methods for importation & inspection of metal scrap …
TRANSCRIPT
METHODS FOR IMPORTATION & INSPECTION OF METAL SCRAP
INTO MALAYSIA
Presented by:
Khaizuran Bin Mohd Salleh
Product Certification and Inspection Department
23 August 2021
2
• INTRODUCTION & OBJECTIVES
• APPLICABLE TARIFF CODES
• PRE-CONDITIONS/ PRE-QUALIFIERS FOR COA APPLICATION
• DOCUMENTS REQUIRED FOR COA APPLICATION
• IMPORTATION METHODS
• INSPECTION CRITERIA
• SAMPLING PLAN
• SIRIM SCHEDULE OF FEES
• CLIENT CHARTER
CONTENT
2
The importation of all metal scraps to Malaysia is
subjected to the issuance of a Certificate of
Approval (COA) by SIRIM (to be gazetted under
Customs (Prohibition of Imports (Amendment)
Order 2021)
3
Introduction
Objectives:• To provide guidance in relation to the importation
and inspection of metal scrap into Malaysia.
• To lay down the requirements for the issuance of
the COA
• To inform on the criteria requirements of imported
metal scrap
3
APPLICABLE TARIFF CODES
HS Code 7204: Ferrous waste and scrap; remelting scrap ingots of iron or steel
HS Code 7404: Copper waste and scrap
HS Code 7602: Aluminum waste or scrap
4
PRE-CONDITIONS/ PRE-QUALIFIERSFOR COA APPLICATION
1. MANUFACTURERS
• Hold Manufacturing License (ML) ;
Or
• Confirmation Letter for a Company Exempted from Manufacturing
License (ICA 10)
2. TRADING ARM COMPANIES
• Possess Approved invoices from ML or ICA
10 manufacturers
and
• Memorandum of Agreement (MoA) with
ML or ICA 10 manufacturers
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The manufacturer shall hold:
• A license under SIRIM Certification/Eco-Label scheme; or
• annual inspection or verification services at manufacturingpremises
Among elements to be covered:
• Verification of quota; or
• Waste management- Manufacturers must have wastemanagement facilities or standard recycling processes
for the recoverable materials including plastic.
PRE-CONDITIONS/ PRE-QUALIFIERS FOR COA APPLICATION
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1. To provide SIRIM with valid Bank Guarantee.
2. Amount: Projected based on the highest shipment cost
(including incidental cost) to return the shipment to the
country of origin.
BANK GUARANTEE
PRE-CONDITIONS/ PRE-QUALIFIERS
FOR COA APPLICATION
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PRE-CONDITIONS/ PRE-QUALIFIERS FOR COA APPLICATION
The manufacturer’s premises:
• In operation
• Comply with the Environmental Quality Act 1974 and its related Regulations.
The storage space/capacity:• Adequate
• Handled appropriately.
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NO COA APPLICATION DOCUMENTS MANUFACTURERSTRADING ARM
COMPANIES
1 Shipping documents (Invoice, Packing List & Import
Documents)
2Valid Pre-shipment inspection report (For Method Type
1A, 1B and 1C)
3Inspection reports issued by SIRIM Approved MRF (For
Method Type 2 only)
4Proof of SIRIM Approved MRF Certificate (For Method
Type 2 only)
5 Proof of manufacturing license (ML) or Confirmation
Letter for a Company Exempted from Manufacturing
License (ICA 10) issued by MIDA.
6Verified invoice from ML holders or ICA 10 manufacturers
and Memorandum of Agreement (MoA) with ML holders
or ICA 10 manufacturers
7 Bank Guarantee
8 SIRIM Certificate
9 Shipping Insurance Policy
10 Tariff Code Classification Letter issued by RMCD
DOCUMENTS
REQUIRED FORCOA
APPLICATION
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Requirements/
Processes
Methods
WITHOUT
SIRIM approved MRF
WITH
SIRIM
approved
MRF
Type
1A
Type
1B
Type
1C
Type
2
Mode of Transport Land &
Sea
Land &
Sea
Sea Only Land & Sea
Pre-Shipment
Inspection
Post Shipment
COA
Inspection at Factory
Storage Yard
(By SIRIM) (By FIB with
MoA)(By FIB)
(By SIRIM)
(By SIRIM)
Importer to choose
one(1) of the Importation
Methods for each
shipment:
MRF = Materials Recovery Facility
IMPORTATION
METHODS
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NO INSPECTIONCRITERIA
REQUIREMENT
(% BY WEIGHT)
HS Code 7204(Ferrous waste and
scrap; remelting scrap ingots of iron or steel)
HS Code 7404 (Copper waste
and scrap)
HS Code 7602 (Aluminium
waste or scrap)
1.Solid Ferrous Minimum: 94.75% Maximum: 5.0 % Maximum: 5.0 %
2. Solid Non- Ferrous Maximum: 5.0 % Minimum: 94.75%
Minimum: 94.75%
3.Other recoverable material including plastic
Maximum: 0.25% Maximum: 0.25%
Maximum: 0.25%
4.
