Free Commercial Zone In Port Klang
Year 1993 will be remembered for the declaration of free commercial zone status for Port Klang by the Minister of Finance. Northport was gazetted as a Free Commercial Zone on 1 April 1993, followed by Westports on 20 June 1996 and Southpoint on 19 February 2004. In line with the Free Zones Act 1990 and within the context of a FCZ, only commercial activity such as trading, breaking bulk, grading, re-packing, re-labelling and transit are allowed in Port Klang. Any form of manufacturing activity is strictly forbidden.

However, simple manufacturing processes and operation including minor assembly may be allowed, with the approval of Treasury.

• What are the activities allowed in a FCZ?
• What are the advantages of using a Free Zone?
• Documentation and Procedures
• Paperless Transactions
• Standard Operating Procedure for FCZ
• List of Gazetted Free Commercial Zones (FCZ)

Activities allowed in the Free Zone

• Transshipment
• Consolidation of cargo for subsequent shipment
• Regional distribution
• Trading activities
• Storage / deferment of duty on import cargo
• Inspection and sampling
• Value-adding
  1. Break-bulking
  2. Packing / re-packing
  3. Packaging / re-packaging
  4. Sorting / grading
  5. Labelling / re-labelling
  6. Repair of goods in storage or transit

What are the advantages of using a Free Zone?  
Advantages of using a Free Zone.

1. Duty-free Storage and Sales Tax Exemption

• Duty is eliminated on merchandise subsequently re-exported or destroyed in the zone.
• Defer duty on foreign goods until they leave the zone into the country.
• Store goods indefinitely, when awaiting either a more receptive market or more favorable sales conditions.
• Exhibit and promote your merchandise to prospective clients. Accept orders for goods before paying duty or excise tax

2. Greater flexibility

• Insure goods for just their value plus ocean freight.
• Import merchandise subject to quote and hold in the Zone until the next quote period.
• Re-label goods to conform to local standards.
• Enjoy freer access to merchandise than bonded activities allow.
• Salvage or repair damaged merchandise

3. Reduced Restriction
As a result of the Customs (Prohibition of Imports) Order 1998, many goods can now be brought into the FCZ for subsequent re-export without an import permit, allowing for greater flexibility and a wider range of goods to be traded.

Benefits:

• Lowers your cost
• Less restriction on transshipment and re-export
• Simple documentation and procedures
• Paperless transactions
• Storage, Consolidation and Regional distribution
• Staggered Importation to Principal Custom Area (PCA)
• Eliminate and deferment of duty
• Value-adding services

Documentation and Procedures
Very little documentation is required in the Free Zone so that we can provide a truly friendly business environment for you. Basically, all you need are these documents - ZB1 (Import), ZB1 (Export) and ZB1 (Transshipment) - to facilitate movement of your goods into the FCZ. Customs clearance is only for goods imported into the country from the FCZ or exported from the country into the FCZ. (Customs clearance requires a different set of forms).

Application to undertake any activity in Free Commercial Zone, e.g.: value adding, can be done through ZB4.

* Only if applicable.

The implementation of this system eliminates the possibility of logistics problems, detention charges and so on, therefore export and import operations can flow freely in the FCZ 24 hours a day.

Paperless Transactions
In a short time, all the inconveniences of dealing with port authorities, port operators, Customs, banks, shipping and forwarding agencies will be over. The introduction of the Port Klang Community System (PKCS) will be able to provide users with a more efficient and convenient service due to the following factors:

• The reduction of costly paperwork
• Faster documentation
• Shorter cargo clearance time
• Fast information on cargo status

Should you have any inquiries with regard to Free Zone, please do not hesitate to contact the following numbers:

List of Gazetted Free Commercial Zones (FCZ)