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Malaysia Airports (Sepang) Sdn Bhd
Malaysia Airports (Sepang) Sdn Bhd (the subsidiary of Malaysia Airports Holding Berhad) was appointed as the Free Zone
Authority at KLIA on August 1997. The Zone Authority is legally binding under two Acts namely Free Zone Act 1990 and Free Zone Regulation Act 1991. Apart from that Customs Act 1997 also applied.
With the mandate given by the government, as a Free Zone Authority, Malaysia Airports is obligated to perform 2 major roles which are revenue protection and trade facilitation.
1.0 Revenue protection
In order to fulfil the revenue protection role, following are the steps taken by Malaysia Airports.
1.1) Manifest Balancing
One of the vital roles of being the Free Zone Authority is to do manifest balancing as stated in Free Zone Act under Section 20
sub section 1 (b). The manifest of each in coming goods by flight will be matched with the outgoing goods. This will ensure no smuggling activities happened at KLIA.
1.2) FCZ Security Secretariat Committee
Malaysia Airports has formed FCZ Security Secretariat Committee to monitor and oversee the security aspects at the whole
Zone. The members of this committee consist of Landside security, Airport Police, Customs, Related Government Agencies, Pos Malaysia, MAS and KLAS.
2.0 Trade facilitation
Following are the actions taken by Malaysia Airports in order to fulfil the role of trade facilitation.
2.1) KLIA cargo facilitation Committee
Malaysia Airports has formed KLIA Cargo Facilitation Committee on October 2000. The objective of the Committee is to
facilitate the cargo operation at KLIA and as an information channel to convey messages.
2.2) Paperless Environment
Malaysia Airports is implementing the paperless environment concept. Through this implementation all declaration and
submission is 100% electronic. This will simplify the trade procedure where customers can submit the declaration directly from their office instead of coming to our office for hard copy validation.
2.3) Handling capabilities
FCZ has immediate capacity to handle 675 metric tonnes of cargo annually and the zone has available facilities to expand to 1.2
million metric tonnes. All facilities such as agent warehouses and cargo handling facilities are controlled by terminal operators which are MAS and KLAS.
2.4) Value added activities
A new version has been set for cargo activities at the FCZ. Besides supporting the usual activities at a Zone of this nature, the
focus is on adding value to these activities, whilst enhancing the efficiency and proficiency of related operations. The value added
activities are trading, break bulking, grading, sorting, re-packing and re-labelling. This is to accommodate greater transhipment
volume and to build the FCZ at KLIA into regional transhipment and distribution hub. Considering its ideal location at the centre
of ASEAN region, the advanced facilities existent and scope for growth in view of greater trade liberalisation, the Malaysian government is strongly supporting and encouraging the move in this direction.
2.5) One Stop Centre
In order to facilitate and expedite the process of the cargo clearance related agencies are place in one stop centre. Agencies that
occupy in One stop centre are Royal Customs and Excise Department, Free Zone Authority, Agriculture Department, Veterinary, Fisheries, Health, Pharmacy, KDN, Dagang Net and PERHILITAN.
2.6) Other support services
Additional support services and facilities are those located at Southern Community Amenities Facility (SCAF) which offers
multi-banking services, clinics, food & beverage and also postal services.
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