II. IMPORT FLOW FOR FULL CONTAINER LOAD …

1 MPC17/10/08 ForwardingAgentsPrepare RFD and CMOPay port chargesAdvice haulier on CONTAINER pick upPass the Gate pass to Haulier1 ImporterDocuments preparation including (if applicable)-COO documentation from FTA Countries -Application of IMPORT Permit -Collecting shipping documents from bankPIAsApproval of IMPORT PermitForwardingAgentReceived instruction for cargo clearance- including Document preparation (if applicable)FA prepare and Submit K1 electronically -SMK-DNTH aulierReceived Gate PassHaulier prepare CDAPick up CONTAINER out of portSend CONTAINER to importer primes or warehouseHaulier prepare Empty back form and send to depotDepot Advise shipping agents upon receipt of empty containerPort OperatorVerify shipping agent release CONTAINER Verify CONTAINER release by CustomsIssue gate pass to FAHaulier pick up CONTAINER from portPort Operator release CONTAINER & issue EIRC argo release at port gateAdvise shipping Agents on containerCustomsCustoms receive K1 electronicallyRisk assessment via CVIC ustoms received printed K1& supporting documentsVerification of exemption if relevantAssessment of goodsPhysical inspection if necessaryApproved / release K1 Shipping AgentReceived RFDI ssue CMOA dvice on return of empty CONTAINER 1316a13271416b16a17A.

2 Documents PreparationD: Inland Transportation & HandlingB: Customs Clearance & Tech ControlC: Ports & Terminal HandlingII. IMPORT FLOW FOR full CONTAINER load (PORT KLANG)16cPIAsPhysical inspection if applicable Grant Approval in SMK91011 Shipping Agent / Freight ForwardersExchange Bill of Lading for Delivery OrderSubmit Manifest to Customs/ Port OperatorsTo submit discharge list to Port Operator. 6 hrs prior vessels arrival 56 Importer/BankMake Duty Payment thru Electronic Manual1312a12b12c1516c17218211841920 PROCESS INVOLVING NSW SYSTEMMPC17/10/082II 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 daysa 2 daysb 2 days 8 9 days Note: a Depending on availability of SMK Dagang Net system b Including inspection by PIAs MPC17/10/083 NoProcess FlowDocumentProcess timeCost1 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 applicableCOOS hipping DocumentsImport permit3 Working Days3 Working DaysPre-arrival2 PIA approve IMPORT Permit (if applicable) (note.)

3 19 PIAs are electronic, of which 15 are paperless and 3 will be onboard) IMPORT PermitRM 10 (DNT)PIA s own Fees3 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 ImporterBill of ladingPermitInvoicePacking list 1 day (all documents in order and for normal clearance)No cost4 Forwarding agents submit K1 electronically (CUSDEC) through SMK-DNT : 1 hrAMPC17/10/084 NoProcess FlowDocumentProcess TimeCost5 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 earlierDelivery order Manifest20 minsPre-arrivalCollection of DO charge freeKlang RM30 per DOShah Alam RM50 Subang and Petaling Jaya RM80- document feeOthers - RM 100RM80 per B/L (RM130 for Freight Forwarders Agency Fee)EDI fee (RM30) per B/L6 Shipping agents submits Discharge list to Port Operator , 6 hours prior to vessel arrivalDischarge ListPre-arrivalNo cost7 Customs computer system automatically processes & registers K1 and sends response back to forwarding agent with registration numberK1 formResponse Time : 5 20 minK1 : RM per setEDI charges: RM per kB (RM 5 per K1)Forwarding charges : RM 120 RM 160 per container8 Risk assessment on K1 done by Customs Verification Initiative (CVI) Unit at Customs Headquarter to identify high risk consignments.

4 -Electronic : -Manual : 5 minProcess of doing-no costBMPC17/10/085 NoProcess FlowDocumentProcess TimeCost9 Forwarding agent informs OGA of the arrival of CONTAINER & that the approval of the IMPORT permit has been approvedOGA physical inspection done after customs clearanceK1 formOGA inspection time : 30 minMovement charge (RM130/200)RM10 per box (Labour charge)10If no physical inspection, OGA will grant approval in ,PIA Permit2 - 5 minNo cost11 Customs receives Form K1 and supporting documents for Customs ) 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, CJ5/CJ5A depending on transaction type. (Applicable to parallel transactions only not applicable in Paperless)K1 formInvoicePacking ListDelivery OrderPermitCOOCJ5/CJ5 ABG/G Bond2 5 minNo cost12aFor those consignments claiming Treasury/LMW exemption, K1 and supporting documents have to be submitted to IMPORT Branch, North Port for the verification of exemption.

