Friday, March 1, 2013

Seafreight Import and Export General Procedure flows

Ocean transported cargoes will be discharge at Malaysia Sea Ports , Port Klang for Centre ,Pasir Gudang and Tanjung Pelepas for the Southern, Penang Port for Northern and Kuantan for Eastern of Peninsular Malaysia . For Borneo ,East Malaysia will be at Kuching , Sibu, Bintulu , Kota Kinabalu , Labuan , Sandakan , Tawau and Miri.  These are Malaysia common ports.

General Cargo Import and Export Flows

Importer and Exporter can be represented by appointed custom broker ( Forwarding agent) .
Malaysia customs regulation . Only 3 custom brokers were allowed to be appointed at any one time and valid for 6 months.

The Import flows start upon cargoes discharged from vessel into Port Free Zone area
i)   Manifesting . Shipping operator or the carrier of the goods will submit cargo information (K4 customs form) for import and produce Delivery Order- DO
ii)  Importer will surrender BL for exchange of DO
iii) Importer proceed custom clearance with custom form K1(foreign import),K3(within Malaysia) or K8 ( Bonded or Free Zone delivery)
iv) Importer submit custom approved form and DO to Terminal Operator CIS (central invoicing section) CIS process, raise charges and release Gate Pass ( containerize) .
v) For loose cargo , Importer proceed to warehouse. Terminal operator release cargoes and Gate Pass to Importer
v) Containerize Importer submit Gate pass and ROT (Request of Transport ) to Haulier Company
vi) Haulier send request for delivery to Terminal Operator via Terminal Operators link system.
vii) Haulier pick up container
viii) Free Zone Gate custom sight Gate Pass and custom approved form before release cargoes to exit.

The Export flow start when cargoes confirmed to enter Port Free Zone area .

i) Exporter upon products ready for export
a) Container shipment - Exporter submit Consignment Note (CN) to haulier
1a) Haulier will pick up empty container for stuffing from depot to export premise.
2a) Haulier will compute time and made booking and register container number with terminal operator system
b) Less container load ( Loose cargo) Exporter to obtain Container Shipping Note from Container operator and prepare lorry chit to deliver cargo to CFS ( Container freight station)
c) Conventional - confirmation of port opening (earliest date cargo can be accepted into Port store) .Prepare integrated export document (IED), custom form K2 , K3 or K8 ,packing list , lorry chit and obtain Integrated shipping document (ISD) from shipping agent
ii) Haulier presents CN while LCL and Conventional lorry presents lorry chit to customs at FCZ Gate to enter Port FCZ area
iii) Container will be received in stack , Loose cargo receive in Shed, while Conventional cargo, exporter need to submit packing list to CIS for approval and obtain location for cargo receival. Document IED will be depatch with cargo to allocated location and upon received , all details recorded in IED depatch to CIS.
iv) Exporter submit customs form K2, K3 or K8 and CN ,CSN or ISD to obtain export clearance from customs
v)  Exporter submits CN, CSN or ISD to CIS for billing .Upon this ,
a) Container will be planned to load on nominated vessel
b) Loose cargo , the consolidator will nominate container for stuffing and prepare container packing list  . Submit CMO and CN to Container operator . The CFS will then stuff the loose cargo consolidated into container as per container packing list and endorse it.
c) Conventional , CIS transfer ISD to Wharf . Terminal Operator load cargoes onto vessel and record ISD. ISD will be later depatch back to CIS to match with IED for billing.
vi) BL will be then issued and export manifest K4 will be declared by the shipping agent or the consolidator.

Notes for non general goods.
i)All Dangerous Goods must obtain approval from Dangerous Good Department , KPA
ii) Import or export permit required category such as live plant, perishable,ocean produce, wild life, pharmaceutical produce and etc , are most important to first obtain approval permit before importing or exporting proceeding. Information of permit required items can be found in custom tariff. Or Malaysia customs web.

Below is Flow for LCL export /import

Legend Export Flow
1) LCL : Lesser than Container load
2) LC : Letter of Credit
3) PIA : Permit Issuing Agencies
4) SA: Shipping Agent
5) FF : Freight Forwarder
6) CFS: Container Freight Station
7) SMK: Sistem Maklumat Kastam
8) OBL : Ocean Bill of Lading
9) HBL : House Bill of Lading
10) COO : Certificate of Origin
11) IED : Integrated Export Document

Legend import flow
1) LCL - Lesser than Contaier Load
2) COO - Certificate of Origin
3) FTA - Free Trade Area
4) PIA - Permit issuing Agencies
5) FA - Forwarding Agent
6) SA - Shipping Agent
7) FF- Freight Forwarder
8) CFS- Container Freight Station
9) OBL- Ocean  Bill of Lading
10) HBL - House Bill of Lading
11) DO - Delivery Order
12) IID - Integrated Import Document
13) SMK - Sistem Maklumat Kastam
14) CVI - Custom verification Initiative
15) OGA - Other Government Agencies
16) SSR - Special Service Request
17) COR - Custom Official Receipt

Below is Import /Export flow for Dry Bulk Cargo

Legend import flow
1) PIAs - Permit Issuing Authorities
2) FTA - Free Trade Agreement
3) MOF- Ministry of Finance
4) K1 Form - Custom declaration form for import
5) DNT -Dagang Net Technologies (e-service provider)
6) SMK-DNT- Electronic data Interchange system used by Customs for export declaration
7) IID : Integrated Import Document
8) SMK : Sistem Maklumat Kastam
9) LMW - License Manufacturing warehouses
10) EFT - Electronic fund transfer (Applicable to only 8 banks)
Maybank, CIMB, Public Bank, RHB Bank, EON Bank, Alliance Bank,Affin Bank and AmBank

Legend Export Flow
1) PIAs - Permit Issuing Authorities
2) K2 Form - Custom declaration form for export
3) IED - Integrated Export Document
10) EFT - Electronic fund transfer (Applicable to only 8 banks)
Maybank, CIMB, Public Bank, RHB Bank, EON Bank, Alliance Bank,Affin Bank and AmBank


Anonymous said...

