EXPORT FLOW FOR BARTER TRADE (PORT KLANG) PIAs Importer & Bank Issue Purchase Order / 1 Advise on LC (if applicable) Approval of Export Permit (if 6 applicable) Forwarding Agent Received 3 instruction for cargo clearance 4 Apply for Permit (if applicable) Exporter Documents preparation 2 -Invoice -Shipping Instruction 5 Prepare and submit K2 electronically to SMK-DNT 7 Book space through SA Request for 8 Transport A: Documents Preparation PIA Shipping Agent Issue Shipping 9 Instruction to Jetty/port Operator Forwarding Agent Inspection or endorsement of 11 permit (if required) 17 Transporter Received request 10 of transport from FA Pick up cargo from exporter premise and deliver to Jetty/port Operator’s warehouse. B : Inland Transportation & Handling Pay port charges to LPK Customs Receive K2 12 electronically Pay handling charges to Jetty/port Operator Jetty/port Operator Load cargo into local 18 craft Receive printed K2 13 & supporting documents 14 Assessment of goods 15 Physical inspection if necessary 16 Approve/Release K2 C: Customs Clearance & Tech Control Shipping Agent 19 SA submit manifest within 7 days D: Ports & Terminal Handling 1 No Process Flow Document Process Time Cost 1 Importer issues purchase order to exporter. An LC advise is issued by the bank (for applicable shipments) Purchase Order 2 Working Days (LC Advise) No cost Letter of Credit 2. Exporter prepares commercial invoice (after the order is confirmed) Invoice 1 Day (Document Preparation) Overall – 2 days No cost 3. Forwarding Agent receives instruction from exporter for cargo clearance Shipping instruction Within 1 day No cost Forwarding Agent applies for Export Permit from PIA (if applicable) Invoice Within 1 day RM30 per shipment 4. A •Export Permit can be done in advance 5. Forwarding Agent prepare K2 Form and submit to Customs through SMK-DNT Net interface. Invoice 2 days RM30 per permit (FAMA) and RM35 (EDI charges) 6. PIA approves export permit (if applicable) Export permit 2 days RM35 (EDI charges) 2 4 No Process Flow Document 7. Forwarding Agent books space through Shipping Agent Loading Instruction 8. Forwarding Agent submits request of transport to transport company 9. Shipping Agent issues shipping instruction to Jetty/port Operator 10. Transport company receives request of transport from Forwarding Agent Process Time * Cost No cost A No cost Shipping instruction No cost An average for 10 ton: Rm8/km B Transport company picks up cargo from Exporter’s premise and delivers to Jetty/port Operator’s warehouse 11. The relevant Government Agency will carry out cargo inspection or endorsement of the export permit if required Export Permit 12. Customs computer system automatically processes & registers K2 and sends response back to forwarding agent with registration number - 13. Customs receives Form K2, invoice and export permit (if applicable) for Customs clearance. No cost No cost C K2 Invoice Export Permit No cost * 7-13 activities : Within 1 day 3 No Process Flow Document 14. Assessment of goods by Senior Customs Officer which includes the following processes : a) Verification of particulars declared against supporting documents; b) Instruction for physical inspection if necessary; c) Classification/Valuation. K2 Invoice Export Permit 15. Physical inspection if necessary will be carried out in Jetty/port Operator’s warehouse by Customs officer and in the presence of Forwarding Agent. K2 Invoice 16. Senior Customs Officer grants approval/release to the K2 in SMK and hardcopy. K2 hardcopy K2 SMK 17. Forwarding Agent pays port charges to LPK and handling charges to Jetty/port Operator K2 Monthly bill 18. Jetty/port operator verifies processed K2 and after tallying proceed to load cargo onto the local craft. K2 Tender Ships 45 minutes to 1 hour per container No cost Manifest 8 hours No cost 19. Shipping agent submits export manifest manually to Customs within 7 days after local craft departure. Process Time Cost 5-20 mins No cost C 30 mins No cost 2 – 5 mins No cost 1 min. Port Charges : RM 2.00/tonnes D Le ge nd (Ex por t Flow ): 1. 2. 3. 