New FCZ and Customs Regulatory

Circular from Free Zone Authority, Penang
Reference FCZ/2006/002 Dated 07 April 2006

To: All Terminal Operators/Ground Handlers and Cargo Agents Concerned

Pursuant to our Circular reference FCZ/2006/001 dated 10 February 2006 and the subsequent meetings held between FZA and PFFA, the following amendments shall be made to the operating procedures governing the new FCZ and Customs Regulatory requirements at the Penang International Airport, Bayan Lepas effective 11 April 2006.

1. ZB 1
1.1 In respect of movements of goods into the Penang FCZ by AIR irrespective from which origin, the local Cargo Agents bringing the goods into FCZ shall be responsible for the declaration of ZB 1 at the Direct and House Air Waybill level.

Note: Direct Air Waybill refers to non-consol shipments.

1.2 ZB1 is not required to be declared to the FZA for movement of goods by ROAD into the Penang FCZ at Direct and House Air Waybill level. The K2 and K8 declarations to SMK shall be used for the purpose of manifest balancing against the ZB2 declarations and the outbound Flight Manifests.
1.3 For movement of goods intended to be brought into the FCZ by ROAD and subsequently re-exported out of the FCZ by ROAD without any value-added activities, the local cargo agents are required to declare both a ZB1 and ZB2 to the FZA. If the agent intending to do a value added activity for local sales consumption then a ZB4 shall be declared to the FZA.
2. ZB 2
2.1 In respect of movements of goods out of the Penang FCZ by AIR irrespective to which destination, the local Cargo Agents taking the goods out of the FCZ shall be responsible for the declaration of ZB2 at the Direct and House Air Waybill level.
2.2 ZB2 is required to be declared to the FZA for movement of goods out of the Penang FCZ by ROAD at House Air Waybill level after value added.
2.3 ZB2 is not required to be declared to the FZA for movement of goods out of the Penang FCZ by ROAD at the Direct Air Waybill level. The K1 and K8 declarations to SMK shall be used for the purpose of manifest balancing against the ZB1 declarations and the inbound Flight Manifests.
3. ZB 3
In respect of movements of goods of "through transit" at the Free Commercial Zone of Penang International Airport with no re-documentation of Air Waybills, the ZB3 is required to be declared by the Terminal Operators/Ground Handlers to the FZA. As for transhipment goods with re-documentation of Air Waybills, the ZB1 for in-FCZ and a ZB3 for out-FCZ by air are required to be declared by the agents.
4. ZB 4
In respect of movements of goods which are deposited in the FCZ for value-added activities, the local Cargo Agents must declare ZB 4 to FZA before carrying out the value-added activities. The FZA shall only grant an approval when a ZB1 has been declared earlier. For export shipment terminated in the FCZ for any value added activity the agent shall declare ZB1 in-FCZ by road, a ZB4 (value added activity) and a ZB2 out-FCZ by air.

Note: The schedule of ZB declarations to FZA shall be issued separately and published in the FCZ Website : www.fczmalaysia.com

