Strategic items
(1) The Minister may, by order published in the Gazette, prescribe any items as strategic items for the purposes of this Act. (2) If any question arises as to whether any item is or is not included in a class of items appearing in an order made under subsection (1), such question shall be decided by the Controller.
Restricted and prohibited end-users
(1) The Minister may designate an end-user to be a restricted end-user for which a special permit is required under this Act. (2) The Minister may designate an end-user to be a prohibited end-user to which all export, transhipment or transit of strategic items or unlisted items under this Act are prohibited. (3) A list of the restricted end-users and prohibited end-users shall be published by order in the Gazette, and the Minister may amend the list from time to time.
Export, transhipment and transit of strategic items and unlisted items
(1) No person shall export, tranship or bring in transit strategic items unless he obtains a permit issued under this Act. (2) No person shall export, tranship or bring in transit strategic items or unlisted items to a restricted end-user specified in subsection 8(1) unless he obtains a special permit issued under this Act. (3) No person shall export, tranship or bring in transit strategic items or unlisted items to a prohibited end-user specified in subsection 8(2). (4) A person who contravenes subsection (1) commits an offence and shall, on conviction— (a) in relation to strategic items which are arms or related material— (i) where the act is done with the intent to unlawfully export, tranship or bring in transit such strategic items without a permit or with knowledge that the export, transhipment or bringing in transit of such strategic items without a permit is unlawful— (A) where death is the result of the act, be punished with death or imprisonment for a term of not less than thirty years but not exceeding forty years, and in the case of a body corporate, be punished with a minimum fine of thirty million ringgit; or (B) in any other case, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or (ii) where the act is done without the intent to unlawfully export, tranship or bring in transit such strategic items without a permit or without knowledge that the export, transhipment or bringing in transit of such strategic items without a permit is unlawful, be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit; and (b) in relation to strategic items other than arms or related material— (i) where the act is done with the intent to unlawfully export, tranship or bring in transit such strategic items without a permit or with knowledge that the export, transhipment or bringing in transit of such strategic items without a permit is unlawful, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or (ii) where the act is done without the intent to unlawfully export, tranship or bring in transit such strategic items without a permit or without knowledge that the export, transhipment or bringing in transit of such strategic items without a permit is unlawful, be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit. (5) A person who contravenes subsection (2) commits an offence and shall, on conviction— (a) in relation to strategic items or unlisted items which are arms or related material— (i) where the act is done with the intent to unlawfully export, tranship or bring in transit such items without a special permit or with knowledge that the export, transhipment or bringing in transit of such items without a special permit is unlawful— (A) where death is the result of the act, be punished with death or imprisonment for a term of not less than thirty years but not exceeding forty years, and in the case of a body corporate, be punished with a minimum fine of thirty million ringgit; or (B) in any other case, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or (ii) where the act is done without the intent to unlawfully export, tranship or bring in transit such items without a special permit or without knowledge that the export, transhipment or bringing in transit of such items without a special permit is unlawful, be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit; and (b) in relation to strategic items and unlisted items other than arms or related material — (i) where the act is done with the intent to unlawfully export, tranship or bring in transit such items without a special permit or with knowledge that the export, transhipment or bringing in transit of such items without a special permit is unlawful, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or (ii) where the act is done without the intent to unlawfully export, tranship or bring in transit such items without a special permit or without knowledge that the export, transhipment or bringing in transit of such items without a special permit is unlawful, be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit. (6) A person who contravenes subsection (3) commits an offence and shall, on conviction— (a) in relation to strategic items or unlisted items which are arms or related material— (i) where the act is done with the intent to unlawfully export, tranship or bring in transit such items or with knowledge that the export, transhipment or bringing in transit of such items is unlawful— (A) where death is the result of the act, be punished with death or imprisonment for a term of not less than thirty years but not exceeding forty years, and in the case of a body corporate, be punished with a minimum fine of thirty million ringgit; or (B) in any other case, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or (ii) where the act is done without the intent to unlawfully export, tranship or bring in transit such items or without knowledge that the export, transhipment or bringing in transit of such items is unlawful, be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit; and (b) in relation to strategic items and unlisted items other than arms or related material— (i) where the act is done with the intent to unlawfully export, tranship or bring in transit such items or with knowledge that the export, transhipment or bringing in transit of such items is unlawful, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or (ii) where the act is done without the intent to unlawfully export, tranship or bring in transit such items or without knowledge that the export, transhipment or bringing in transit of such items is unlawful, be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit. (7) This section shall not apply to the export of any document in which any strategic technology is recorded, stored or embodied, or to the transmission of such strategic technology, to the extent that the export or transmission is necessary to facilitate— (a) the installation, operation, maintenance or repair of any items which have been exported; (b) an application for a patent; or (c) a research in such strategic technology, the results of which have no practical application.