Scheduled waste
including
electrical and
electronic
0% 0% 0%
Total 100% 100% 100%
Note:Crushed or shredded form of metal scrap of sizes less than 5 mm is not allowed for importation.
This criteria was developed by a committee (MITI, MIDA, DOE, RMCD & SIRIM) with reference to the Environmental Quality Act 1974, BASEL Convention, EQC and country best practices.
INSPECTION
CRITERIA
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Example:
180 containers per shipment:
Number of sampled containers: 32 containers
SAMPLING PLAN (AQL): 6.5.
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MS ISO 2859-1;
GENERAL INSPECTION LEVEL II;ACCEPTANCE QUALITY LIMIT (AQL): 6.5
SIRIM
SCHEDULE OF FEES
Pre-shipment inspection fee at country of origin
1.
No Description
SIRIM FEES (RM)
(Method Type 1A)FIB FEES
(Method Type
1B&1C)Fee
(RM)
Example:
(Qty:
4,500 MT)
1. First 3000 MT 6,000 / Shipment6,000
Importer to
liaise directly
with the FIB.
SIRIM has no
control over
FIB’s fees.
2.Subsequent Weight
(>3000 MT)1.80 / Ton
1,500 x 1.80 =
2,700
3.Inspection Report
500.00 / Shipment500
4. Incidental
As charged, where applicable for
accommodation, living allowances
and transportation/mileage
*Total: RM9,200
* Total fee per shipment (not including incidental cost)13
Note:
COA Fee is based on per shipment, regardless of weight or
number of containers per shipment
No DescriptionFee
(RM)
1.
New application fee &
Issuance of Certificate of
Approval (COA) / Shipment350 /
Shipment
Certificate of Approval2.
SIRIM
SCHEDULE OF FEES
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SIRIM
SCHEDULE OF FEES
No Description Fee (RM)Example
(Qty:4,500MT)
1. First 3000 MT 2,700 / Shipment RM2,700
2.Subsequent Weight (>3000
MT)0.70/MT
1,500 x RM0.70 =
RM1,050
3. Inspection Report 500/Shipment RM500
4. Testing Fee (If Applicable) 1,500/day/shipment -
5.
Incidental
• Port of Entry (from SIRIM
nearest branch)
Or
• Factory storage yard
• Refer Table 1: Incidental for Post-Shipment
Inspection (On-board)
Or
• As per SIRIM’s standard rate
Total: RM 4,250
Fee for Post-Shipment Inspection (on-board) at port of entry in Malaysia (Method Type 1C) or Fee for Inspection at Factory Storage Yard (Type 2)
Shipment via Open/Bulk Vessel
3.
*Total fee per shipment (not including incidental cost)
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No Port Incidental (RM) / Round Trip1. West Port, Klang 722. North Port, Klang 483. Lumut Port, Perak 336
No Port Incidental (RM) / Round Trip1. Johor Port, Pasir Gudang 722. Tanjung Langsat Port, Pasir Gudang 963. Tanjung Pelepas Port, Gelang Patah 72
No Port Incidental (RM) / Round Trip1. NBCT Port 242. BWCT Port 24
No Port Incidental (RM) / Round Trip1. Kuantan Port, Pahang 242. Kertih Port, Terengganu 1603. Kemaman Port, Terengganu 160
No Port Incidental (RM) / Round Trip1. Kuching Port 162. Miri Port Flight Ticket + Incidental (0.80/km)3. Bintulu Port Flight Ticket + Incidental (0.80/km)4. Sibu Port Flight Ticket + Incidental (0.80/km)
No Port Incidental (RM) / Round Trip1. Kota Kinabalu Port 402. Sepanggar Port 243. Sandakan Port Flight Ticket + Incidental (0.80/km)4. Tawau Port Flight Ticket + Incidental (0.80/km)5. Lahad Datu Flight Ticket + Incidental (0.80/km)
6. Labuan Port Flight Ticket + Incidental (0.80/km)
SIRIM HQ to Port (Central Region)
SIRIM Johor to Port
SIRIM Penang to Port
SIRIM Pahang to Port
SIRIM Sabah to Port
SIRIM Sarawak to Port
Incidental for Post-
Shipment Inspection at
Port of Entry
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SIRIM SCHEDULE
OF FEES
TABLE 1
SIRIM
SCHEDULE OF FEES
4.
