MITI to consult Customs, MOF over machinery import duty issue

AYER KEROH: The issue of machinery import duties allegedly being imposed on local companies despite them securing exemption approvals from the Malaysian Investment Development Authority (Mida) will be raised with the Customs Department and the Finance Ministry (MoF).

Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the matter was raised by several industry operators during a dialogue session with the business community in Melaka yesterday.

He said some companies claimed they were forced to pay duties upon despite already possessing exemption approval letters from Mida.

He said there were allegations that such payments could not be refunded even after the exemption status was subsequently clarified.

"This should not be happening. There are several cases like this, and I will be taking this matter up with Customs and MoF.

"If this continues, Mida becomes redundant. Companies come and apply, Mida grants the exemption, yet when the machinery is brought in, they are still made to pay duties," he said.

Johari said such circumstances could adversely affect the cash flow of local companies, particularly small and medium-sized enterprises (SMEs) investing to enhance production efficiency.

"They decided to purchase machinery to improve production efficiency. That is precisely why we grant the exemption.

"I have not yet had the opportunity to examine the documents regarding the issues raised in earlier dialogue.

"However, provide me with the facts and complete details, and I will look into it. If the payments have not been refunded, we need to ask why. For how long will people respect Mida if situations like this occur?"

Johari said it was important that government agencies coordinate matters to ensure that every policy introduced is implemented effectively across all levels of enforcement.

He said dialogue sessions with the business community are vital for identifying policy implementation issues and gathering direct feedback from industry operators.