.

All imported beef and poultry products must be from certified "halal" sources. Items prohibited from being imported include corrosive chemicals and any "indecent or obscene" materials, and all items from the former Yugoslavia (Serbia-Montenegro) and Israel are prohibited.

Malaysian Licensing Prerequisites for Direct-Selling Companies