*Total fee per shipment (not including incidental cost)
Shipment via containers
No Description Fee (RM)
Example
(Qty: 32 sampled
containers from total
180 containers)
1. First 3 containers RM 300 RM 300
2. Subsequent containers RM 10029 x RM100 = RM 2900
3. Inspection Report 500/Shipment RM 500
4. Testing Fee (If Applicable) 1,500/day/shipment -
5.
Incidental
• Port of Entry (from SIRIM
nearest branch)
Or
• Factory storage yard
• Refer Table 1: Incidental for Post-Shipment
Inspection (Off-board)
Or
• As per SIRIM’s standard rate
* Total: RM 3,700
Fee for Post-Shipment Inspection (off-board) at port of entry in Malaysia (Method Type 1C) or Fee for Inspection at Factory Storage Yard (Type 2)
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SIRIM
SCHEDULE OF FEES
Example of fee (RM) comparison
between importation methods
( Qty: 4,500 mt, open/bulk shipment)
No DescriptionType 1A
RM
Type 1B
RM
Type 1C
RM
Type 2
RM
1. Pre-Shipment
Inspection
9,200 As
charged
by FIB
As
charged
by FIB
2.Post-Shipment
Inspection 4,250
3. COA 350 350 350 350
4.
Inspection at
Factory Storage
Yard
4,250
Total Fee per
shipment (RM)9,550
350
+ FIB Cost
4600
+ FIB Cost4600
*Total fee per shipment (not including incidental cost)
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SIRIM
SCHEDULE OF FEES
*Total fee per shipment (not including incidental cost)
No DescriptionType 1A
RM
Type 1B
RM
Type 1C
RM
Type 2
RM
1.Pre-Shipment
Inspection9,200
As
charged
by FIB
As
charged
by FIB
2.Post-Shipment
Inspection 3,700
3. COA 350 350 350 350
4.
Inspection at
Factory Storage
Yard
3,700
Total Fee per
Shipment 9,550
350
+ FIB cost
4,050
+ FIB Cost4,050
Example of Fee (RM) comparison
between importation methods
Qty: 32 sampled containers from total
180 containers (4,500 mt)
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Issuing an invoice 1 working day
Inspection at Country of
Origin2-5 working days
Issuing of inspection report 2 working days
Total 5-8 working days
Evaluation of submitted
application documents
1 working day
Issuing an invoice 1 working day
Total 2 working days
Post-shipment inspection 1-4 working days
Inspection report and
Approval1 working day
Total 2-5 working days
1. Pre-Shipment Inspection by SIRIM
2. COA Application
3. Post-shipment inspection
(For Method Type 1C only)
CoA issuance upon payment
(Type 1A, Type 1B and Type 2) 1 working day
CoA issuance upon
compliance of Post-shipment
Inspection
(Type 1C)
1 working day
4. COA Issuance
Scheduling of inspection1 working day
Inspection process 2-5 working
daysInspection report and
Approval2 working days
Total 5-8 working
days
5. Inspection at Factory Storage Yard
(For Method Type 2 only)
CLIENT CHARTER
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On-Board
Inspection with
acceptable cargo
INSPECTIONACTIVITIES
21
INSPECTIONACTIVITIES
Off-board inspection
by containers with
non-conformance
cargo
22
Shredded metallic
material > 5mm in size
Coated copper wire or
coated aluminum wire
INSPECTION ACTIVITIESAcceptable and Non-Acceptable Samples
23
Electrical/electronic
waste material Cut wire cableUncoated copper material
INSPECTION ACTIVITIES
24
Acceptable and Non-Acceptable Samples
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