PRIMAGE ENGINEERING SDN BHD

(Company No: 964075-D)

GST No: 001373061120
Suite A-9-03, 9th Floor, Capital 1,
Oasis Square, 2, Jalan PJU 1A/7A,
Oasis Damansara, 47301 Petaling Jaya,
Selangor Darul Ehsan, Malaysia.
Tel: +603 7832 6055 / 7055
Fax: +603 7832 5055

22 April 2015
Pejabat Jabatan Kastam Diraja Malaysia,
Bahagian GST,
Wisma Tulus, Persiaran Perdana Presint 3,
62592 WP Putrajaya.

Attn. to: Mr. Chan / Tuan Sabri,

Dear Mr. Chan / Tuan Sabri,

GST IMPLICATION ON DROP SHIPMENT WITH INCOTERM DAP

With reference to the above, we have a few shipments sold to our clients in Malaysia with the
Incoterm DAP. Based on my meeting with Tuan Sabri and Puan Rofiza on Monday, as per
their advice certain shipments under the Incoterm DAP that are delivered to FCZ area are
classified as Relieve Supply (RS) with zero rates.
However we would like to seek your clarification on the DAP Shipments that are not delivered
into FCZ Area. These shipments are consigned to our Local Buyer who will be paying the 6%
GST at the time of declaration. As such can we be exempted from charging GST as the 6%
GST has already been paid by the consignee, in this case our client?
Secondly, in the following scenario:Supply of Material from Italy to Malaysia incoterm
DAP Kuala Lumpur

Cortem
Primage

Persada

MMHE

PBJV

1.
2.
3.
4.
5.

MMHE (LB) Ultimate Buyer issues PO to PBJV

PBJV (LC1) issues the PO to Persada
Persada (LC2) issues the PO to Primage
Primage (LC3) issues the PO to Cortem
Cortem (OS) is the manufacturer located in Italy

Cortem delivers the goods directly to MMHE.

Goods are consigned to MMHE
Notify Party is PBJV
All POs are with the term DAP KL

1. Since the goods are consigned to MMHE who will be paying the 6% GST, can all the
other companies (PBJV, Persada & Primage) use the Tax Code OP?
2. The import declaration will be in the name of the LB however the value of the imported
goods must be based on which Local Invoice (LC1 or LC2 or LC3)?