MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) 18/19/2015OUTREACH PROGRAMME

PURPOSE To provide latest updates on MITI policies on implementation of mandatory standards on metal products 28/19/2015OUTREACH PROGRAMME

Introduction to Mandatory Standards Objectives of Mandatory Standards Chronology of Implementation Implementation of Mandatory Standards Exemption of COA Simplification of Application Procedures Updates on the Implementation of Mandatory Standards Conclusion SCOPE….WHAT WILL BE PRESENTED? 38/19/2015OUTREACH PROGRAMME

4 Under the IMP3 ( ): -develop, introduce and enforce mandatory standards on iron and steel products; and -enter into MRAs with trading partners. The absence of mandatory standards has caused difficulties in ensuring the required quality for locally produced and imported products. Mandatory Malaysian Standards on iron and steel products will be imposed in stages for both imported and locally produced products of iron and steel as stipulated under IMP3. 8/19/2015OUTREACH PROGRAMME INTRODUCTION OF MANDATORY STANDARDS

To ensure only products of acceptable quality are imported or produced locally; To protect the interests of local industries, consumers and environment; and Safeguard product quality, safety, technical standards to meet health, safety and environment requirements. 58/19/2015OUTREACH PROGRAMME OBJECTIVES OF MANDATORY STANDARDS

68/19/2015OUTREACH PROGRAMME CHRONOLOGY OF IMPLEMENTATION On 19 June 2003, the Government introduced Malaysian Mandatory Standards on 4 tariff codes of wire products: ; ; ; and Any products fall under these tariff codes must get Certificate of Approval (COA) issued manually by CIDB.

7 CHRONOLOGY OF IMPLEMENTATION (Cont.) Effective 15 November 2008, mandatory standards have been enforced on 57 tariff codes of iron and steel products: - Billets;- Steel bars; - Wire rods;- Angles, shapes and sections; and - Non-alloy steel. Effective 1 August 2009, mandatory standards were enforced on 627 tariff codes: -HRC (Hot Rolled Coils); -CRC (Cold Rolled Coils); and -Pipes and tubes. Effective 13 August 2009, MITI has temporarily suspended the imposition of mandatory standards enforced on 1 August 2009 to address implementation issues. 8/19/2015OUTREACH PROGRAMME

8 CHRONOLOGY OF IMPLEMENTATION (Cont.) On 13 October 2009, mandatory standards on 187 tariff lines for iron and steel were enforced and superseded earlier Orders: - 57 tariff lines made mandatory on 15 Nov. 2008; and tariff lines made mandatory on 1 st August Products include intermediate raw materials such as: -HRC;- CRC;- Steel bars; -Billets;- Sections;- Wire rods; -Pipes and tubes;- Scaffodling;- Sheet piles; -Rails; and- anhole covers. 8/19/2015OUTREACH PROGRAMME

Importation enforcement under Customs Order (Import Prohibition). Importation must acquired CERTIFICATE OF APPROVAL (COA) issued based on testing and verification for standard compliances. Enforcement agencies/Issuance bodies: -CIDB for construction products; and -SIRIM QAS Intl. for non-construction & manufacturing products. 8/19/2015OUTREACH PROGRAMME9 IMPLEMENTATION OF MANDATORY STANDARDS

Testing Bodies SIRIM Berhad IKRAM QA Services Sdn. Bhd; and Any accredited laboratories/testing bodies as recognised by Standards Malaysia KKR is amending the CIDB Act 1994 which will impose mandatory standards on imported and local materials for usage in construction sector: passed at the Parliament on 12 July 2011; and scheduled for implementation in /19/2015OUTREACH PROGRAMME10 IMPLEMENTATION OF MANDATORY STANDARDS (Cont)

(a)Automatic Exemption Licensed Manufacturing Warehouse Free Industrial Zones Manufacturers with Licensed Manufacturing Warehouse (LMW) status and companies operating in Free Industrial Zones (FIZ); or 500kg and below Importation per item weighing 500kg and below. EXEMPTION FROM THE COA REQUIREMENT 8/19/201511OUTREACH PROGRAMME

b) Based on application basis oil and gasautomotive maritime or shipbuildingaerospaceE&E Manufacturers (Tier 1 & Tier 2) who are directly involved in oil and gas, automotive, maritime or shipbuilding, aerospace and E&E sectors; and Steel service centres Steel service centres, the exemption will be considered only for products imported for the consumption of oil and gas, automotive, maritime or shipbuilding, aerospace and E&E sectors. EXEMPTION FROM THE COA REQUIREMENT (Cont) 8/19/201512OUTREACH PROGRAMME

