Bernama: 18 New Policies And Measures Under NAP Review
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http://www.bernama.com/bernama/v5/newsbusiness.php?id=450469
18 New Policies And Measures Under NAP Review
KUALA LUMPUR, Oct 28 (Bernama) -- The 18 new policies and measures covering licensing, duties, incentives, technology and environment, safety and standards and approved permits (AP) introduced under the National Automotive Policy (NAP) Review announced by Minister of International Trade and Industry Datuk Mustapa Mohamed here Wednesday are as follows.
1 MANUFACTURING LICENCE (ML)
* The freeze on issuance of new ML will be lifted for selected segments like:
- luxury passenger vehicles with engine capacity of 1,800cc and above, and on the road price of not less than RM150,000;
- hybrid and electric vehicles;
- pick-up trucks;
- commercial vehicles; and,
- motorcycles with engine capacity of 200c.c and above.
* No equity condition imposed in new ML.
* Maintain current policy on contract assembly to utilise existing excess capacity.
2 MAINTAIN FREEZE ON MANUFACTURING LICENCE FOR RECONDITIONING AND REASSEMBLING (REBUILT) ACTIVITIES
* The freeze on ML for rebuilt activities is maintained.
3 DUTY/TAX
* The current rates of import duty and excise duty are maintained.
The current import duty for completely build up (CBU) and completely-knocked down (CKD) vehicles are:
MOST FAVOURED NATION (MFN)
CBU: 30 pct (motor vehicles);
CKD: 10 pct (motor vehicles);
CBU: 30 pct (motorcycles); and,
CKD: 0-10 pct (motorcycles).
ASEAN FREE TRADE AREA (AFTA)
CBU: 5 pct (both motor vehicles and motorcycle)
(effective 1.1.2010 - 0 pct for CBU)
CKD:
Nil
The current excise duty for CBU and CKD vehicles based on engine capacity are:
Passenger cars: 75-105 pct;
MPV/van: 60-105 pct;
4WD: 65-105 pct; and,
Motorcycles: 20-30 pct.
4. GRADUAL REMOVAL/REDUCTION OF IMPORT DUTY TO MEET AFTA/FTA COMMITMENTS
* Malaysia will continue to implement its commitments under Association of South-East Asian Nations and other existing and new free trade agreements (FTs).
* Import duty reduction/abolishment is implemented as agreed under respective FTAs.
* Details on duty structure available can be obtained at Ministry of International Trade and Industry website,
www.miti.gov.my
Current Status:
Import duty for CBU and CKD vehicles are:
MFN
CBU: 30 pct (motor vehicles);
CKD: 10 pct (motor vehicles);
CBU: 30 pct (motorcycles); and,
CKD: 0-10 pct (motorcycles).
AFTA
CBU: 5 pct (both motor vehicles and motorcycle)
(Effective 1.1.2010 - 0 pct for CBU)
CKD: Nil
5. TAX EXEMPTION ON VALUE OF INCREASED EXPORTS OF VEHICLES AND PARTS/COMPONENTS
* Increase exemption on statutory income:
From 10 pct to 30 pct for goods that attain at least 30 pct value-added.
From 15 pct to 50 pct for goods that attain at least 50 pct value-added.
6. GAZETTE PRICE OF IMPORTED USED VEHICLES TO ADDRESS UNDER DECLARATION
* Establishment of gazetted price for imported used CBU motor vehicles.
7. BETTER INCENTIVES FOR CRITICAL AND HIGH VALUE-ADDED PARTS/COMPONENTS PRODUCTION
* 100 pct pioneer status (PS) for 10 years; OR
* 100 pct investment tax allowance (ITA) for 5 years
For the manufacturing of the following products:
- transmission system;
- brake system;
- airbag system; and,
- steering system.
8. PROMOTE HYBRID/ELECTRIC VEHICLES AND DEVELOPMENT OF RELATED INFRASTRUCTURE
* Incentives to local assemblers/manufacturers of hybrid/electric vehicles
- 100 pct ITA or PS for a period of 10 years;
- customised training and R&D grants in addition to existing grants;
- exemption of 50 pct on excise duty for locally assembled/manufactured vehicles or provision of grant under Industrial Adjustment Fund (IAF); and,
- 100 pct PS for 10 years or 100 pct ITA for 5 years for manufacture of selected critical components supporting hybrid/electric vehicles.
* Additional attractive customised incentives will be considered based on proposed activities.
* The Ministry of Energy, Green Technology and Water will draw up roadmap to develop infrastructure for electric vehicles.
9. MEASURES TO MITIGATE IMPACT OF MARKET LIBERALISATION
* Automotive Development Fund (ADF) established under Ninth Malaysian Plan (9MP) to improve competitiveness of parts and component manufacturers through soft loans and grants will be continued.
* Under Industrial Adjustment Fund (IAF), grants have been made available to companies that create significant economic contribution also will be continued.
10. FULL IMPLEMENTATION OF VEHICLE TYPE APPROVAL (VTA)
* Ministry of Transport will accord priority under 10MP to establish VTA standards and testing facilities.
11. GRADUAL INTRODUCTION AND ENFORCEMENT OF MANDATORY STANDARDS FOR PARTS/COMPONENTS
* Ministry of Science, Technology and Innovation will coordinate and immediately formulate roadmap on enforcement of mandatory standards for automotive products.
12. GRADUAL PHASE-OUT OF IMPORTED USED PARTS/COMPONENTS
* Government will introduce a mechanism to prohibit imports of used parts/components effective from June 2011.
13. GRADUAL PHASE-OUT OF IMPORTED USED COMMERCIAL VEHICLES
* Imports of used commercial vehicles will be prohibited effective from Jan 1, 2016 in line:
- gradual phase-out of imports of used parts/components; and,
- termination of AP system for used passenger vehicles.
14. CLEAR ROADMAP ON IMPLEMENTATION OF FUEL STANDARDS
* The Government will implement EURO 4M standards by 2011.
* The Ministry of Natural Resources and Environment will establish clear roadmap for fuel standards and quality.
15. GRADUAL INTRODUCTION OF VEHICLE END OF LIFE POLICY
* Introduction of mandatory annual comprehensive inspection as requirement for road tax renewal for vehicles aged 15 years or older.
* This is an initial measure towards implementation of the vehicle end life policy.
* The Ministry of Transport will formulate a roadmap to implement the vehicle end life policy.
16. TERMINATION OF AP SYSTEM FOR IMPORTS OF CBU VEHICLES
* Open AP for used vehicles (commercial, passenger and motorcycles) will be terminated by 31 December 2015;
* Importation of used vehicles is not allowed after 2015;
* No new applications for Open AP will be considered; and,
* Franchise AP will be terminated by 31 December 2020.
17. ESTABLISHMENT OF FUND FOR BUMIPUTERA DEVELOPMENT
* A charge of RM10,000 for each unit of Open AP issued will be introduced.
* A fund will be established to assist Bumiputera companies venturing into automotive and other businesses.
18. ESTABLISHMENT OF STRATEGIC PARTNERSHIP FOR PROTON
* New strategic partnership between PROTON and a global established OEM will be established.
-- BERNAMA
