The demand for sugar and sugar products in Malaysia have increased in recent years. However, sugar is not produced domestically in Malaysia at the same scale to match its current demand. Only a small percentage of the sugar used in Malaysia is produced domestically from sugar cane plantations. As such, the import of sugar and sugar products has become a booming industry in the country. However, this increased traffic in the sector has caused concerns for the government.
Laws regarding sugar imports in Malaysia
While Malaysia’s sugar consumption has seen an upward trend in the past few years, this has not sat well with the government. This is due to the public health crisis Malaysia is currently facing due to obesity. Which is caused by the overconsumption of sugar and sugary products. Moreover, the country has also seen a rise in type 2 diabetes. Which has caused a strain on the public healthcare system. In order to curb this issue, the government of Malaysia began to implement laws regarding the import of sugar to the country.
This law is colloquially dubbed “the sugar tax”. It declares if a business is to import sugar and sugar products to Malaysia, they will need a license certifying them to do so. This license is known as the “Import License For Controlled Commercial Products”. This license also outlines and imposes limits on the types and amount of sugar products to be imported. Moreover, products with a certain percentage of sugar are banned in Malaysia altogether.
To apply for this license, one will have to file an application to the KPDNKK of Malaysia (Ministry of Domestic Trade and Consumer Affairs). This process will be elaborated later on in the article.
If your business needs sugar importation in Malaysia, you are required to file for an import permit first. This permit can be applied for online using the ePermit system of the KPDNHEP of Malaysia.
Step 1: Online registration
If you are first time applicant, you will need to register online first.
Step 2: Making a new application
When you receive the approval for your registration, you can file for a new permit here. You will need to select the sugar import/export permit (AP) as your choice.
Step 3: Preparing the documents
Next, you will need to prepare the following documents in order to submit the application:
For limited liability companies: You will need to upload a blank document indicating this
IF in the case your company has changed its name: Form 13
Step 4: Individual procedures for the application split by product categories
Now, you will have to follow the individual procedure detailed for what category of sugar products you want to import.
Category 1- “Sugar Other Imports”
This requires the selection of the sections HS 1701 and HS 1702
You will also need the following supporting documents for the applications:
Category 2- Raw Sugar Import
This requires the selection of the sections HS 1701
You will also need the following supporting documents for the applications:
Step 5: Submitting the documents
Once you have uploaded all the documents listed above, you may submit the application. You will then be given notice within 14 working days if your application is successful. If it is, you will be given a certificate of license to show to the customs officers.
It should be noted that your company should be officially registered with the SSM of Malaysia first. Otherwise you will not be able to submit the application. Another point to note is the language being used. As Malaysia’s official language is Bahasa Malaysia, some aspects of the application may not be available in English. As such, it is useful to have knowledge of the local language. Especially in the case of communicating with the customs officers.
Related Article:
Main exports Imports products in Malaysia
Requirement of Export Import License in Malaysia for business
