Import duties

The Malaysia Automotive Institute (MAI) has said that the review on the impact of the abolishment of the Open Approved Permit (Open AP) system should be completed this year, The Sun Daily reports.

“It is still under review. It (completion of the review) must be this year. It cannot be so long,” the publication quoted MAI CEO Madani Sahari as saying.

MAI is in favour of terminating the Open AP system. The system was supposed to be abolished by the end of 2015 under the National Automotive Policy (NAP) 2009.

During the presentation of NAP 2014 however, the Ministry of International Trade and Industry (MITI) said further study on the impact of the abolishment was needed before a final decision was made.

nap-2014-ap

MAI head of strategic research Asrulnizam Addrus earlier said that Open APs do not contribute to the development of the automotive industry.

He said the review on the impact of the Open AP system’s termination is being carried out by external consultants, which does not include MAI. However, MITI is aware of MAI’s position on the Open AP system, Asrulnizam said.

Open APs are responsible for the many grey-import cars from right-hand drive countries on our roads. They are distinct from Franchise APs, which are used by principal companies to officially bring in their cars.

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