Guidelines for MTC Import Assistance Programme (IAP) 2023
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. 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
Category I: Trader who imports and sell the timber materials “as is” to manufacturers for value-added downstream products.
Category II: Trader outsources the value-added downstream process while sales and marketing is handled by its company.
- 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
3. INCENTIVES
i. Direct Sourcing Programme
a) Eligibility per company:
No. |
Item |
Per company |
1. |
Maximum Volume/Quantity (m3) |
1,500 m3
|
Reimbursement Rate for SMEs |
|
|
Reimbursement Rate for non-SMEs |
|
|
2. |
Maximum Volume/Quantity (m3)
|
2,500 m3
|
Reimbursement Rate for both SMEs and non-SMEs |
|
|
3. |
Reimbursement Rate for Local Traders
|
1,500 m3
|
Category 1 |
|
|
Category 2 |
Flat rate of RM40/m3 |
|
4. |
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 |
|
5. |
Timber Materials Imported from Thailand |
Flat rate of RM30/m3 |
Note:
b) Eligibility per Group of Companies:
No. |
Maximum No. of Company |
Maximum Volume/Quantity (m3) |
i. |
2 companies
|
Each subsidiary is eligible for the following:
|
ii. Mission Participation Incentive (MPI) and Industrial Testing Programme (ITP)
iii. Planting Materials (i.e. Seedlings/Plantlets)
Description |
Eligibility |
Maximum Incentive Amount |
RM70,000 |
Maximum Reimbursement per Shipment (i.e. approximately 50,000 – 100,000 seedlings/plantlets per shipment) |
RM10,000
|
4. REGISTRATION
5. NON-COMPLIANCE (Penalty)
6. REIMBURSEMENT
i. All applications for the IAP reimbursement must be submitted online via IAP Portal (iap.mtc.com.my) within 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.