Licensed Manufacturing Warehouse (LMW) License Application
Introduction
A Licensed Manufacturing Warehouse (LMW) is a facility approved by the Royal Malaysian Customs Department under Section 65/65A of the Customs Act 1967, allowing manufacturers to operate in a designated bonded area. This license enables approved companies to import raw materials, components, and machinery without paying import duties, excise duties, and sales tax, provided the finished products are primarily meant for export.
The LMW scheme is a strategic incentive provided by the Malaysian government to promote export-oriented manufacturing activities and attract foreign and local investment.
Key Benefits of an LMW License
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Duty-Free Importation: Exemption from import duties and sales tax on raw materials, components, packaging materials, and machinery used in the manufacturing process.
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Improved Cash Flow: Companies can operate with lower upfront costs as they do not need to pay duties and taxes on materials.
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Export Focus: Encourages and facilitates export-based production and competitiveness in the global market.
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Customs Facilitation: Simplified customs procedures and improved logistics support for import and export operations.
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Long-Term License Validity: Once approved, the LMW license is valid until revoked, giving companies operational continuity.
Who Should Apply?
Any company engaged in manufacturing or processing activities with a substantial portion of their products intended for export (minimum 80%) can apply for an LMW license. This includes:
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Export-oriented manufacturers
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Foreign investors establishing manufacturing operations in Malaysia
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Companies producing goods under Free Trade Agreements (FTAs)
Requirements for LMW License Application
To apply for an LMW license, the following conditions and documents are typically required:
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Company registration under Companies Commission of Malaysia (SSM)
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A valid manufacturing license (if applicable) under the Industrial Coordination Act 1975
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Detailed business and manufacturing plan
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A physical manufacturing facility with proper layout
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Projected import and export values
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Supporting documents: tenancy agreement, site plan, machine and equipment list, raw materials list, and more
Application Process
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Preparation of Documents
Gather all supporting documents including company profile, financial forecast, production flow, and facility layout. -
Submission to Customs
Submit the complete application to the Royal Malaysian Customs Department via the local customs office where the factory is located. -
Site Inspection
Customs officers will inspect the premises to verify the details provided and ensure compliance. -
Approval & License Issuance
Upon satisfactory inspection and review, the Customs Department will issue the LMW license.
How We Can Help You
We offer full support in managing your LMW license application with professional precision:
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Eligibility assessment for LMW license
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End-to-end preparation of documentation and application forms
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Liaison with Customs authorities and handling of all submission procedures
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Factory layout advisory to meet compliance needs
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Follow-up and appeal assistance for delayed or rejected applications
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Post-approval compliance support for LMW reporting and renewals
Why Choose Us
Licensed consultants with experience in customs and regulatory compliance
Proven success in handling LMW license applications for export-based clients
Transparent and timely advisory process
Tailored support based on industry and manufacturing profile
