Warehousing Services Licence - Logistics Services
Updated: Sep 4
The term Logistics Services refers to the supply chain management process that designs, implements and controls the flow and storage of goods, services and information efficiently and effectively between the origin and consumption points to meet customer demand.
The main services in this area are as follows:
Warehousing, storage and inventory management services
Transportation services.
Freight forwarding/customs clearance and shipping services
Integrated Logistics Services (ILS)
International Integrated Logistics Services (IILS)
Cold chain facilities
Warehousing Services
There are three (3) types of licenses, depending on the operator's warehouse requirements. Operators can choose to operate as an ordinary warehouse, a Public Bonded Warehouse or a Private Bonded Warehouse.
Investors seeking to provide warehousing services are required to incorporate companies under the Companies Act 1965.
Licensing and Registration
(i) Ordinary Warehouse Licence
Companies wishing to provide ordinary warehousing services must apply for a license to the relevant local authority.
The following approvals must be obtained before applying to the local authority:-
Approval from the Department of Environment (DOE) when operators store dangerous goods.
Approval from the Fire and Rescue Department and other Technical Agencies to ensure that the premises is equipped with sufficient fire extinguishers and safety alarm systems.
A Certificate of Completion and Compliance (CCC) from the local authority, which is a formal document acknowledging that the building is safe to occupy. CCC is issued by the Principal Submitting Person (PSP) of the project who is a Professional Architect, Professional Engineer or Registered Building Draughtsman.
(ii) Public Bonded Warehouse Licence
Public Bonded Warehouse operates as a central repository for the distribution of bonded goods (i.e. unpaid customs duties and taxes) in this country and for international trade, serving the general public.
Public Bonded Warehouses that hold various categories of goods must comply with the following conditions:-
Category of Goods | Minimum Warehouse Space (square feet) | Minimum Paid-up Capital (RM) | Minimum Value of Goods Warehoused (RM) |
Critical Goods | 50,000 | 1,000,000 | NA |
Non-Critical Goods | 20,000 | 250,000 | NA |
(iii) Private Bonded Warehouse Licence
Private Bonded Warehouse is a central storage and distribution center for bonded goods (i.e. unpaid customs duties and taxes) of the companies and related companies.
Private Bonded warehouses containing various categories of goods must comply with the following conditions:-
Category of Goods | Minimum Warehouse Space (square feet) | Minimum Paid-up Capital (RM) | Minimum Value of Goods Warehoused (RM) |
Critical Goods | NA | 150,000 | 5,000,000 |
Non-Critical Goods | NA | 100,000 | 5,000,000 |
Activities that can be carried out in these warehouses are as follows:
Warehousing
Bulk breaking
Re-packaging
Re-labelling of imported goods
Consolidation
Entreport
Devending
A bonded warehouse is a designated area, approved by the Royal Malaysian Customs (RMC) for storing dutiable goods.
Companies wishing to provide public or private bonded warehousing services must apply to the Royal Malaysian Customs Department. The following approvals must be obtained before applying to the Royal Malaysian Customs Department:
Approval from DOE when operators store dangerous goods
Approval from Fire and Rescue Department and other Technical Agencies
CCC from the local authority
Other Licensing and Registration
Operators of Public or Private Bonded Warehouses licensed under Section 65 of the Customs Act 1967 may be authorized to act as agents to conduct business related to the import or export of goods stored in licensed warehouses. For this purpose, warehouse operators are required to obtain a Freight Forwarding Agent/Customs Agent Licence and/or a Shipping Agent Licence and Service Tax License.
The Service Tax Act 1975 applies throughout Malaysia except Langkawi, Tioman, Labuan, the Free Zones and the 'Joint Development Area'.
The service tax rate is 6%. Applications for the above licenses except for the Customs Agent Licence must be submitted directly to the Royal Malaysian Customs Department. Before obtaining a Freight Forwarding Agent/Customs Agent License from the Royal Malaysian Customs Department, the company must obtain International Integrated Logistics Services (IILS) status from MIDA.
Equity Policy
Ordinary Warehouse: There is no equity requirement imposed by the Royal Malaysian Customs Department. Investors only need to obtain a license from the local authority.
Public Bonded Warehouse: Companies must have at least 30% Bumiputera equity.
Private Bonded Warehouse: There is no equity requirement imposed by the Royal Malaysian Customs Department.
Connect with Bestar
If you have any enquiries or need clarification, please contact Bestar RW William.