Provision of technical assistance
(1) No person shall provide any technical assistance within or outside Malaysia if such technical assistance is intended for use in connection with a restricted activity. (2) A person who contravenes subsection (1) commits an offence and shall, on conviction — (a) where death is the result of the act, be punished with death or imprisonment for a term of not less than thirty years but not exceeding forty years, and in the case of a body corporate, be punished with a minimum fine of thirty million ringgit; or (b) in any other case, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit.
Brokering of strategic items
(1) No person shall carry out an act of brokering of any strategic items unless he is registered under section 19, and where required under the related laws, holds a valid permit for the brokering of such strategic items from the relevant Authority under the related laws where — (a) he has been notified by the relevant Authority or an authorized officer that such strategic items may be intended or are likely to be used, wholly or in part, for or in connection with a restricted activity; (b) he knows that such strategic items are intended to be used, wholly or in part, for or in connection with a restricted activity; or (c) he has reasonable grounds to suspect that such strategic items are intended or are likely to be used, wholly or in part, for or in connection with a restricted activity. (2) A person who contravenes subsection (1) commits an offence and shall, on conviction— (a) in relation to strategic items which are arms or related material— (i) where death is the result of the act, be punished with death or imprisonment for a term of not less than thirty years but not exceeding forty years, and in the case of a body corporate, be punished with a minimum fine of thirty million ringgit; or (ii) in any other case, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit, or (b) in relation to strategic items other than arms or related material, be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit. (3) In any proceedings for an offence in respect of any strategic items referred to in paragraph (1)(c), it shall be a defence for the accused to prove that he has made all reasonable inquiries as to the use or proposed use of the items and is satisfied from such inquiries that the items will not be used for or in connection with a restricted activity. (4) In relation to strategic items, subsection (1) shall not apply to any person whose sole involvement is the provision of the following ancillary services: (a) transportation; (b) financial services; (c) insurance or re-insurance; (d) general advertisement; or (e) any other ancillary services as determined by the Controller.
Transactions involving unlisted items and restricted activities
(1) If a person is informed by the relevant Authority or otherwise knows or has reason to believe that any unlisted item will or may be used for a restricted activity, then the person shall notify the relevant Authority of his intention to export, tranship or bring in transit that unlisted item at least thirty days before that export, transhipment or bringing in transit is to be carried out. (2) Upon such notification, the relevant Authority shall decide whether or not to allow that export, transhipment or bringing in transit to proceed. (3) The relevant Authority may decide to allow that export, transhipment or bringing in transit to proceed subject to the granting of a permit under this Act. (4) A person who contravenes subsection (1) commits an offence and shall, on conviction— (a) in relation to unlisted items which are arms or related material— (i) where the act is done with the intent to unlawfully export, tranship or bring in transit such unlisted items without a permit or with knowledge that the export, transhipment or bringing in transit of such unlisted items without a permit is unlawful— (A) where death is the result of the act, be punished with death or imprisonment for a term of not less than thirty years but not exceeding forty years, and in the case of a body corporate, be punished with a minimum fine of thirty million ringgit; or (B) in any other case, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or (ii) where the act is done without the intent to unlawfully export, tranship or bring in transit such unlisted items without a permit or without knowledge that the export, transhipment or bringing in transit of such unlisted items without a permit is unlawful, be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit; and (b) in relation to unlisted items other than arms or related material— (i) where the act is done with the intent to unlawfully export, tranship or bring in transit such unlisted items without a permit or with knowledge that the export, transhipment or bringing in transit of such unlisted items without a permit is unlawful, be punished with imprisonment for a term not exceeding ten years or with a fine not exceeding ten million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding twenty million ringgit; or (ii) where the act is done without the intent to unlawfully export, tranship or bring in transit such unlisted items without a permit or without knowledge that the export, transhipment or bringing in transit of such unlisted items without a permit is unlawful, be punished with imprisonment for a term not exceeding five years or with a fine not exceeding five million ringgit or with both, and in the case of a body corporate, be punished with a fine not exceeding ten million ringgit.
Presumption as to export
(1) In relation to export, any items, strategic items or unlisted items shall be deemed to be taken or caused to be taken out of Malaysia if such items— (a) have been cleared by a proper officer of customs at the last customs station on their route out of Malaysia; (b) have been loaded on to a conveyance which is about to depart from a port or place in Malaysia; or (c) have been cleared by a proper officer of customs at an inland clearance depot or at an inland customs station on their route out of Malaysia through a customs port or airport. (2) In this section, “customs airport”, “customs port”, “inland clearance depot” and “proper officer of customs” shall have the same meaning assigned to it in the Customs Act 1967 [Act 235].
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Text as at 4 July 2023 (LOM reprint); amendments made after that date may not be incorporated. Read the official text ↗
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).