4. SA – Shipping Agent FA – Forwarding Agent LC – Letter of Credit PIA – Permit Issuing Agencies IMPORT FLOW FOR BARTER TRADE (PORT KLANG) Shipping Agent Forw arding Agents SA Submit Manifest manually to Customs/ 4 Jetty/port Operator. 14 Pay handling PI As I mporter I mporter/ Bank Jetty/port Operator Import Permit preparation including (if applicable) -COO documentatio n from FTA Countries 15 charges to 2 Approval of 1 Documents Arrange for 16 transport and Make Duty Payment Forw arding Agent 3 -Application of Import Permit 3a 13 through 6 Physical FA prepare and Submit K1 electronically SMK-DNT 7 Grant 5 Approval in SMK Customs MPC17/10/08 Jetty/port Operator inspection if applicable 10 11 12 Gate Release granted by Customs officer PI As •Manual 8 9 18 Pickup cargo and deliver cargo to importer submit processed K1 to Transport Company •Electronic Received instruction for cargo clearance A: Docum ent s Preparat ion Transporter Pay port charges to LPK Unload cargo from local craft to warehouse Load cargo from warehouse to lorry 17 Customs receive K1 electronically Customs received printed K1& supporting documents Assessment of goods Physical inspection if necessary Approve/Release K1 B: Cust om s Clearance & Tech Cont rol C: Port s & Term inal Handling D: I nland Tr anspor t at ion & Handling1 No Process Flow Document 1 Importer prepares necessary documents, including : -COO documentation from FTA Countries (if applicable) COO Process time Cost No cost 2 - Apply import permit from PIAs if applicable Import permit PIA approve Import Permit (if applicable) Import Permit Note: Total no of agencies: Live implementation: Paperless: Coming on board: 3 Pre-arrival RM 5 (DNT) PIA’s own Fees 25 19 16 4 – under development (1 peninsular, 3 Sarawak) 2 – Awaiting instruction from MOF Importer instructs forwarding agent to clear cargo (together with supporting documents such as invoice and permit) Invoice Permit A No cost FA perform Document preparation if instructed by Importer 3a 4. Forwarding agents submit K1 electronically (CUSDEC) through SMK-DNT interface. Shipping agents send manifest to Customs and Jetty/port Operator manually within 24 hours of arrival of vessel, in accordance with Section 52, Customs Act. In practice, they are allowed to submit much earlier. MPC17/10/08 K1 Manifest Response Time : 5 – 20 min K1 : RM 0.60 per set EDI charges: RM 0.88 per KB (RM 5 per K1) Forwarding charges : Pre-arrival 2 B No Process Flow 5. Jetty/port Operator unloads cargo from local craft to warehouse. 6. Forwarding agent informs OGA of the arrival of cargo & that the approval of the import permit has been approved Document Process Time K1 form OGA inspection time : 30 min No Cost K1form, PIA Permit 2 - 5 min No cost OGA physical inspection done at the relevant warehouse Cost 7. If no physical inspection, OGA will grant approval in SMK. 8. Customs computer system automatically processes & registers K1 and sends response back to forwarding agent with registration number 9. Customs receives Form K1 and supporting documents for Customs clearance. a) Basic supporting documents : invoice. b) Other supporting documents such as permit, Certificate of Origin, CJ5/CJ5A depending on transaction type. K1 form Invoice Permit COO CJ5/CJ5A 2 – 5 min No cost 10. Assessment 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) Verification of exemption/preferential rate claimed. K1 form Invoice Delivery Order Permit COO CJ5/CJ5A 5 - 20 min No cost - - No cost B 3 MPC17/10/08 No Process Flow Document Process Time Cost 11. Physical inspection if necessary will be carried out in Jetty/port Operator’s warehouse by Customs officer and in the presence of Forwarding Agent. K1 form Invoice ½ hour No cost 12. Senior Customs Officer grants approval to the K1 in SMK and hardcopy for duty payment. In case the cargo does not subject to duty/tax, customs release will be granted. K1 form K1 SMK 2 – 5 min No cost 13. 