DUTY & TAX EXEMPTION - MORE DETAILED EXPLANATIONS
Vehicles
Under the scheme new and second hand vehicles can be imported and
further modified or rebuilt in Malaysia but they can never be
registered for private use so as not to create any abuse of the current
AP system.
Locally built vehicles are also exempt from excise duty and sales
tax as are locally manufactured parts, tyres and safety apparel.
The scheme is strictly for vehicles which are used solely for motor
sport competition. Vehicles which are for daily use also will not
qualify.
Rally cars and other off-road vehicles, if they are only used for
competition but have to drive on the road (transport stages) in
conjunction with events, are eligible as well. MAM are currently
working out the registration requirements with JPJ. The compliance will
be very strict and while some road testing may be allowed it will be
strictly limited. The vehicle registration arrangements and conditions
will be made known shortly.
Competitors and Teams will only be granted exempt permits if MAM is
satisfied that vehicles and parts are strictly for competition.
Importation of vehicles for non existing competition series will not be
allowed.
Most vehicles must have a Motor Sport Vehicle Log Book which MAM
will issue. The MSV Log Book is the key element governing the scheme as
it will clearly identify the vehicle. All Log Book entries will be
entered in a computerised data-base allowing for extensive monitoring
to ensure compliance. The MSV Log Book will cost between RM200 and
RM500.
Exempt vehicles can only be imported by competitors holding a
Competition Licence or a Team holding an Entrants Licence issued by
MAM. General import for later sale is not allowed.
General Exemptions, Go Karts, Bikes, Tyres and Safety Apparel
Go karts, mini bikes, motocross bikes and certain other bikes will
not need a MSV Log Book as they cannot be used for anything but motor
sport competition. Bikes which can be potentially used on the road will
require a MSV Log Book.
Tyres and safety apparel also enjoy general exemption.
Importers and local manufacturers are allowed to import and sell the
above items duty/excise/sales tax free directly to competitors and
teams holding valid MAM licenses without the competitors and/or teams
first obtaining an exempt permit from MAM. The Sellers will report the
sale to MAM monthly. Companies wishing to sell the items must first
obtain approval from MAM to do so. Approved companies must enter into
an agreement with MAM for the operation and compliance with the scheme.
Components and Spare Parts
Only competitors and teams are allowed to import components and
parts for their own use. No importation for sale over the counter is
allowed. This is simply to ensure compliance. MAM will closely monitor
that components and parts are used for their intended purpose and not
sold for use in private vehicles. Competitors also using their vehicles
for private use will not qualify for exemption.
If you own a vehicle which is already used for competition, with or
without duty and taxes paid, it will still qualify under the scheme
provided that it is used for competition only. For example, a
competitor owning an older road registered rally car which is only used
for competition (and not as a private car whatsoever) will be allowed
to import parts and components or purchase locally manufactured parts
and components duty/tax free. However, a MSV Log Book must first be
obtained from MAM.
Compliance
The Ministry of Finance and Ministry of International Trade and
Industry can revoke the scheme anytime if it is abused. Therefore MAM
will have very strict procedures in place. That is why it is necessary
to have a MSV Log Book for vehicles which potentially could find their
way onto the road. The vehicle will be clearly identified in the Log
Book and certain tracing methods will be used.
Components and spare parts for such vehicles could also potentially
find their way to places where they shouldn't. Therefore all purchases
will be recorded in the Log Book as a means of monitoring parts
consumption.
The consequences of being caught are very severe. Not only will all
duties and taxes have to be paid, there will also be huge fines.
Vehicles and parts may also be confiscated.
The severity of the consequences is, of course, nothing to worry about if you do the right thing and play by the rules. |
