KUALA LUMPUR (Nov 21): Malaysia will implement the Asean framework agreement on transit goods facilitation in Peninsular Malaysia beginning next year, which will see the issuance of 500 Asean cross-border goods vehicle permits under the current framework.

The permits, which will be issued with the Land Public Transport Agency (APAD), will be available for online applications by eligible Malaysian transport operators from Jan 1 next year, the Ministry of Transport (MOT) said in a statement.

The 500 permit quota is applicable for all Asean participants under the framework, dubbed the Asean Framework Agreement on the Facilitation of Goods In Transit (AFAFGIT).

The number of permits can be increased “with the agreement by all Asean member countries if necessary,” the statement said.

AFAFGIT will facilitate the movement of goods in transit in Asean member states, in supporting the implementation of the Asean Free Trade Area (AFTA).

“For the operationalisation of AFAFGIT, the government has gazetted two subsidiary legislations, namely the Land Public Transport (International Circulation) (ASEAN Cross-Border Goods Vehicle) Regulations 2023, and the Commercial Vehicle Licensing Board (International Circulation) (ASEAN Cross-Border Goods Vehicle) Rules 2023, on Monday, Nov 20, 2023,” the MOT said.

“To support the operationalisation of the AFAFGIT, the customs authorities of the Asean member countries will use the Asean Customs Transit System (ACTS) for goods declaration and to regulate the movement of goods in transit,” it said.

The ACTS, operated by the Customs Department in the case of Malaysia, enables a single vehicle, single guarantee and single customs declaration, in order to facilitate the transit of goods among Asean members, it added.

In the case of Sabah, Sarawak and Labuan, the AFAFGIT’s operationalisation will commence “after the accession of Brunei Darussalam, Indonesia, and the Philippines into the ACTS,” the ministry said.

The AFAFGIT “is expected to boost Malaysia’s total trade, particularly with the Asean member states,” the MOT added.

“In addition, the AFAFGIT implementation will provide opportunities for local logistics companies to penetrate the Asean market and subsequently enhance the country’s productivity and competitiveness,” it added.