MTC FINANCIAL INCENTIVE FOR EXPORT ASSISTANCE PROGRAMME (EAP)  

GUIDELINES

The issue of container and vessel capacity shortage due to the COVID-19 pandemic has hit the global trade and has become a serious problem for importers and exporters as well as the logistics industry in Malaysia. The container and space shortage on board shipping lines have increased container freight rates for both export and import shipments by between 300% to 500%.

The Export Assistance Programme (EAP) established by the Malaysian Timber Council (MTC) is to provide assistance to Malaysian timber exporters, particularly SMEs to defray part of only the ocean freight charges.

1. Company Eligibility

• The company must be incorporated in Malaysia.
• The company must be based in Peninsular Malaysia and must be a Malaysian-owned company (with at least 51% of the shareholding).
• Eligible for small and medium enterprises (SMEs) only.
• Companies with common shareholder(s) are only eligible to apply for two (2) companies only.
• Company must be in operation for at least two (2) years prior to application. Companies with less than 2 years of operations may apply, but approval is subject to MTC’s sole discretion.
• A member of any one (1) of the six (6) timber associations:

1. Malaysian Wood Industries Association (MWIA);
2. The Timber Exporters' Association of Malaysia (TEAM);
3. The Malaysian Panel-Products Manufacturers' Association (MPMA);
4. Malaysian Wood Moulding & Joinery Council (MWMJC);
5. Malaysian Furniture Council (MFC); and
6. Association of Malaysian Bumiputra Timber & Furniture Entrepreneurs (PEKA).

2. Eligible Export Product

• Timber products include sawntimber, veneer, panel products, mouldings, builders’ joinery and carpentry (BJC), wooden pallets, pellets and furniture which are produced in Malaysia and deemed suitable by MTC.
• The products must be manufactured using timber raw materials from legal sources.
• Export of timber products from Peninsular Malaysia to Sabah, Sarawak and ASEAN countries is not eligible under the programme. 
• Port of origin should be a port located in Peninsular Malaysia.

3.    Incentives

Eligibility per company:

4.    Registration / Application (Online)

• Online application for Export Assistance Programme (EAP) is open to industry members via IAP Portal (iap.mtc.com.my) for the current year programme. Supporting documents to be submitted online include:

                    i. Latest Form of Section 78 and Section 58 as per Companies Act 2016 or Form 24 and 49 as per the                                           Companies Act 1965. (certified true copy stamped on front page only)

                   ii. Latest annual return. (certified true copy stamped on front page only)

                  iii. Latest audited accounts. (certified true copy stamped on front page only)

• MTC will issue an Approval Letter via email to successful Applicants.
• Applications must be approved by MTC prior to submission of documents for reimbursement.

5.    Reimbursement 

• Applications for Export Assistance Programme (EAP)  reimbursement must be submitted in hard copies directly to MTC within thirty (30) days from the export date as per Custom Release Form K2. Late submission will not be entertained.
• Reimbursement Documents to be submitted by hard copies to MTC:

                    i. Company Cover Letter

                   ii. EAP Reimbursement Checklist

                  iii. MTC Approval Email

                  iv. Bill of Lading (certified true copy stamped on front page)

                   v. Ocean Freight Invoice(s) (certified true copy stamped on front page)

                  vi. Complete Custom Release Form K2 (certified true copy stamped on front page)

                  iv. Cargo Insurance (if any) (certified true copy stamped on front page)

• The assistance provided is on a first-come, first-served basis, until the budget allocation is fully utilised in the stipulated period.
• Approval for reimbursement application is subject to MTC’s sole discretion.

 6.    Non-Compliance (Penalty)

• In the event of non-compliance to the guidelines, the company must undertake to refund in full the disbursement amount to MTC.