The objective of the incentives is to encourage and assist both manufacturers and traders, who are currently exporting as well as those who are export ready, in undertaking promotional activities for the development of export market. The incentives also provide assistance to companies to enhance/upgrade their manufacturing capabilities.
"We are a Malaysian registered company that manufactures and exports rubber products. However, we are a 100% Japanese-owned company. Are we eligible to claim for the incentives offered by MREPC?"
A company is eligible to apply for MREPC incentives if it meets the following criteria:
Malaysian registered companies incorporated under the Companies Act 1965;
Manufacturers and/or traders/exporters of rubber products subject to the rubber product export cess.
"Our company participates in more than 12 international trade exhibitions annually on our own initiative. Are we eligible to claim for ALL of our international trade exhibitions' participation?"
As provided by MREPC under SBIM2 incentive (Incentive for Companies Participating in International Trade Exhibitions), claims are limited to participation in four (4) international trade exhibitions per company per year.
"Our company will be participating in an international trade exhibition on our own initiative. The payment to the fair organizer for our company's participation will be remitted by our marketing subsidiary in Singapore. Are we eligible to claim for our international trade show participation?"
Yes, companies participating in international trade shows on their own initiative may claim under MREPC's SBIM2 incentive package provided the fascia board and the name listed in the trade show directory is that of the Malaysian company.
Under SBIM1 (Incentive for Participation in MREPC-coordinated International Trade Exhibitions), why does the percentage claimable for booth cost decreases as the number of participation increases?
The intention is to encourage companies to gradually become self-reliant following their participation under MREPC's umbrella in international trade exhibitions. Companies are also encouraged to identify other means of expanding export markets aside from participations in international trade exhibitions.
How long will it take for the incentive application to be approved?
Approval of the application will take approximately two weeks, provided all documents are in order.
What are the documents required for claims application?
Original invoices and receipts
Original bank statements/credit card statements/telegraphic transfers
Duplicate copies of these documents must be certified by external auditors and computer-generated receipts must be endorsed and certified by the company that issued the receipts.
What is the exchange rate used for the purposes of making claims?
MREPC uses the official exchange rate published by Accountant's General Department for the month of the trade exhibition, irrespective of date of payment or claim.
What is ISO Guide 65?
ISO Guide 65 specifies the general requirements for third-party operating a product certification system. The following are description of third-party certification systems:
System No. 1 - Type testing
System No. 2 - Type testing followed by subsequent surveillance through audit testing of samples purchased on the open market
System No. 3 - Type testing followed by subsequent surveillance through audit testing of factory samples
System No. 4 - Type testing followed by subsequent surveillance through audit testing of samples from both the open market and the factory
System No. 5 - Type testing and assessment of factory quality control and its acceptance followed by surveillance that takes into account the audit of factory quality control and the testing of samples from the factory and the open market
System No. 6 - Batch testing
System No. 7 - 100% testing
What is product certification?
Product certification is the process of certifying that a certain product has passed:
performance and quality assurance tests; or
qualification requirements stipulated in regulations and nationally accredited test standards; or
that it complies with a set of regulations governing quality and minimum performance requirements
The attainment of product certification attests that the product meets quality requirements of the specified standard or specification. It provides the consumer an assurance of performance, safety and reliability. It also demonstrates that the manufacturer has an effective system for managing its production processes. Attaining product certification is voluntary for most products. However, government regulatory authorities may require mandatory certification for certain products.
Does MREPC covers ALL expenses leading to product certification under SBIM4 (Incentive for Attainment of Internationally Recognised Product Certification) incentive?
MREPC covers expenses for tests that passed and fulfilled the requirements for certification only. Expenses for tests giving results which fail to meet the requirements for certification are not claimable.
What is ISO17025 accreditation? If our company's lab will be audited and assessed by United Kingdom Accreditation Service (UKAS), are we eligible to claim under SBIM7 (Incentive for Accreditation of Laboratories)?
ISO 17025 is an International Standard (published by the International Organization for Standardization) that specifies the general requirements for the competence to carry out tests and/or calibrations in laboratories. It contains 15 management requirements and 10 technical requirements which outline what a laboratory must do to become accredited.
A company may secure the services of any body that assesses and accredits laboratories in accordance with the requirements of BS EN ISO/IEC 17025.
Is value-added tax (VAT) and goods and services tax (GST) claimable under MREPC incentives?
VAT and GST are not claimable under the incentive package.
What does it mean by "...accommodation cost, subject to a maximum of RM500 per night..."?
Companies participating in international trade exhibitions and MREPC-organised marketing missions/specialised missions/working visits may claim for accommodation cost, up to a maximum of RM500 per night for two persons for the duration of the activity plus one night before and one night after (Please refer to FAQ #14 for calculation).
How is the incentives claim calculated?
Example for SBIM2:
Company XYZ Sdn Bhd is participating in TUV 2009 exhibition, held in Hanoi, Viet-Nam from 28-30 December 2009 (3 days). Exchange rate used is 1USD = RM3.6493. (Please refer to FAQ #8). Calculations are as follows:
