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RESTRICTED CIRCULATION ONLY TO MEMBERS OF MALAYSIAN IRON AND STEEL INDUSTRY FEDERATION (COMPANY NUMBER 76350P)

Berita A Quarterly Newsletter of Malaysian Iron & Steel Industry Federation

Outreach Programme Using Duty Drawback Facility The Ministry of International Trade and Industry (MITI) in cooperation with the Royal Malaysian Customs Department (RMCD) and Malaysian Investment Development Authority (MIDA) organized an outreach programme for the importation of iron & steel products using duty drawback facility on 16 February 2016 in the Multipurpose Hall, MITI, Kuala Lumpur. About 80 representatives from industry attended the programme. En. Muhammad Razman Abu Samah, Senior Director, Sectoral Policy Division from MITI delivered a presentation on “Overview on the Policy of Iron & Steel”. MITI informed on several policy changes to the iron and steel industry as follows:

• Import duty structure for flat products

of 15% to be extended until end of 2019 and from 2020 onwards, import duties would range from 0 – 10%.

• Policy on Manufacturing License (ML) Issuance: § Maintain current policy on the

issuance of ML for new/expansion project applications subject to the condition of high technology, energy efficient and the production of higher-grade materials which does not compete with current capacity in the country;

• Improved duty exemption procedures through duty drawback facility for importation of raw materials to produce finished goods for export purposes;

• Standards for 7227: The usage of any internationally recognized standards (including Japanese Standards –JIS) for HS7227 while Malaysia develop its own standards.

• Threshold for allowing export of scrap metals reduced from 50% to 20%, subject to domestic consumption and

elimination of the 10% export duty; effective since 1 February 2016.

Pn. Patimah Zaini Raffar from Royal Malaysian Customs Department (RMCD) delivered the second presentation on “Duty Drawback Facility under Section 99 Customs Acts 1967”. The implementation date of the duty drawback facility would be on 1 April 2016. Due to the complexity in managing the duty drawback scheme for certain sectors of the industry, RMCD organized two workshops for MISIF members on “Processing of Duty Drawback Facility Under Section 99 of Customs Act 1967” on 24 & 25 March 2016 in Customs Wilayah Persekutuan Kuala Lumpur Training Room. A total 0f 73 participants attended the workshops to gain better understanding on the process and the mechanism involved when submitting their drawback claims.

Berita MISIF Committee/Editorial Committee Chairman: Mr. Pongsak Padungkarn Secretariat: Mr. Frankie Wee, Ms. Ng Mor Kiang Published by: Malaysian Iron & Steel Industry Federation No 28 & 30E, 5th Floor, Block 2, Worldwide Business Park Jalan Tinju 13/50, Section 13, 40675 Shah Alam, Selangor, Malaysia Phone: 603-55133970 Fax: 603-55133891 Website: www.misif.org.my Email: enquiry@misif.org.my Artwork and Design by MISIF Any materials extracted from Berita MISIF to be quoted or reprinted should contain an acknowledgement to MISIF or its acknowledged source. No Permit: PP16672/10/2012 (030924)

In this Issue Outreach Programme Using Duty Drawback Facility 1-2 MISIF Meets MOF and RMCD 2 SIRIM Rasa Industry Networking 2016 2 Cold Rollers Meet TSIIA 3 Trade Talk at MATRADE 3 Northern Region Branch Holds Workshop 3 MISIF/SEAISI Seminar on Management Tools for Operational Excellence 3-4 Pre-Determination of AD Investigation on CRC 4 Final Determination of AD Duty on PPCCSC 4 Forthcoming Events 4 MISIF 36th AGM Announcement 4

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MISIF Meets MOF and RMCD YB Datuk Chua Tee Yong, Deputy Finance Minister I, chaired a meeting on 2 March 2016 between representatives from MISIF and the Directors from Royal Malaysian Customs Department (RMCD) with regard to the two-week industry-wide operations by the authorities on steel-related companies which started on 23 February 2016. The MISIF delegation was led by its President, Dato’ Soh Thian Lai, while Dato’ Sri Khazali Hj Ahmad, Director General, headed the team from the Customs Department. Dato’ Soh stated that MISIF members were committed and would provide full cooperation to facilitate the authorities in carrying out their tasks. The Customs Department appreciated the commitment by the industry and would work closely with the Federation to minimise disruption to the industry. On a related matter, MISIF, in collaboration with M/S Lee Hishammuddin Allen & Gledhill, conducted a briefing session on “Customs, National Revenue Recovery Enforcement Team (NRRET) & Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLTFPUA) and the Steel Industry” on 24 March 2016 in MISIF office. The briefing was conducted by En. Rosli Dahlan, a partner with M/S Lee Hishammuddin Allen & Gledhill. En. Rosli covered wide-ranging matters, including: • Press reports: Recent enforcement

actions by the National Revenue

Recovery Enforcement Team (“NRRET”) led by RMCD;

• Enforcement by Customs & Police officers: Customs Act (“CA”); the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (“AMLTFPUA”);

• Seizure/Freezing Orders: Procedure, removal and expiry under CA and AMLTFPUA;

• Interaction with Enforcement Agencies: SOPs;

• Manufacturing issues: importation of dutiable/un-dutiable raw materials in Principal Custom Areas (PCA); Free Zone (FZ), Licensed Manufacturing Warehouse (LMW); Offences; Prosecution and Punishment. SIRIM Rasa Industry Networking 2016

SIRIM Berhad organized a SIRIM Rasa Industry Networking session on 9 March 2016 at its premise in Rasa Industrial Park, Hulu Selangor.

The session attracted very good response with nearly 130 participants (mainly SME companies) and the strong presence of at least ten industry and related associations and federations, including MISIF. Among the notable senior officials present were Tan Sri Dr. Ir. Ahmad Tajuddin Ali, FASc., Chairman of the SIRIM Board of Directors, Dato’ Dr. Ir. Andy Seo, Member of the SIRIM Board of Directors, Tan Sri Dato’ Soong Siew Hoong, MISIF Honorary Past President, Ir. Dr. Mohamad Jamil Sulaiman, Vice President, SIRIM Research & Technology Innovation Division and Ir. A K Woo, MISIF Council Member & Chairman of the Green Technology Committee. The programme of the half-day event included the viewing of the SIRIM Berhad corporate video, welcoming remarks by Tan Sri Dr. Ir. Ahmad Tajuddin Ali, presentation by the SIRIM Machinery Technology Centre, tour of the facilities in SIRIM Rasa and a dialogue session chaired by Dato’ Dr. Ir. Andy Seo. Through this networking session, SIRIM

hoped that the activities at the SIRIM Rasa Industrial Park could be rejuvenated and that industry players were more aware and would take advantage of the numerous facilities and capabilities available at the SIRIM Machinery Technology Centre.

Dato’ Soh Thian Lai stressing a point to Datuk Chua Tee Yong during the dialogue session.

Some of the participants at the function with SIRIM senior officials.

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Cold Rollers Meet TSIIA An eight member delegation from the Taiwan Steel and Iron Industries Association (TSIIA) paid a courtesy call to the MISIF CRC Group on 28 January 2016 in MISIF office. MISIF President, Dato’ Soh Thian Lai was there to welcome the delegation led by Mr. Paul Huang Tsong-Ying, TSIIA Director and the Managing Director of CSC Steel Malaysia from 2001 – 2006. Both sides exchanged information on the cold rolled market and discussed the way forward for both organizations to work together.

Trade Talk at MATRADE Malaysia Steel institute (MSI) held a briefing session for the iron and steel industry on “Trans-Pacific Partnership Agreement (TPPA) and Exploring Export Opportunities Overseas” on 25 February 2016 at MATRADE, Kuala Lumpur. Participants were honoured with the presence of YB Dato’ Seri Ong Ka Chuan, Minister II of Ministry of International Trade and Industry (MITI), who delivered the inaugural address at the session. En. Syahril Syazli Ghazali, Senior Principal Assistant Director of Strategic Negotiations Division, MITI delivered the first presentation on “Trans-Pacific Partnership Agreement (TPPA) – What it means to Iron & Steel Sector”. En. Syahril presented an overview on TPPA – the background and

status, market access negotiations – opportunities and challenges and Rules of Origin (ROO) and procedures. Pn. Yuslinawati Mohd Yusof, Deputy Director of Construction and Related Services & Building Materials Unit, MATRADE gave a presentation on “Exploring Export Opportunities Overseas – Trade Mission”. Pn. Yuslinawati’s presentation highlighted on trade performance of building materials in 2015, trade performance of metal, iron and steel in 2015, market opportunities, promotion activities for building materials & construction and assistance programme for exporters. Also included in the programme was the viewing of a recorded Video Conference with MATRADE Myanmar. Northern Region Branch Holds Workshop The Northern Region Branch of MISIF held a workshop on “Free Trade Agreements (FTAs) and the Importance of Rules of Origin (ROO)” on 1 March 2016 at Superinox Pipe Industry Sdn Bhd, Penang. En. Azmir Musyabri Abdul Mutalib, Director of MITI Penang delivered the presentation. En. Azmir’s presentation on FTA covered the latest updates on FTAs, Malaysia’s FTAs Involvement, and Benefits of FTA and for Rules of Origin (ROO), he explained the importance of Rules of Origin, Harmonised System of Tariff Classification (HS), Origin Criteria and Application Procedures. The objective of this workshop was to guide the private sector on the benefits of Free Trade Agreements where participants were guided on how to fully utilize the FTAs to

gain a competitive edge. About 40 representatives from steel related companies in Penang attended the workshop. MISIF/SEAISI Seminar on Management Tools for Operational Excellence South East Asia Iron and Steel Institute (SEAISI) collaborated with the national committees (MISIF in Malaysia) across the ASEAN region to organize a series of seminars in the month of March. In Malaysia, MISIF hosted the seminar on “Management Tools for Operational Excellence” on 21 March 2016 in the MISIF Training Room, Shah Alam, Selangor for 23 participants. To help companies achieved operational excellence, the seminar provided some guided strategy on the management philosophy that focused on the application of a variety of principles, systems and tools for sustainable improvement throughout the organization. Hence, it was hoped to assist companies to lower cost, increased efficiencies, and reduced injuries, maximize returns in operating assets, and an enhanced competitive position. The topics/speakers were as follows: • “Drivers of Operational Excellence” by

Mr. Abud Alnatour, Onesteel, Australia;

Dato’ Soh Thian Lai presenting a memento on behalf of MISIF to Mr. Paul Huang. Seen is MISIF Deputy President, En. Azlan Abdullah.

Participants at the briefing session in MATRADE.

Dato’ Steven Siah Kok Poay, Chairman of MISIF Northern Region Branch and President of Tatt Giap Steel Centre Sdn Bhd presenting a memento to En. Azmir Musyabri

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• “Steel as an Eco-Material” by Dr. Kenichiro Fujimoto, Nippon Steel and Sumitomo Metal Corporation, Japan.

• “Introduction of POSCO Innovation and Visual Planning” by Ms. Park Kyounghee, POSCO, South Korea;

• “The Tools Applied to Production Quality Improvement and Management” by Mr. Kuo Huei Chen, Walsin Lihwa Co., Taiwan. Pre-Determination of AD Investigation on CRC

On 27 August 2015, the Government of Malaysia initiated an anti-dumping investigation based on a petition filed by CSC Steel Sdn. Bhd. on behalf of the domestic industry producing Cold Rolled Coils of Alloy and Non-Alloy Steel (CRC). The Government of Malaysia had decided to impose a provisional measure, which shall be in the form of provisional anti-dumping duties guaranteed by a security equivalent to the amount of the dumping margin determined in the preliminary investigation. Provisional anti-dumping duties ranging from 4.58% to 23.78% would be applied on imports from the alleged countries and shall be effective not more than 120 days from 25 January 2016. Based on the findings of the investigation, a final determination would be made no later than 23 May 2016. Final Determination of AD Duty on PPCCSC On 28 April 2015, the Government if Malaysia initiated an anti-dumping investigation based on the petition filed by FIW Steel Sdn. Bhd., on behalf of the domestic industry producing Pre-

Painted/Painted or Colour Coated Steel Coils (PPCCSC). The petitioner alleged that imports of PPCCSC originating in, or exported from The People’ Republic of China and Socialist Republic of Viet Nam were being imported into Malaysia at a price lower that the selling price in the domestic market of the alleged countries. The petitioner claimed that this was causing material injury to the domestic industry in Malaysia producing the like product. The Government had conducted and completed a detailed investigation on producers and importers in Malaysia as well as producers/exporters from the alleged countries in accordance with the Countervailing and Anti-dumping Duties Act, 1993. The final affirmative anti-dumping duties imposed on imports of PPCCSC from the People's Republic of China and Socialist Republic of Vietnam were as follows:

The Royal Malaysian Customs would enforce the collection of anti-dumping duties and

this measure was effected for five (5) years, from 24 January 2016 to 23 January 2021. With the imposition of anti-dumping duties on imports of PPCCSC from the alleged countries, it was expected that the issue of unfair trade practices would be addressed.

People’s Republic of China

All Producers/Exporters 52.10%

Socialist Republic of Vietnam

Maruichi Sun Steel Joint Stock Company

12.06%

NS BlueScope Vietnam Limited

34.85%

Other Producers/Exporters 34.85%

Nam Kim Steel Joint Stock Company

NIL

Forthcoming MISIF Events Training Course on Metal Forming and Sheet Metal Working Date: 25-26 April 2016 Venue: MISIF Training Room Shah Alam, Selangor Time: 9.00 a.m. – 5.30 p.m.

MISIF 12th Conference on Status & Outlook of the Malaysian Iron and Steel Industry Date: 13 October 2016 Venue: Sunway Resort Hotel & Spa, Bandar Sunway, Petaling Jaya, Selangor Time: 9.00 am - 5.00 p.m

MISIF 35th Anniversary Dinner Date: 13 October 2016 Venue: Sunway Resort Hotel & Spa, Bandar Sunway, Petaling Jaya, Selangor Time: 7.00 p.m Kindly contact the MISIF Secretariat at 603-55133970 or email to enquiry@misif.org.my for further details.

Participants of the 2016 MISIF/SEAISI seminar

MISIF 36TH AGM ANNOUNCEMENT

We are pleased to inform that the MISIF 36th Annual General Meeting will be held on 15 June 2016 at 12.00 pm in the MISIF Training Room, No 30E, 5th Floor, Block 2, Worldwide Business Park, Jalan Tinju 13/50, Section 13, 40675 Shah Alam, Selangor.

All Members are Welcomed.