MTC Industry Assistance Programme

IAP Guidelines

Guidelines for MTC Import Assistance Programme (IAP) 2023


 

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. 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 or with common shareholders and different core businesses are eligible to apply for up to a maximum of two (2) companies. This term does not apply to the Local Traders and companies allocated with maximum volume of 2,500 m3.
  • Local manufacturers that purchase imported raw materials from domestic traders.
  • Extension of IAP to Local Traders. Categories of eligible local trader are as follows:

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.

  • 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 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 trunk, kenaf, bamboo etc.) are also eligible under this programme.

 

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

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

Reimbursement Rate for non-SMEs

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

2.

Maximum Volume/Quantity (m3)

  • Eligible for manufacturer of downstream products (i.e. furniture, mouldings, doors,  plywood) deemed suitable by MTC that fully utilised their previous year IAP quota of 1,500 m3.
  • 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 tier (1,500 m3)
  2. RM40/m3 – 2nd tier (1,000 m3)

3.

Reimbursement Rate for Local Traders

 

1,500 m3

 

Category 1

  1. RM30/m3 – 1st tier (500 m3)
  2. RM40/m3 – 2nd tier (1,000 m3)

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:

  1. Each company or participant is only eligible for only ONE maximum volume/quantity (i.e. 1,500 m3 or 2,500m3 or 3,000m3)
  2. For both maximum volume of 1,500m3 and 2,500m3, the reimbursement rate for timber materials imported from Thailand is RM30/m3.

b) Eligibility per Group of Companies:

  • up to 3,000 m3 per year 

 

No.

Maximum No. of Company

Maximum Volume/Quantity (m3)

i.

2 companies

 

Each subsidiary is eligible for the following:

  1. SME Company: 1,500 m3 at RM70/m3 for 1st 1,000 m3 and   RM40/m3 for 2nd 500 m3,up to reimbursement of RM90,000 or whichever lower.
  2. Non-SME Company: 1,500 m3 at RM50/ m3 for 1st 1,000 m3 and   RM40/m3 for 2nd 500 m3, upto reimbursement of RM70,000 or whichever lower.

 

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.

iii.   Planting Materials (i.e. Seedlings/Plantlets)

  • Reimbursement for air freight and handling charges incurred for the importation of planting materials (i.e. seedlings/plantlets). 
  • Eligibility per company/group of companies:

 

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

  • Online application for Direct Sourcing Programme (DSP) is open to industry members starting 1 December for the following year programme.
  • Documents to be uploaded (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)

  • Manufacturers 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.