Client Alert May 2015

Transcription

1 Trade and Commerce Kuala Lumpur MEMBER FIRM OF BAKER & MCKENZIE INTERNATIONAL Client Alert May 2015 Proposed Import Licensing Requirement for Hybrid ICT Products from 1 October 2015 and Implementation of Self-Labelling Program from 1 June Proposed Import Licensing Requirement on Hybrid ICT Products (i) Introduction On 7 May 2015, the Malaysian Communications and Multimedia Commission ("MCMC"), together with its appointed certifying agency, SIRIM QAS International Sdn Bhd ("SIRIM QAS") released proposal papers to implement certain changes to the existing Customs (Prohibition of Imports) Order 2012 by adding additional categories of hybrid information and communications technology ("ICT") equipment that will require import licensing upon importation into Malaysia. The proposed import licensing regime will apply to 'new generation' products with multiple features and is said to cover a range of apparatus or equipment which includes computer products, medical devices, toys, and other electrical appliances which have an integrated for connecting with the public communications network, or for radio communication, utilizing frequency bands up to 420 THz. (ii) Proposed Implementation Date The draft amendments to the Customs (Prohibition of Imports) Order 2012 is currently being finalized by the Royal Customs Department of Malaysia with a view to implementing the changes by 1 October The amendments once implemented, is expected to cover 28 hybrid products that will be subject to import licensing. The 28 hybrid products fall under four main categories: (a) (b) (c) (d) Electrical & Electronic items - 13 items; Medical Devices - 4 items; Remote controlled toys & game players - 2 items; and Computers & others - 9 types of items. (iii) HS Codes and Description of Hybrid Products Based on guidance issued by SIRIM QAS, examples of hybrid products include Smart TVs, tablets, PCs, other automatic data processing machines, wireless mouse, dongle, keyboard, sound card, graphic card, barcode

2 scanner, air conditioners, remote control toys (RC cars, unmanned aerial vehicle), medical imaging system, and other products with WiFi or Bluetooth capability. Below are some examples of the affected tariff codes provided (nonexhaustive): Product Type Description of Goods HS Code Electrical and Electronic: Air Conditioner with Electrical appliance for distribution of conditioned air Refrigerator with (includes freezer and minibar) and does not include products exclusively for industry / commercial Fan with (includes air purifier, air cooler, etc.) and is self-contained Coffee / Tea maker with and is portable AV player (DVD, VCD, laser disc, etc.), Hi-Fi set, Smart TV, for recording and playback, reproduction of sound, connected to supply mains directly or indirectly, for indoor use Massager with a Device for relaxing massage, targets pain, is flexible, soft, and has adjustable intensity Robotic vacuum cleaner with a communications module (includes carpet cleaners, vacuum cleaners and accessories), is portable and removes dust, dirt or moisture and the like from floor coverings by suction or removes garden and refuse from lawns or paths and the like by suction but does not include a type promoted exclusively to industry/ commercial Medical Devices: Wireless heart rate sensor or stress test system Device designed to monitor/measure heart rate/stress Wireless digital blood pressure monitor Designed to monitor blood pressure Wireless active implantable medical device Automatic wireless remote monitoring and early detection of clinical and device-related events designed to serve as a Point of Care and Point of Wireless medical device , Information terminal within healthcare , applications and contains a , , Proposed Import Licensing Requirement for Hybrid ICT Products from 1 October 2015 and Implementation of Self-Labelling Program from 1 June 2015 May 2015

3 Product Type Description of Goods HS Code Toys: Remote controlled toys Device which operates wirelessly from a short distance and allow operation out of convenient reach for direct operation of controls Video game player with a Device which players control images on a television or computer screen that contains Computer and Others Digital camera and video Device which encodes digital images recorder, television and videos digitally and stores them for camera, with a later reproduction with communications module Smart watch with a Device which is a computerized wristwatch with functionality that is enhanced beyond timekeeping Wireless headphone and Device which receives audio signals earphone using radio frequency ("RF") waves rather than over audio cables Personal computer , including laptop, , notebook, tablet and , desktop presented either , in the form of a complete system or as a separate unit, with a The list of HS Codes and description provided by SIRIM QAS are meant for general reference only and is not meant to be exhaustive. Any other hybrid products which are not listed but are integrated with a communications module for connecting to a public communications network or for radio communications utilizing the frequency band up to 420 THz will also require import licensing (in addition to requiring type approval of such products). (iv) Import Licensing Approval Process Prior to applying for import licensing, any importer of hybrid product is required to first obtain a type approval of the wireless / wired communication module or interface card and the end product under the model name of the end product, combining all the individual approvals obtained for the relevant communication modules (WiFi, Bluetooth, GSM data, WLAN, WWAN module). Once type approval is obtained, the importer can then access the e-permit system to apply for import licensing for the relevant product sought to be imported into Malaysia. 3 Proposed Import Licensing Requirement for Hybrid ICT Products from 1 October 2015 and Implementation of Self-Labelling Program from 1 June 2015 May 2015

