Problems relating to Trade and Investment on Malaysia
19. Industrial standards, approval of safety standards |
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Issue |
Issue details |
Requests |
Reference |
| (1) Complex and Delayed Evaluation Procedures for Compatibility Certification | - On 13 October 2009, the COA requirement was resumed with the reduction in the subject products from 627 to 187-items, exempting LMW and FIZ of less than 500 kgs from the COA acquisition requirement. Also exempted are special steel products destined to manufacturers and service centers of 5-industries (car, electric/electronic appliances, aeronautics/space, oil/gas, shipping/ship building.) In addition, by filing application, individual products could be exempted case by case at the SIRIM's discretion. As it stands, excluding the exempted items mentioned above, under the going COA inspection, sampling is necessary per shipment, per size for inspection, regardless of if the products are from the same factory, using the same steel materials and specifications. Because of this requirement exporters must cope with excessive inspection cost and clerical workload. Moreover, SIRIM's COA duplicates the MIL inspection items in many respects. Rather than serving for elimination of poor quality materials, it causes delay in import and complexity in procedural issues. The parties in concern look forward to its early abolition and simplification. |
- It is requested that GOM: -- repeals COA-R scheme, if not -- clarifies the procedures (including the exemption system), and -- simplifies the procedures. |
- CIDB Certificate of Approval Requirement - Custom Order 2012 (on Prohibition of Imports) |
| (Action) - Since 15 November 2008, Certificate issued by SIRIM Berhad (Malaysia Standard Industrial Research) has been made a requisite requirement. Inspection of officer takes place at bonded warehouse or customs warehouse, and the landed cargoes must be moved in and out of the warehouse at cost, including the demurrage that arises if the goods are held in the warehouse for more than 3-days. Inspection fees and certificate issuance fees are also incurred. - On 1 August 2009, the scope of products subject to MCI has been expanded to 627 items, including steel sheet. Import procedure has been made complex, while additional costs are incurred, affecting distribution. - On 13 August 2009, SIRIM had to suspend temporarily its COA Inspection due to the clutter of imports (which lasted until 12 October 2009). - On 13 October 2009, GOM resurrected the certificate of approval requirement (COA-R) by reducing the items of iron and steel products (ISPs) subject to the COA-R from 627 items to 187 items, while exempting COA-R on LMW, FIZ and steel plate of less than 500 kgs. Furthermore, GOM has exempted COA-R as regards Manufacturers and the Steel Service Centre for the ISPs destined to the 5-Industrial Sectors (Car, Electric and electronics, aerospace, Oil/gas, Shipping and Ship building). In addition, SIRIUM may at its discretion grant exemption from COA-R based upon individual application. As it now stands, SIRIM compels the COA Inspection on each shipment, requiring sampling for each size of the products, even if the products are manufactured in the same plant, of the same steel type and the same specifications, with the exception of the exempted items mentioned above, Manufacturers must absorb the costs for exorbitant inspection fees, and the heavy clerical work. Moreover, numerous test items under SIRIM's Compatibility Inspection dovetail the MIL-STD Inspection Items. SIRIM Inspection thus serves no purpose for prevention of poor quality products other than delaying and complicating the import procedures. Its early repeal or simplification is in order. - On 22 January 2013, Ministry of Internal Trade and Industry (MITI) announced repeal of Temporary COA (TCOA) for COA (certificate of approval) Ruling, which is necessary upon import of steel products, the reason for repeal being the existence of some importers who take advantage of TCOA for unjustifiable purposes. More stringent COA employment, while blocking import of substandard steel products, will be a cause for concern over the import procedures, which may get even more complex. |
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| (2) COA Procedures Made More Stringent | - Since 21 February 2013, SIRIM has made COA Scheme more stringent (making COA acquisition compulsory upon import over 144-items. Temporary certificate of approval (TCOA) was abolished (however, with a grace period of 6-months). As to special products destined to the 5-specific purposes, comprehensive package application is available once a year across-the-board. Changed COA application process: 1. Long-term (valid for 1-year after product certification test by foreign certification body (CB) or SIRIM or 2. Short-term (full type test by local or foreign CB validity determined each time). Procedures have been made more stringent, including sampling inspection at the loading port, SIRIM visit to factories, etc. For short term, sampling scheme is available at unloading port for small-scale importers.Implemented from 22 August 2013. - On 31 December 2012, SIRIM announced 141-items of the products that become subject to the COA requirements, beginning 1 March 2013. |
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| (Action) - In August 2014, Ministry of International Trade and Industry (MITI) added 27-items of section steel, wire grille, etc. to the list of products subject to mandatory standard. To get these products cleared through the customs, it requires acquisition of certificate of approval (COA). |
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