Hi can you advise I want to sea freight the. Consignment (hardware spare part)China delivery via sea freight to port klang, then sea freight to Miri sarawak(east MALAYSIA)

How much would this cost? And break down ? Please email me

VK said...

Hi, hope you get reply from some agent. Your shipment should be arrange direct from China to Miri, most probably via Singapore ( if LCL ) unless you wanted to make double custom clearance at Port Klang. (Import K1 and export to East Malaysia K3).

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Calvin Yoo said...

Hi , can you please help advise :
What kind of documents need prepared by Haulier ? Any guidelines to let us understand when to use them? Thanks in advance!

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Chiffon said...

Hi VK, thumbs up for your blog. My company wish to import tobacco by sea to either Port Klang or Penang, but I am very new to the import requirements and procedures, would appreciate your help with my following enquiries:
1) What are the steps I need to undertake to import tobacco?
2) How much do I incur to appoint 3 agents for 1 shipment?
3) What is the standard contract term that I need to sign with each agent?
4) What are the risks if I only appoint 1 agent for every shipment?
5) Is it compulsory to apply a Letter of Credit for my shipment?
6) Can you pls recommend agents specialise in tobacco import? I would need help from the agent to apply any appropriate license/permits, handle all requirements and fees at the port, and arrange for goods to be transported from port to door safely.

Also invite agents/sea freight companies for Port Klang and Penang to contact me directly via email:

Many thanks.

Anh Van said...

Dear All ,

Please help me! Could you let us knoww in case HBl is wrong about consignee's name, while the vessel arrived Port Klang and Clear Custom, Now we will process revising Consignee's name on House bill ( this is LCL Shipment ), so, How will settle and how much we will pay for revising manifest?

Please help us your answer

VK said...

Hi Anh Van, you will have to pay custom penalty for any amendment to be made after vessel discharged or manifest filed + other service fees from the shipping lines and forwarding agents who get this amendment done (quite a task - have to make few trips to custom office and meeting up with custom officer and risk of losing point as for the forwarding /shipping agents license (Demerit points) . How much the penalty? Depend on custom office .

Although my reply was late , but i hope everything went well for your shipment. When such incident happened , be patient and co-operate with the agents to make proper amendment. Custom offices are always helpful, if you need to present yourself to explain the amendment .

双子吧 said...

Hi VK,

Really thank you for your information.

I got some problem can't figure out. I'm planing to import goods:
1) IMO Class: 2
2) UN number: 1950
3) HS Code: 9505100090/95059000
4) JPA Group: 3

I found some information from government website. "For dangerous goods Class 2, 3, 4, 5, 6.1, 8 ,9 no need special permit from other government agencies.". But what permit/document I should prepare for these goods? And how are the fees?

Can you please advice me from zero?

VK said...

Hi,permit requirement for importing goods are not determine only on it hazardous level. It would be on many other relevant government agencies who are directly involve in the nature of your import product. Example . Medical product - The Department of Pharmacy under the Ministry of Health(MOH), Foods and edible - MOH, Plants and vegetation- MOA (Ministry of Algri).. and so on other Ministries.

You are importing Aerosols related products.Base on the UN number 1950 .What it will discharge? EG, if paint or pesticide? it will need DOE- Department of Environment and DOA approval.
You declared your items with HS Code 9505100..and (95059000...) Article for Christmas festivities or Others. Somethings very subjective. This HS code , custom tariff ,it will not require permit but it is still subjected to the custom office final decision and acceptance on the HS Code . Your goods is not a decorative or something can be see as use for celebration. It is inside a pressure can which will discharges somethings - liquid? Gases? Be prepare it might be change to a different custom tariff - related to aerosol discharges ( So you need to have documentation on what the discharges is ) Get the approval from related government agency. More likely DOE , if it is liquid or Gases . You need to convince the custom office of your items.
My advice , get a custom broker (forwarding agent) , obtain custom advice on the correct tariff of your goods before importing .
TAKE NOTE : Dangerous goods , Port charges will be very expensive if you delayed your given free time to take out the cargo. It could come to TEN OF THOUSANDs Ringgit. No surprises . Fire Brigade standby by hour basis, port special storage area and etc.
Plan your import ( especially if this is a Dangerous Classified Goods).

双子吧 said...

Thanks VK!! I'm really appreciate for your reply!! And you are right! It's for Christmas celebration~

As you said, I just found a forwarding agent and sent him all the information. I'm now waiting for his reply. I hope I can get those permit without any problem if permit is required.

Once again, Thank you and thank you.

Unknown said...

VK - Great info and help being provided by you. We need to move on regular basis Non-Haz cargo from Ipoh-Klang-Nhava Sheva port. I need your help to have some good shipping agent and cost idea with break-up. Please share your contact details. Mine Email -

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Can i know the procedure to eksport rubber smr20 to china..shipment to qingdao port..our suplier just give a fob service to port klang..

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mc said...
This comment has been removed by the author.
mc said...

hi VK, great blog, very useful info... I need some help and perhaps your consultancy.
Can you recommend some freight forwarders in Port Klang that specialise in frozen seafood delivery from Norway? Including delivery of reefer truck to Selayang from Port Klang. Thank you.

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