Another plea to relax the curbs
Published on: Sunday, July 10, 2016
Labuan: Labuan Indian Chamber of Commerce and Industry (LICCI) laments that despite the pleadings, import of electrical appliances from foreign countries continues to be plagued by "hassles and red tape" and that if these frustrations are not removed, it would hurt the island's development as a major shopping destination.LICCI Sec-Gen Tan Sri Ram Paidithali said many manufacturers/suppliers of branded goods had relocated operations to Indonesia, Thailand and Cambodia."Traders here are finding it difficult to source products from these suppliers, which are cheaper by 15 or more per cent, and would be an attractive buy here for tourists and others but there are various unnecessary import requirements."
ADVERTISEMENT
He said his company had been offered by an Indonesian manufacturer of electrical goods to stockpile supplies here as Labuan is ideal for its duty-free status and the stockpiled goods could be sold locally and even to other Malaysian ports in smaller quantities."This is viable business but we are unable to tap the opportunities due to lack of support from government agencies," he said.Ram suggested that in order for Labuan to prosper as a shopping destination, serious action should be taken by all agencies to address Labuan's concerns, including reviewing some existing Acts applied to Labuan's imports.He noted that under the Customs Act 1967, Labuan is a 100 per cent free port with special status but nothing much is felt by the local business community. Many goods imported had to be cleared by various agencies and the goods included not only electrical but also food products.
ADVERTISEMENT
"Without the necessary support, it would be difficult for the island, despite it enjoying duty-free status, to go far in the tourism industry."Asked on the import obstacles in his electrical business, Ram explained that all such goods, even imported from Asean countries despite having various trade agreements, had to obtain import approval from the Standards and Industrial Research Institute (Sirim) and Energy Commission.
ADVERTISEMENT
After various meetings, it was agreed in April 2014 that all applications for import approval would be granted within 72 hours if made online. But after a few months, it was the same old story with having to get approval from the Commission in Putrajaya and this took two or three months. "How are we to do import business?" asked Ram.Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