5 K1,Treasury Exemption Letter15 - 30 min depending on number of itemsNo cost12bAssessment 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) formInvoicePacking ListDelivery OrderPermitCOOCJ5/CJ5A5 - 20 minNo costBMPC17/10/08 NoProcess FlowDocumentProcess TimeCost12cPhysical / 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 applicableK1 formInvoicePacking Lista) Preparation : 1 2 hourb) Actual inspection : 1-2 hourEMC charges:20 : RM 65 40 : RM 100 Labour fee : RM 10 RM 3013 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); orc) Manual (through cheque or bank draft) EFT Message : PAYORD, CREMUL, CREADVM anual: bank draft or chequea) EFT : 20-60 min (different from Bank to Bank)b) Duty Net : Real time Basisc) Manual : 30 minEFT charges for EFT : RM per transactionActual charge: Rm15 per transaction14 Customs receipts the K1 and Senior Customs officer signs off the K1 form to authorize release of cargo.

6 (Applicable for parallel transactions)If paperless transaction:a) Auto-release after payment of duty/tax;b) Printing of Customs Official Receipt (COR)K1 formCOR2 - 5 min15 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)RFDCMOBCMPC17/10/08 NoProcess FlowDocumentProcess TimeCost16aPort 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 verificationDelivery OrderElectronic DO1-2 mins10-15 secsNo cost16bPort Operator verifies that the CONTAINER has been released by Customs.

7 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 AgentCustoms GCS ReleaseGate-pass/EIR10-15 secs2 minsNo cost16 cFA then advise the haulier/transport company to pick the CONTAINER and passes the Gate pass to the then book window hour of collection through port system Gate-pass/EIRO nline1 hour1 minNo cost17 Haulier/Transport company picks the CONTAINER out of yard /interchange Gate-pass/EIR20-40 minsNo cost18 Port operator releases CONTAINER out of port and issues EIR (Equipment Interchange Receipt) to Haulier/transport company Gate-pass/EIR5 minsNo cost19 Customs and Port operator check documents (K1 form, EIR & permit) for release at the gate from haulierGate-pass/EIR30-60 secs No cost20 Port operator advise shipping agents when CONTAINER is delivered to haulier/ transport companyEDI CODECOor online report30 60 mins (hourly)No costCMPC17/10/08 NoProcess FlowDocumentProcess TimeCost21 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 depotDepot Advise shipping agents upon receipt of empty containerCDAE mpty Back Form24 hrs24 hrsCMPC17/10/089 Legend (Export and IMPORT Flow).

8 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 ManufacturersShipping Agent/ Non Vessel Operating Common CarrierFreight Forwarder/ Forwarding AgentSubmit freight quotation and finalise freight charges1 ExporterDocuments preparation-Invoice-Packing List-Shipping Instruction-PermitMITI / ChambersApproval of Preferential /Non-Preferential COO (if required)PIAsApproval of Export Permit (if applicable)Forwarding Agenta.) Received instruction for cargo clearanceb.) Prepare K2c.) Apply for Permit (if applicable)Shipping Agenta.

9 Issue of Shipping note & CMO (if required)b.) Pre-advise Port & Depot Operatorc.) Release containers to forwarding agent or shippersHaulierReceived RFD & CMOH aulier Prepare CDAPick up of empty (shipping depot) & full CONTAINER (exporter warehouse)Update seal number to port systemPort OperatorReceived shipment/ consignment detailsVerifies booking information ExporterStuff & seal containerCustomsReceived K2 form - SMK-DNTK2 passed to PIA (if applicable)K2 vetted by Risk Assessment System to identify High Risk CargoNon High Risk Cargo, automatic approval is givenReceipt of Duty Payment (if applicable)Release of cargoUpdate to Port Operator on K2 releaseShipPort Operator loads CONTAINER on to ship345151426201921A: Documents PreparationB: Inland Transportation & HandlingC: Customs Clearance & Tech ControlD: Ports & Terminal HandlingI. EXPORT FLOW FOR full CONTAINER load (PORT KLANG)1825222324 PIAI nspection or endorsement of permit (if required)9 Depota.

10 Release empty CONTAINER b.) Update details to port system & Shipping agent781011131711216 Importer & BankIssue Purchase Order / Advise on LC (if required)1 PROCESS INVOLVING NSW SYSTEM2 ANoProcess FlowDocumentProcess TimeCost1 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 availablePurchase OrderLetter of CreditInvoice Packing list Shipping instruction2 Working Days (LC Advise)1 Day (Document Preparation)Overall 2 quotation and finalise freight charges with Receive and accept booking from Provide shipper with booking confirmation.*Freight quotation and frieght charges can be done in advanceFreight QuotationShipping approves export permit (if applicable)Export ) Exporter books CONTAINER with shipping agent through forwarding agentb.