5. Flight Manifest
In respect of all movements of good carried on an aircraft or a truck operating under a Truck flight nbr approved by Malaysian Customs, the Terminal Operator/Ground Handlers shall submit a Manifest electronically to the Free Zone Authority on behalf of the carriers handled by them.: -
  • In the case of a vessel or aircraft arriving at the Customs Airport in the Free Commercial Zone, a true inward or transhipment manifest to be submitted.
  • In the case of vessel or aircraft leaving the Customs Airport in the Free Commercial Zone, a true outward or transhipment manifest to be submitted.
  • The Manifest shall contain all particulars as to the markings, numbers and contents of each package intended to be landed at, exported from or transhipped at the Customs Airport in the Free Zone.
  • The electronic Manifest shall be submitted in accordance to the IATA Cargo IMP ? FFM message standard and transmitted to the Free Zone system via the SITA network.
  • The effective date for the submission of electronic manifests required for the purpose of manifest balancing by FZA shall be announced at a later date.
6. FZA's Approval
Goods shall not be released, exported and transhipped at the Free Zone unless the appropriate declarations as specified under Items 1 to 5 are submitted and approved by a proper officer of the Free Zone Authority.
7. Manifest Balancing
This activity shall be computerized with a new FCZ system that will automate the processes of tracking and balancing all goods brought into or taken out of the Free Zone as declared electronically by the local Cargo Agents against the inward and outward manifests as declared electronically by the Terminal Operators/Ground Handlers.
8. FCZ Processing Fee
The FCZ processing fee payable by the Declarant shall be revised from RM 3.00 to RM 5.00 for each Direct and House Air Waybill declared to the FCZ Authority by way of the ZB declarations effective 11 April 2006. The fee payable is for the beneficial use of the commercial and security facilities provided in the Free Commercial Zone created for trade facilitation.
Notes:
  • The FCZ Processing Fee at the Air Waybill level shall be collected irrespective of whether a ZB declaration has been submitted by the Declarant concerned.
  • The fees are to paid at the point when the cargo is checked-in or taken delivery at the respective Cargo Terminals. In situations where this form of payment collection is not possible, the FZA shall invoice the Declarant who shall be required to settle the full amount within the time stipulated by the FZA.
  • The procedures on the collection of fee shall be issued separately by the FZA.
9. Electronic Channels for FCZ and Flight Manifest Declarations
9.1 Electronic ZB Declarations
  • For the electronic declarations of ZB forms, the declarants can opt to use one of the following electronic channels which are linked to the new FCZ system:-
    • The Ezycargo Community System which is currently in use by majority of the cargo agents in Malaysia engaged in carrying out e-commerce transactions with the Airlines.
    • The ZB declaration module in the new FCZ Portal (www.fczmalaysia.com.my) which will be available by May 2006. Declarants without the Ezycargo system can opt to use this web-based channel. Registration is required to use this Portal service.
    • MAS Logistics (formerly known as PKUM) has been appointed by the FZA to operate a FCZ Service counter located at the Penang Cargo Centre. The type of services and fees offered shall be announced separately by MAS Logistics.
  • Electronic Manifest Declaration

    All carriers are required to provide their inward, outward and transhipment manifest to their Ground Handling Agents who shall be responsible to provide these manifest details in the form of FFM messages transmitted to the Free Zone Authority as described in Item 5 above.

Since the cutover of our new FCZ system on 03 Apr 06, the FZA have only received a total of 169 ZB declarations as at 06 Apr 06, 2115 hrs from 11 Cargo Agents namely ACE, CTU, CTL, NNR, HNM, NVO, HNY, FRT, HIT and DMO. The ZB declarations from all these 11 Agents have been successfully processed by the system.

The FZA have trained a total of 98 Cargo Agents on how to use the new FCZ system. By this count, there are still 87 Cargo Agents who have yet to start using their system to submit electronic ZB declarations. The requirements for Cargo Agents to submit their ZB declarations now is part of our verification and certification process to ensure that the Declarants are in the state of readiness to use the new FCZ system without any problems.

In view of the current unsatisfactory state of affairs, the FZA shall impose penalties and other forms of punitive actions as stipulated in the Free Zones Act 1990 for the non-submission of ZB declarations as governed by the operating rules contained in this Circular with effect from 11 April 2006.

The Zone Authority shall reserve the right to add, amend and delete either in part or the whole content of this Circular through separate official notifications to parties concerned.

For further clarification, please contact our Free Zone Management in Penang as follows: -

Encik Che Omar Baharom
E-Mail Address : omarb@mas.com.my
Office Tel : 04-6402101

FCZ Website : www.fczmalaysia.com

Issued under the Authority of the Free Zone Management

Dato' JJ Ong
Senior General Manager
Malaysia Airlines Cargo
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