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Approved Permits - APs

Approved Permits, generally known as 'AP' is a mechanism to control imported cars, it was gazetted based on the Malaysian Customs Act 1967, meant to protect the National Car - Proton. Which was established in year 1983, initiated by the former prime minister Tun Dr. Mahathir bin Mohamad.
 
There are two types of APs issued by the Ministry Of International Trade and Industry - MITI:
1) Franchise APs that are given out for free to franchise holders of car brands registered with MITI.
2) Open APs that are sold to parallel importers at RM10,000 per piece to import cars of any brand to sell in Malaysian market.

The total number of APs issued each year is capped at 10 per cent of the number of local-assembled cars in the preceding year.
 - 60 per cent of APs are given to Bumiputera Open AP holders
 - 40 per cent are given to franchise holders

But, the prevalence of parallel-imported vehicles in this country, and the opaque manner in which Open APs are given, not only concerns to the franchise holders, it is also contradiction with NAP - the National Automotive Policy. Which was drafted to enhance Malaysian Industry to the next level.

NAP has been implemented since 2006, in the interest of Proton, Produa and other Malaysian Produced Cars. Under the NAP, imported cars are subject to varying degrees of import duties depending on the origin of manufacture and engine displacement.

Cars imported from the ASEAN member countries such as Thailand and Indonesia are subject to the least import duties, whereas those from other regions such as Europe and America are paying higher.

The import duties of the NAP have been progressively revised and reduced in line with the eventual liberation of the market.

Open APs were supposed to have been abolished by 2010.

Nontheless, NAP in 2009 stated that
"Malaysia is committed in its obligation under ASEAN and WTO. Therefore, the NAP Review has also taken into consideration Malaysia's commitments under both ASEAN and WTO. Malaysia will continue to implement its commitments under FTAs on the removal and reduction of import duties for automotive products."

"In line with Malaysia's international commitments, the AP system will be terminated as follows:

  • Open AP for used vehicles (commercial, passenger and motorcycles) to be terminated by 31 December 2015
  • Franchise AP to be terminated by 31 December 2020."

The commitment given in 2006 NAP implementation was actually withdrawn and the abolishment of Open AP was pushed to 2015.


Take away

However, individual such as expatriates and Malaysian worked or studied overseas for more than one year are allowed apply for AP in order to import their car for personal use. But, application must be forwarded to the Ministry of International Trade and Industry for the JK69 form to be endorsed.

For expatriates, the following documents shall be required:

  • 1. A letter of application addressed to MITI for the importing of a car from your home country to Malaysia.
  • A JK69 form must be purchased and duly completed.
  • Documentation indicating proof of ownership for minimum 3 years. (Typically this will be a purchase receipt or transfer of ownership/letter from the previous owner if the car was purchased second-hand)
  • The original and photocopied registration.
  • The cars original insurance documents and/or a letter from the insurance company.
  • Work permit and letter of contract from employer in Malaysia.
  • A photcopy of passport.

Upon submission of the documents to the MITI officer in charge, it will be a short interview.

Whereas, for Malaysian citizen who worked or studied overseas for at least one year:
It is required to purchase Form JK69 and get endorsed by MITI.


In Summary,
individuals eligible to bring in vehicle for personal use are as follows:
i. Malaysians studying overseas (at least diploma level) for more than a year and returning home permanently. Accompanying spouse is not eligible.
ii. Malaysians working legally on a permanent post overseas (at least a year) and returning home permanently. Accompanying spouse is not eligible.
iii. Government officials posted overseas for more than a year. Accompanying spouse is eligible for one AP.
iv. Expatriates with valid working pass/permit. The importation of the personal vehicle is subject to re-export condition upon termination of work employment in Malaysia.
v. Participants of Malaysia My Second Home Programme (MM2H).
vi. Malaysians specialists returning home under the Ministry of Human Resource program.

Form JK69, is in a set of carbonised copy, cannot be downloaded from internet.
The form is available at:
Percetakan Nasional Malaysia Berhad
Jalan Chan Sow Lin
50554 Kuala Lumpur
Tel  : +603-9221-2022
Fax : +603-9222-0690


MITI Office and contacts:
i) Trade Services Division
Ministry of International Trade and Industry
2nd Floor, Block 10 Government Offices Complex
50622 Jalan Duta
Kuala Lumpur
Tel : +603-8000-8000
Fax: +603-6201-2337
Email: webmiti@miti.gov.my

ii) MITI Cawangan Sabah
Tingkat 3, blok D
Bangunan KWSP
49,Jalan Karamunsing
88622 Kota Kinabalu
Sabah
Tel:   +6088-239061
Fax : +6088-235645

iii) MITI Cawangan Sarawak
Tingkat 3, Bangunan Bank Negara
93400 Kuching Sarawak
Tel :  +6082-257164
Fax : +6082-417835