MTC Industry Assistance Programme

IAP Guidelines

Guidelines for MTC Import Assistance Programme (IAP) 2024


 

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 is involved in manufacturing downstream value-added products for the domestic and export markets. The programme facilitates local timber manufacturers to import raw materials or planting materials by defraying part of the freight and handling charges. MTC’s IAP consists of 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 industry to conduct feasibility studies on the suitability of new timber species for their production.

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. 

iv.  PLANTING MATERIALS (Seedlings/Plantlets) 

The programme supports the timber industry’s initiative to import planting materials for the establishment of forest plantations of fast-growing tree species for future source of sustainable timber supply.

1.    COMPANY ELIGIBILITY

  • The company shall be incorporated in Malaysia and based in Peninsular Malaysia with own manufacturing facilities.
  • The company shall be a Malaysian-owned company (with at least 51% of shareholding).
  • Eligible for both small and medium enterprises (SMEs) and non-SME companies with an annual revenue below RM100 million and are not public listed.
  • Companies with 50% or more of majority common shareholders may participate in the programme.
  • Companies within the same group or with common shareholders but different core businesses are eligible to apply for up to a maximum of two (2) companies and/or reimbursement up to RM180,000. This term does not apply to the local traders.
  • Local manufacturers that purchase imported raw materials from domestic traders may apply.
  • Categories of eligible local traders 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.

  • The company shall be a member of any one (1) of the following six (6) timber 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);

-      Persatuan Pengusaha Kayu-kayan & Perabot Bumiputra Malaysia (PEKA) [Association of Malaysian Bumiputra Timber & Furniture Entrepreneurs]

 

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, veneers, 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. Alternative raw materials sourced from its own plantation and related subsidiaries, or group of companies are not eligible under this programme.

 

3.    INCENTIVES  

i.    Direct Sourcing Programme

 

No.

Category

Reimbursement Rate

1.

Maximum Volume/Quantity (1,500 m3)

a)

SMEs

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

b)

Non-SMEs

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

c)

Timber raw materials imported as components or with minimal value-added processes (i.e. LVL/bedslat, furniture components)

  1. Flat rate of RM30/m3

d)

Timber materials imported from Thailand (Reimbursement is only eligible for SME companies)

  1. Flat rate of RM30/m3

e)

Local Traders

Category I:

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

 

Category II:

  1. Flat rate of RM40/m3

2.

Maximum Volume/Quantity (3,000 m3)

a)

Purchase Assistance for Alternative Raw Materials (i.e.  Oil Palm Trunk, Coconut Trunk, Kenaf, Bamboo, etc.) from Domestic Sources

  1. Flat rate of RM30/m3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

Each company or participant is only eligible for only ONE maximum volume/quantity (i.e. 1,500 m3 or 3,000 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 containers 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). 
    • The company must have the Letter of Approval to plant the seedlings/plantlets from local authorities and an existing land area which is:

-        Privately owned or have leasehold agreement of at least 20 years or for at least one (1) planting cycle.

-        A minimum size of:

  • 4 – 40 hectares (small scale)
  • 41 – 2,499 hectares (medium scale)
  • The company has the approved Forest Management Plan (FMP) from the state Forest Department and Environmental Impact Assessment (EIA) Report should they lease the land from the state government.
  • For plantations that are established on private land, the company must ensure that the land is approved for forest plantation purposes.
  • Planting Materials:

-        The planting materials (i.e. seedlings/plantlets) must be from a legal source.

-        Appropriate choice of timber species that are deemed suitable to local climatic and soil conditions.

  • The company must apply for an Import Permit from the Department of Agriculture (DoA) 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

 

 

  • Certified true copies of the following documents to be submitted:
  1. Latest 3 years Audited Accounts
  2. Latest 3 months Bank Statements
  3. Land Title (Ownership) or Leasing Agreement
  4. Area Map (Topography/Scaled Plan)
  5. Approved Forest Management Plan and Environmental Impact Assessment (EIA) Report (where applicable)
  6. Approval to plant the Seedlings/Plantlets from relevant Local Authorities

 

4.    REGISTRATION/APPLICATION

  • Register for an account at MTC IAP Portal: iap.mtc.com.my. Once the account registration is approved, the applicant will receive an email notification and instructions to log into the Portal.
  • Applying company shall complete their company profile in the online application portal.
  • Applying company with existing account in the portal shall log in and update their company profile. The company profile can be updated at any time and should be kept up to date for MTC’s evaluation.
  • The online application for the Direct Sourcing Programme (DSP) is open to industry members starting 1 December for the following year programme.
  • Certified true copies of documents1 required include:
  1. Form 24 as per the Companies Act 1965 OR Section 78 as per the Companies Act 2016
  2. Form 49 as per the Companies Act 1965 OR Section 58 as per the Companies Act 2016
  3. Latest Section 68 (Annual Return) as per Companies Act 2016
  4. Latest audited accounts 

Note: 1 To certify on the first page only. Hardcopies are not required.

  • For the application for Mission Participation Incentive (MPI), Industrial Testing Programme (ITP) and Planting Materials, industry members can download the Application Form from the IAP Portal. The completed form is to be submitted to MTC by email.

 

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 

  • All applications for the IAP reimbursement must be submitted online via MTC IAP Portal (iap.mtc.com.mywithin 30 days from the import date as per custom receipt/declaration. Certified true copies of the following documents1 to be submitted online: 

i)            Purchase Order/Contract

ii)          Bill of Lading

iii)         Legality Certificate(s) (if any)  

iv)        Customs Official Receipt (if any)

v)          Customs Declaration Form (K1)

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)

Note: 1 To certify on the first page only. Hardcopies are not required.

 

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

 

For further enquiries and information, please contact:

1. Ms. Ong Lay Lee, ext. 602, email: ong@mtc.com.my

2. Ms. Rachel Joanes Ling, ext. 604, email: ling@mtc.com.my

3. Ms Juli Pilus, ext. 609, email: juli@mtc.com.my

 

Industry Development & Transformation Division (IDTD)