Online COA application Online COA application via Dagang Net since 13 October 2009; 1-3 working days Testing and verification prior to the issuance of COA will take 1-3 working days; temporary COA transport the imported products factory premises To avoid delays and additional charges in customs clearance at customs entry points, SIRIM and CIDB will issue temporary COA to importers to transport the imported products to their factory premises, prior to product testing and verification process; SIMPLIFICATION OF APPLICATION PROCEDURES 8/19/201513OUTREACH PROGRAMME

SIMPLIFICATION OF APPLICATION PROCEDURES recognise testing and verification reports MRAencouraged The measure to recognise testing and verification reports from accredited foreign laboratories under the mutual recognition arrangement (MRA) is encouraged to simplify compliance to mandatory standards, subject to the approval from the Department of Standards; and reduced 39% Rate of charges for testing and verification, as well as issuance of COA, has been reduced by SIRIM by 39% in 2009.

UPDATES ON THE IMPLEMENTATION OF MANDATORY STANDARDS  Committee for application of COA exemption has been established to discuss issues arising from the implementation of mandatory standards.  Committee members - officials from SIRIM QAS Intl, CIDB, MOF, Customs, MIDA and Standards Malaysia. The Committee will be chaired by Senior Director, Sectoral Policy & Investment Affairs, MITI.  TOR of the Committee are: to verify applications received by MITI for COA exemption; to address and discuss any issues with respect to the implementation of COA; To update & monitor the issuance of COA by SIRIM QAS Intl and CIDB; and to review the procedures and guidelines for COA. 8/19/201515OUTREACH PROGRAMME

16 IMPLEMENTATION OF MANDATORY STANDARDS ON ALUMINIUM PRODUCTS Only products comply with mandatory standards are allowed to be imported and produced locally; To ensure raw materials in end products meet the quality and safety requirements; To monitor importation of sub-standards products; To enhance competitiveness and quality of local aluminium industry; and To reduce dependency on imported products as local producers are able to meet required standards. 8/19/2015OUTREACH PROGRAMME

17 Cooking Equipment powerlines furniture Construction Transport Aluminium usage packaging 8/19/2015OUTREACH PROGRAMME

HS CodeDescriptionApplicationStandard Application HS Aluminium plates, sheets and strip; of a thickness exceeding 0.2 mm, rectangular (include square), whether alloyed or unalloyedBuilding material, signage, fabrication component and other engineering applications MS2040:2007 HS HS Other aluminium plates, sheets & strips; of a thickness exceeding 0.2 mm: whether alloyed or unalloyed HS Aluminium products for Mandatory Standards 8/19/2015OUTREACH PROGRAMME

HS CodeDescriptionApplicationStandard Application HS Aluminium foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials), of a thickness (excluding any backing) not exceeding 0.2mm, not backed: rolled but not further worked Material for manufacturing of air-cond, building insulation and other types of food packaging MS1848:2005 HS Other aluminium foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials), of a thickness (excluding any backing) not exceeding 0.2mm not backed 19 Aluminium products for Mandatory Standards (Cont.) 8/19/2015OUTREACH PROGRAMME

8/19/2015OUTREACH PROGRAMME20 Schedule of Implementation September 2011: Gazette of the mandatory standards on 6 aluminium products Aug-Sept 2011: Outreach Programmes by SIRIM and CIDB 1 st November 2011: ENFORCEMENT

To be enforced based on the current procedures for mandatory standards on iron & steel: Importation enforcement under Customs Order (Import Prohibition). Enforcement will be divided into construction and manufacturing products. Importation must acquired CERTIFICATE OF APPROVAL issued based on testing and verification for standard compliances: -CIDB for construction products; and -SIRIM QAS Intl. for non-construction & manufacturing products. 8/19/2015OUTREACH PROGRAMME21 Enforcement Agencies/Issuance Bodies

Implementation of mandatory standards will: minimise importation of sub-standards products; ensure consumer’s safety and health; and support development and competitiveness of local producers by producing high quality products that meet international standards.  The absence of mandatory standards had caused difficulties in ensuring the required quality for locally produced and imported products.  Mandatory Standards on metal products would be accelerated, implemented and enforced in stages for both imported and locally produced products. CONCLUSION 8/19/201522OUTREACH PROGRAMME

Thank You 238/19/2015OUTREACH PROGRAMME