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); or c) Manual (through cheque or bank draft) EFT Message : PAYORD, CREMUL, CREADV Manual: bank draft or cheque a) EFT : 2060 min (different from Bank to Bank) b) Duty Net : Real time Basis c) Manual : 30 min EFT charges for EFT : RM 8.00 per transaction 14. Forwarding pay port charges to Klang Port Authority 15. Forwarding pay handling charges to Jetty/port Operator 16. Forwarding Agent contacts transport company and arranges for transport. Upon confirmation, processed K1 will be passed to the transport company. Lorry will be sent to pick up the cargo. B Actual charge: Rm15 per transaction RM 2.00/ton C 4 MPC17/10/08 No Process Flow Document 17. Jetty/port operator verifies processed K1 submitted by lorry driver and after tallying proceed to load cargo onto the lorry. Processed K1 18. Process Time Cost C After loading, lorry driver will proceed with Customs Gate Release by submitting processed K1 to Customs Officer at the Exit Gate and delivers cargo to importer. D 5 MPC17/10/08 Le ge nd (I m por t Flow ): SA – Shipping Agent 1. FA – Forwarding Agent 2. PO – Port Operator 3. PIA – Permit Issuing Agencies 4. COO – Certificate of Origin 5. LPK – Lembaga Pelabuhan Klang (Klang Port Authority) 6 MPC17/10/08 IN TRANSIT FLOW FOR BARTER TRADE (PORT KLANG) Haulier/ Transport Company I n Transit Applicant 1 Issue shipping instruction to Jetty/port. Operator and inform FA and SA on in transit 4 Deliver container/cargo to Jetty/port. Driver reports arrival of container/cargo to Customs. Forw arding Agent Pays port charges to LPK 8 Customs Pays handling charges to Jetty/port. Operator Forw arding Agent 2 Declare and obtain customs clearance at sending ports. Deliver copies of K8 to Haulier/ Transport Company 3 In case of container, Customs Officer at Entry 5 Gate verifies seals intact In case of bonded trucks, Customs Officer breaks seals and examine contents of cargo 6 Shipping Agent Submit Manifest (K6) to Customs manually. A: Docum ent s Preparat ion Jetty/ port Operator 9 In case of container, break-bulk Loading of cargo into local craft Customs Officer endorsed on copies of K8 7 Copies of K8 submitted to Assessment Officer for approval /release B: Cust om s Clearanace C: Port s & Term inal Handling 1 MPC17/10/08 No Process Flow Document 1 Applicant for in transit issues shipping instruction to Jetty/port. Operator and informs Forwarding Agent and Shipping Agent on cargo in transit . Shipping instruction 2 Forwarding Agent declares K8 to Customs at sending port and obtains Customs Clearance. K8 Invoice Delivery Order (DO) EDI charge: RM30 per shipment Copies of K8 will be delivered to Hauliers (in case of containerised cargo) or transport company (in case of bonded trucks) for submission to Customs at receiving Jetty/port. Process time Cost *Process 1- 8 : within 3-4 days A 3 Shipping agent submits in transit manifest (K6) manually to Customs. shipping agent exchange the BL for DO K6 Through BL - 4 Haulier/Transport company deliver container/cargo to Jetty/port. K8 Transport cost: 20’: RM575 40’: RM770 Upon arrival at Jetty/port, driver reports arrival of cargo and submits copies of K8 to Customs Officer at Entry Gate B 5. In case of container, Customs Officer will verify the shipper seal to ensure it remains intact. K8 20 mins - In case of bonded trucks, Customs seal will be broken and content of cargo examined by Customs Officer. 2 MPC17/10/08 No Process Flow Document Process Time 6. Customs Officer confirmed receipt of container/cargo by endorsing on the copies of K8 K8 5 mins - 7. Copies of K8 submitted to Assessment Officer for approval /release. K8 Invoice 5 – 30 minutes. - 8. Forwarding pays port charges to LPK and handling charges to Jetty/port Operator. K8 5 mins 9. In case of containerised cargo, Jetty/port Operator will break-bulk. - 5 – 30 minutes. Cost B Port charges: RM 2.00 per tonnes - C Jetty/port Operator loads cargo on the local craft * Process 1- 8 : within 3-4 days 3 MPC17/10/08 Legend (In Transit Flow): • K6 – Customs Transshipment Manifest. • B/L – Bill of Lading. • DG Dept., PKA – Dangerous Goods Department, Port Klang Authority. • FZA – Free Zone Authority (Free Zone Department, Port Klang Authority). • MSDS – Material Safety Data Sheet. • NVOCC – Non-Vessel Operating Common Carrier. 4 MPC17/10/08