MTC Industry Assistance Programme

Guidelines

Guidelines for MTC Import Assistance Programme (IAP) 2021

 

Our Objectives

The Import Assistance Programme (IAP) established by the Malaysian Timber Council (MTC) is an off-shore sourcing programme for timber raw materials/planting materials. This programme aims to encourage the development of timber industry in Peninsular Malaysia that are involved in manufacturing downstream value-added products for the domestic and export markets. The programme facilitates local timber manufacturers to import raw materials/planting materials by defraying part of the freight and handling charges.

Guidelines

MTC’s IAP consists four (4) categories:

i.             DIRECT SOURCING PROGRAMME (DSP)

A two-tier disbursement to defray freight and handling charges incurred for the importation of timber raw materials. 

ii.           INDUSTRIAL TESTING PROGRAMME (ITP) 

To encourage SMEs to conduct feasibility studies on the suitability of new timber species for their production.

Full reimbursement for ocean freight charges up to a maximum of two (2) forty-footer container per company from the port of origin to any port in Peninsular Malaysia.

iii.            MISSION PARTICIPATION INCENTIVE (MPI)

A cost-sharing programme to facilitate trial shipment from new timber raw materials suppliers visited during MTC’s Resource and Business Mission. 

Full reimbursement for ocean freight charges up to a maximum of two (2) forty-footer containers per company from the port of origin to any port in Peninsular Malaysia.

iv.           PLANTING MATERIALS (i.e. Seedlings/Plantlets) 

Reimbursement to defray air freight and handling charges incurred for the importation of planting materials (i.e. seedlings/plantlets).

The programme supports the timber industry's initiative to import panting materials (i.e. seedling/plantlets) for establishment of forest plantations of fast-growing tree species for future sustainable timber supply.

 

1.    COMPANY ELIGIBILITY

  • The company must be incorporated in Malaysia and based in Peninsular Malaysia with own manufacturing facilities.
  • Must be a Malaysian-owned company (with at least 51% of shareholding)
  • Eligible for both small and medium enterprises (SMEs) and non-SME company.
  • Companies with 50% or more of majority common shareholders may participate in the programme.
  • Companies within the same group should have different core businesses.
  • Local manufacturers that purchase imported raw materials from domestic traders.
  • Must be a valid member of any one of the following associations:

-       Malaysian Wood Industries Association (MWIA);

-       The Timber Exporters' Association of Malaysia (TEAM);

-       The Malaysian Panel-Products Manufacturers' Association (MPMA);

-       Malaysian Wood Moulding & Joinery Council (MWMJC);

-       Malaysian Furniture Council (MFC);

-       Association of Malaysian Bumiputra Timber & Furniture Entrepreneurs (PEKA).

 

2.    TIMBER RAW MATERIALS

  • Timber raw materials must be in the form of round logs, sawntimber, veneers, mouldings, LVL bed slats, tubular core particleboard, semi-processed products, panels in which is not produced in Malaysia and timber components deemed suitable by MTC.
  • The timber raw materials must be from legal sources.
  • Import of timber raw materials from Sabah and Sarawak is permitted under the programme.  Timber materials that are eligible to be imported from Sabah and Sarawak are logs, sawntimber, veneer, panels, mouldings, semi-processed products and timber components deemed suitable by MTC.
  • Final port of destination should be a port located in Peninsular Malaysia.
  • Alternative raw materials from local sources (i.e. oil palm trunk, coconut, kenaf,etc.) are also eligible under this programme.

 

3.    INCENTIVES  

i.    Direct Sourcing Programme

Eligibility per company:

No.

Item

Per company

1.

Maximum Volume/Quantity (m3)

1,500 m3

 

Reimbursement Rate for SMEs

  1. RM70/m3 – 1st 1,000 m3
  2. RM40/m3 – 2nd 500 m3

Reimbursement Rate for non-SMEs

  1. RM50/m3 – 1st 1,000 m3
  2. RM40/m3 – 2nd 500 m3

2.

Maximum Volume/Quantity (m3)

  • Eligible for manufacturer of plywood and downstream products deemed suitable by MTC.
  • The timber materials eligible under this item (logs, sawntimber, veneer and finger-jointed laminated board)

2,500 m3

 

Reimbursement Rate for both SMEs and non-SMEs

  1. RM50/m3 – 1st 1,500 m3
  2. RM40/m3 – 2nd 1,000 m3

3.

Purchase Assistance for Alternative Raw Materials from domestic sources

3,000 m3

Reimbursement Rate for both SMEs and non-SMEs

Flat rate of RM30/m3

4.

Timber Materials Imported from Thailand

  1. RM50/m3 – 1st 1,000 m3
  2. RM40/m3 – 2nd 500 m3

 

 

ii.    Mission Participation Incentive (MPI) and Industrial Testing Programme (ITP)

  • Full reimbursement for ocean freight charges up to a maximum of two (2) forty-footer container per company from the port of origin inbound to any port in Peninsular Malaysia.

 

4.    REGISTRATION

  • Online application for Direct Sourcing Programme (DSP) is open to industry members starting 1 December for the following year programme.
  • Documents to be submitted (certified true copy):
  1. Latest Form of Section 78 and Section 58 as per Companies Act 2016 or Form 24 and 49 (certified as true copies) as per the Companies Act 1965
  2. Latest annual return; and
  3. Latest audited accounts. 
  • Application for Mission Participation Incentive (MPI) and Industrial Testing Programme (ITP), industry members can download the application Form for MPI or ITP from the IAP Portal. The completed form to be submitted to MTC either by email or fax.

 

5.    NON-COMPLIANCE (Penalty)

  • Company registered with IAP should declare and confirm that the timber raw materials are imported from legal sources and the products are used for the company’s own production and not for re-export and/or traded.
  • In the event of non-compliance, the company must undertake to refund in full the disbursement amount back to MTC.

 

6.    REIMBURSEMENT 

i.    All applications for the IAP reimbursement must be submitted online via IAP Portal (iap.mtc.com.mywithin 30 days from the import date as per custom receipt/declaration. Certified true copies of the following documents to be submitted: 

i.             Purchase Order/Contract 
ii.            Bill of Lading
iii.           Legality Certificate(s) (if any)  
iv.           Custom Official Receipt (if any)
v.            Custom Declaration Form
vi.           Special Calculation of Import (if any)
vii.          Commercial/Supplier’s Invoice(s)
viii.         Packing List 
ix.           Forwarding Invoice(s)
x.            Ocean Freight Invoice(s)
xi.           Terminal Operators’ Invoice(s) 
xii.           Land Transportation Invoice(s)
xiii.         Self Declaration Letter (if any) 

ii.  Reimbursement is based on a first-come, first-served basis until the direct sourcing fund is fully utilised.

iii. Timber raw material imported is subject to periodical audit by MTC staff either at the port or at the factory premises from time to time. 

http://iap.mtc.com.my/