1.1 "the Customs" means the Royal Customs and Excise Department of Malaysia.
1.2 "Free Zone" means any part of Malaysia declared to be a free commercial zone or a free industrial zone under the Free Zones Act 1990.
2. The Controller hereby gives permission, subject to the conditions in paragraph 6, to any person in Malaysia to export goods of any class or description to any territory outside Malaysia, provided the exporter complies with the following -
2.1 A Form KPW X is completed for each export, the value of which as declared in the relevant export declaration form of the Customs/Free Zone exceeds RM100,000 f.o.b. per shipment and the form is delivered to the proper officers of the Customs or the Free Zone at the time of export;
2.2 The export proceeds received in foreign currency is sold for ringgit to authorised dealers or deposited in foreign currency accounts with the Designated Banks, subject to the limits imposed in ECM 7;
2.3 Payments for the export shall be received in Malaysia by the exporter in full and in the prescribed manner when contractually due, but in any case not later than 6 months from the date of export, other than -
2.3.1 Partial payment for the export may be made -
2.3.1.1 Only when the exporter does not own the goods but is charging the non-resident consignee and owner the fees due for services rendered on the goods; or
2.3.1.2 When the export item is timber, and partial payment is the result of a deduction for commission payable to the buyerﾕs agent and such commission amounts to not more than 5% of the f.o.b. value of the timber; and
2.3.1.3 In the prescribed manner and when contractually due, which in any case is not later than 6 months from the date of export and the exporter completes and submits a Form KPW XA to the Controller; or
2.3.2 Non-payment for the export is permitted for the following cases -
2.3.2.1 For further processing and re-import;
2.3.2.2 For testing and/or repairing and re-import;
2.3.2.3 For exchange and re-import;
2.3.2.4 As business samples;
2.3.2.5 For exhibition in a foreign country and re-import;
2.3.2.6 For re-export after exhibition in Malaysia;
2.3.2.7 For re-export of equipment belonging to a non-resident upon expiry of the lease or rental period; or
2.3.2.8 As personal effects or gifts,
and the exporter completes and submits a Form KPW XA to the Controller; and
2.4 The exporter submits to the Controller a quarterly report listing all exports exceeding RM100,000 f.o.b. per shipment for which payment would be received whether in full or in part, within 21 days after the end of the quarter being reported, in the format as per the Appendix and the quarterly report is certified in the following manner -
2.4.1 By an independent professional auditor or a duly authorised bank officer for total export proceeds exceeding the equivalent of RM2 million received during the quarter; or
2.4.2 By the exporter or any person authorised by him for total export proceeds up to the equivalent of RM2 million received during the quarter.
3 The Controller also gives permission for overland and sea border trade carried out by any resident of Malaysia with a resident of Indonesia or any country with which the Government of Malaysia signs a Border Trade Agreement, and exempts such trade from all requirements stipulated in this ECM Notice, provided the resident of Malaysia complies with the terms and conditions set out in the Agreement on Border Trade signed between the Government of Malaysia and the Government of Republic of Indonesia or with any other country.
4. The prior permission of the Controller is required for the export of goods which does not comply with the provisions in paragraph 2 and 3.
5. The Controller has prescribed through the Exchange Control(Prescription of Territory and Manner of Payment) Order 1986, the manner of payment for export to be as follows -
5.1 In any foreign currency other than Restricted Currencies; or
5.2 In Ringgit from an External Account.
6. An exporter is required to comply with all the following -
6.1 Stipulate terms and conditions of payment which are consistent with the prescribed manner of payment and receive payment within the stipulated period from the date of export in undertaking any sales contract for the export of goods to any territory outside Malaysia, unless permitted otherwise by the Controller.
6.2 Complete one Form KPW X for each shipment exceeding RM100,000 f.o.b., provided for a shipment consisting of a convoy of carriers, a Form KPW X is completed for each of the carriers, notwithstanding that the value of export on each carrier is less than RM100,000.
6.3 Complete and submit Form KPW XA to the Controller when the total payment received or is to be received differs from the original value declared in the Form KPW X by more than 10%, provided the cause for the difference is due to one or more of the reasons stated in Section C of Form KPW XA.
6.4 Complete and submit Form KPW XA (in duplicate) to the Controller for approval when the export of goods does not comply with the provisions in paragraphs 2 and 3.
6.5 Fill in the ISO codes for countries and currencies wherever applicable in the Form KPW X and Form KPW XA.
7. An authorised dealer is required to comply with all the following -
7.1 Ensure a Form R is completed for each receipt of export proceeds exceeding RM50,000 or its equivalent in foreign currency.
7.2 Keep sufficient stock of Forms KPW X and Form KPW XA for supply to exporters or their forwarding agents.