./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/LIC/Q/MYS/2
17 January 2000
(00-0168)
Committee on Import Licensing Original:  English
NOTIFICATION OF REPLIES TO THE QUESTIONNAIRE ON IMPORT LICENSING
PROCEDURES1
Replies of Malaysia to Questions from the United States2
The following communication, dated 5 January 2000, has been received from the Permanent
Mission of Malaysia.
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Import licensing on heavy machinery/construction equipment
A. The automatic licensing requirement on imports of heavy machinery, introduced in
October 1997, was largely to ensure that existing id le machinery was utilized, thereby optimizing the
use of foreign exchange.  Since the licensing requirement had been implemented, 100 per cent of all
applications for imports of heavy machinery not available in the country had been processed and
approved.
B. It is untrue to say that any priority is granted to applications from state enterprises or projects
which are, in the discretion of the authorities, important to national priorities.  All applications are
administered in a fair and equitable manner and, as provided for under Article 2(a)(i) through (iii) of
the Agreement on Import Licensing Procedures, are pr ocessed and approved within a maximum of ten
working days.
C. Importers are advised a priori to ensure that they obtain an approval permit prior to
proceeding with the shipment only as an additional precaution for themselves.
Responses to specific questions
1. The automatic import licensing system is temporary, but will be maintained for as long as
necessary.
2. This automatic licensing system was introduced only on a small number of items as a
monitoring mechanism, in accordance with Malays ia's trade, developmental and financial needs.
Article 2(b) of the Agreement on Import Licensing Procedures also recognizes "that automatic import
licensing may be necessary whenever other appropriate procedures are not available".
3. All applications for an import licence are proces sed and approved within a period of seven to
ten working days.
                                                     
1 G/LIC/N/3/MYS/1
2 G/LIC/Q/MYS/1G/LIC/Q/MYS/2
Page 2
4. As this automatic import licensing system does not entail any prohibition or quantitative
restrictions, the issue of violation of Article XI of the GATT 1994 does not arise.  If, however, in the
course of its implementation, characteristics of non-automatic licensing do arise, these will be looked
into and corrective measures undertaken.
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