4 (v) Offence Any person who imports goods contrary to the Customs (Prohibition of Imports) Order 2012 commits an offence and shall upon conviction be liable to a fine not less than 10 times the amount of customs duty applicable to the product (or not less than 20 times for second and subsequent offences), or to imprisonment for a term not exceeding 3 years (or 5 years for second and subsequent offences), or to both. (vi) Summary Companies in the business of importing and distributing hybrid ICT products in Malaysia should take note of the timeframe for implementation of the import licensing requirement to prevent shipment delays arising from failure to obtain import licensing prior to exporting to Malaysia. 2. MCMC's Self-Labelling Program (i) Introduction On 24 February 2015 the MCMC and SIRIM QAS held a public meeting to announce the launch of the Self-Labelling Program ("SLP") for all communication and multimedia products required to be certified under the Communications and Multimedia (Technical Standards) Regulations Under the new SLP, importers, distributors and manufacturers of communications and multimedia products will no longer be required to apply for physical labels to be affixed onto such products, but can now adopt 'elabelling' or 'surface labelling' methods. E-labels may be incorporated into phones, computers, TVs, and such other communications and multimedia products through firmware or operating system (OS) which can be displayed, stored and retrieved from the product through the built-in display, and cannot be erased. Surface labelling on the other hand involves engraving, embossing, printing or any method of marking on the surface of the product which shall be legible, durable and readily visible. If printed or using adhesive stickers, the ink shall be permanent, indelible and cannot be smeared or rubbed off. The new SLP is said to be welcomed by manufacturers, importers and distributors of communications and multimedia products in Malaysia as it saves cost, processing time and manpower required to apply for physical labels and to carry out manual labelling on each product prior to placing on sale in the market. With the SLP, manufacturers can do the labelling during the manufacturing process itself. If the physical characteristics of the products do not permit surface labelling (e.g. too small, or in awkward shapes), labels may be applied to the smallest packaging unit or the documentation supplied with the product (e.g. warranty card, operating instructions, guarantee certificate). For e-labelling, instructions must be included in any documentation accompanying the product on how to view or retrieve the e-label. (ii) Timeline for Implementation The new SLP will be implemented with effect from 1 June 2015 to replace the current regime. No physical labels will be issued by SIRIM after 31 May 2015 and all manufacturers, importers and distributors will be required to migrate to the new SLP system. 4 Proposed Import Licensing Requirement for Hybrid ICT Products from 1 October 2015 and Implementation of Self-Labelling Program from 1 June 2015 May 2015

5 For further information please contact Adeline Wong Meng Yew Wong Randeep Singh As of 1 June 2015, certificate holders will be solely responsible for labelling their products in the approved form, through the acceptable labelling methods discussed above. (iii) Labelling Format Under the SLP, certificate holders will be solely responsible for obtaining from SIRIM QAS the correct image and certification number, in the approved format, size, and color (similar to the image below). Certificate holders will be responsible for affixing this image, and the other required information, onto each of their multimedia and communications products. An example of a self-labelling mark with the MCMC logo, the word 'MCMC', and the unique ID (in this case, of the Certificate Holder) is depicted below: Level 21, The Gardens South Tower, Mid Valley City, Lingkaran Syed Putra, Kuala Lumpur The height and width of the certification mark shall be no less than 8mm by 8mm. (iv) Penalty for Non-Compliance Any supplier of communications and multimedia product shall ensure that the product bears a certification mark or label approved by the MCMC to indicate that it complies with the standards. A supplier is defined to mean any manufacturer or importer of communications equipment or an authorised agent of the manufacturer or importer of communications equipment who holds a compliance certificate from the MCMC. Any person who breaches this requirement commits an offence under Regulation 22(3) of the Technical Standards Regulations and will be liable to a fine not exceeding RM100,000 or imprisonment for a term not exceeding 6 months, or to both, upon conviction Wong & Partners. All rights reserved. Wong & Partners is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm. 5 Proposed Import Licensing Requirement for Hybrid ICT Products from 1 October 2015 and Implementation of Self-Labelling Program from 1 June 2015 May 2015