Jun 2011
New export licensing requirements commencing in April 2011
Exports of goods and technology which have both civil and military potential uses, known as "dual use" goods, are controlled by way of export licenses. Malaysia has recently released its list of controlled goods for which licenses may be required. Exporters are strongly advised to prepare now to avoid any supply chain disruptions.
Affected industries include:
- Aerospace
- Bioscience / Pharmaceutical
- Chemical / Oil & Gas
|
|
Background
In July 2010, Malaysia passed the Strategic Goods Act requiring exporters of certain controlled goods to comply with export licensing procedures. In January 2011, the Malaysian government announced the list of controlled goods and technologies and issued implementing regulations. The control includes a wide range of "dual use" goods commonly traded by many companies in Malaysia. Companies exporting most categories of controlled goods are expected to be in full compliance with the Act by July 2011.
Recommended actions
To ensure supply chain continuity, it is imperative that companies in Malaysia take steps now to assess:
- Do they trade in good controlled under the Act?
- If so, which of the 3 types of export license contained in the Act is appropriate?
- Does the company have an Internal Compliance Program (ICP) in place?
- That will allow it to successfully apply for required export licenses?
- Does the company have procedures in place to identify prohibited transactions and future controlled goods?
How PwC can help
PwC has assembled an Asia based team of export controls specialists who assist companies in:
- Determining strategic goods risk exposure
- Determining applicable license(s)
- Designing ICPs
- Presenting application and ICP to the authorities
- Ad hoc export controls advice
