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TEXT HOME MALAYSIAN EXPORTERS | Going Global | Beginner's Guide to Exporting

Beginner's Guide to Exporting

Exporting your firm's products or services can provide you a valuable opportunity for growth.

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Getting Started

Why Export?

Companies export because of the following reasons :

  • To diversify markets and reduce risk
  • To expand sources of revenue
  • To enhance competitiveness through product improvement and economies of scale

 

Are You Ready?

Before venturing into export markets, companies should consider :  

1. Production Resources

  • Secured sufficient raw material
  • able to expand production capacity
  • Multi-skills and multi-lingual work force
  • Able and manage Original Equipment Manufacture (OEM) production and/or Original Brand Manufacturer (OBM)
  • Ability to cater for export demand
  • Adequate supply of raw materials.

2. Financial Resources

INTERNAL

  • Sufficient cash flow to sustain the export business (at least 3 months)
  • Strong financial standing
  • Strong financial support from banks and financial institutions

EXTERNAL

  • Access to government financial incentives
  • Commercial banks
  • Deal effectively with different monetary systems.

3. Human Resources

  • Availability of local staff
  • Knowledgeable and experiences export staff
  • Dependence on foreign staff
  • Requirement of foreign expert / skilled workers.

4. Marketing Resources

  • Sufficient marketing collaterals that meet international standards
  • Able to sell direct to buyers / importers either through personal contacts or appointed agents
  • Work with buying houses, procurement agents and representative offices
  • Knowledge in market entry requirements and market needs.

5. Legal Resources

  • Comply with international legal requirements
  • Protection on Intellectual Property Rights (IPRs)
  • Understanding of Free Trade Agreement (FTA)

 

Export Rules and Regulations

The following export rules and regulations may be useful as guide or reference:

Restriction on Exports

  • Goods can be exported to any country except Israel
  • Most goods can be freely exported
  • Exports are controlled only in certain cases as follows:
    • Gazetted and / or controlled goods (usually this apply when the goods are in short supply)
    • Goods sensitive in nature and strategic or hazardous items
    • Goods regulated or prohibited by international agreements onto protect endangered wildlife species.

Products Under Control

There are three schedules of item that control the kinds of products that can be exported and as follows:

SCHEDULE CONTENT EXAMPLES
First

Consists of items which are absolutely prohibited from being exported to all countries and

Prohibited to be exported to Haiti
  • Turtle eggs
  • Rattan
  • Export of petroleum, petroleum products and
  • Arms and related materials of all types.
Second Consists of goods which can be exported if the exporter can get an Export License
  • Livestock and its products
  • Grains
  • Minerals and
  • Toxic and hazardous wastes.
Third

Consists of items which can be exported only in accordance with the provided manner and

Export strictly under the government’s control.
  • Livestock and its products
  • Grains
  • Minerals and
  • Toxic and hazardous wastes.

The controlled goods are under the Customs (Prohibition of Exports) order 1988, Customs Act 1967.

The Ministry of International Trade and Industry (MITI) and Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) administer licenses for most of the controlled goods. You are required to check with the relevant ministries from time to time.

General Export Restrictions

The following goods are not acceptable for carriage:

  • Perishable foodstuffs and food and beverages requiring refrigeration or other environmental control
  • Pornography
  • Hazardous waste (including but not limited) to used hypodermic needles or syringes or other medical waste.

An important point to note is that depending on the destination, additional restrictions may apply. Various regulatory clearances, (maybe have health or environment consequences) in addition to customs clearance may be required for certain commodities, thereby extending the transit time.

Malaysia’s Restrictions on Goods Subject to Export Controls

The following goods are restricted by law and subject to import approval:

  • Products derived from animals or birds including eggs 
  • Plants and plant products 
  • Rubber, timber and granite 
  • All dangerous drugs (including morphine, heroin, opium etc.) 
  • Rice including rice flour, rice polishing, rice bran and rice vermicelli 
  • Corals, cockles 
  • Sugar 
  • Textiles and garments for exportation to Canada, European Union (EU), Norway, Turkey and the United States (US).

info : For further clarifications, please refer to Ministry of International Trade and Industry (MITI) www.miti.gov.my.