Q1 : What is The LKTN Act?

A1 : National Kenaf and Tobacco Board Act 2009 [Act 692]

According to National Kenaf and Tobacco Board Act (Act 692), Cured Tobacco Movement Control (Section 52. (1) & (2))

(1) No one person shall transfer, carry, transport or participate in the transfer, carrying or transport of cured tobacco unless he has obtained written approval from the Board.

(2) Any person who contravenes subsection (1) commits an offense and may on conviction be fined not exceeding RM50,000.00 or imprisoned for a period not exceeding 1 year or both.

 

Q2 : What is the Subsidiary Legislation Under The Act?

A2 :

  1. National Tobacco and Kenaf Board Regulations 2011 (Tobacco Licensing and Tobacco Release)
  2. Regulations of the National Kenaf and Tobacco Board 2011 (Kenaf Licensing and Release of Kenaf National Kenaf and Tobacco Board Regulations 2011 (Grade and Minimum Price) (Preserved Tobacco)

 

Q3 : What are the objectives of LKTN under the act?

A3 : The objectives are:

  1. To encourage and develop the kenaf industry;
  2. To develop national objectives, policies and priorities for the development and administration of the organized kenaf industry;
  3. To regulate, control and coordinate all activities related to the tobacco industry; and
  4. To encourage and develop other economic activities for those involved in the kenaf industry and the tobacco industry.

 

Q4 : What is the function of LKTN?

A4 : LKTN is to

  1. To implement policies and development programs to ensure the viability of the kenaf industry
  2. To implement policy and regulate the tobacco industry;

 

Q5 : Who is eligible to apply for this permit?

A5 : Licensing enforcement for LKTN tobacco licenses in 2022 is for individuals/companies carrying out tobacco-related activities as stipulated in [Act 692] National Tobacco and Tobacco Board Act 2009 section 39 (1).

5 licenses implemented are:

  1. Preserving tobacco,
  2. Buying cured tobacco,
  3. Manufacturing tobacco or tobacco products,
  4. Complaining about tobacco and
  5. Distribute tobacco or tobacco products.

 

Q6 : When will the enforcement of this Regulation be held?

A6 : The enforcement of this Licensing Regulation will begin as follows;

Phase 1 — Implementation of awareness and publicity campaigns and enforcement of licensing for tobacco curing activities, buying cured tobacco, manufacturing tobacco or tobacco products and blending tobacco from January 1, 2022;

Phase 2 — Licensing of tobacco distribution or tobacco products without payment of fees from January 1, 2023; and

Phase 3 — Full enforcement with fee payment from 1 January 2024. In phase 3, licensing activities and full enforcement will be enforced involving tobacco distribution and tobacco production with a maximum fee rate of RM150 per year.

 

Q7 : Why has the enforcement of the National Kenaf And Tobacco Board (Tobacco Licensing And Tobacco Production) Regulations 2011 been delayed?

A7 : The implementation of the enforcement of the National Kenaf And Tobacco Board (Tobacco Licensing And Tobacco Production) Regulations 2011 has been administratively delayed because there are a number of issues that need to be coordinated between the LKTN and the ministry, other enforcement agencies and also interested parties in the industry tobacco (tobacco and tobacco products).

 

Q8 : What is meant by cured tobacco and tobacco products?

A8 : “cured tobacco” means tobacco that has gone through a process through which tobacco leaves or other parts of the tobacco plant are dried for the purpose of preservation and maturation, and includes heat curing, air curing, fire curing and sun curing;

“tobacco product” means cigarettes or cigars or any form of product derived from tobacco including any mixture containing tobacco intended for human consumption but excluding any medicinal product controlled under the Poisons Act 1952 [Act 366] or the Drugs and Cosmetics Control Regulations 1984 [P.U. (A) 223/1984]

lktn license

Q9 : Is a license required to carry out tobacco manufacturing activities or tobacco products from LKTN if it already has a license from another relevant agency?

A9 : Based on section 39(4) of the LKTN Act, companies that have obtained a manufacturing license under the Industrial Coordination Act 1975 [ Act 156 ] do not need a Tobacco Manufacturing or Tobacco Production license) from the LKTN.

 

Q10 : What does it mean to distribute tobacco and tobacco products?

A10 : Tobacco distribution activities and tobacco products include;

  1. Moving
  2. Transporting
  3. Transferring
  4. Sending
  5. Deliver
  6. Supply
  7. Carrying; or
  8. Saving

any output of tobacco or cigarettes of 200 sticks or more.

 

Q11 : What is the role and function of LKTN in combating illegal tobacco distribution and tobacco production activities?

A11 : LKTN completes the enforcement loophole in the value chain (value chain) at the cigarette and tobacco distribution level based on sections 39(1), 39(2), 51 and 52 of the LKTN Act and the Regulations of the National Kenaf And Tobacco Board (Tobacco Licensing And Release Tobacco) 2011.

 

Q12 : Who is the Authorized Officer (PDK)?

A12 : Under Section 54 of the LKTN Act, the Director General can in writing authorize any officer or public official to carry out enforcement powers involving licensing and enforcement activities.

 

Q13 : How much is the fee charged for applying for a license under this Regulation?

A13 : The fees charged from 2022 are as follows:

  1. Tobacco curing license (RM50)
  2. License to buy cured tobacco (Heater RM300) (others RM100)
  3. Tobacco manufacturing license (RM300)
  4. Tobacco blending license (RM150)

While the following licenses:

  1. License to distribute tobacco and tobacco products (RM150) fee is waived until 2023

 

Q14 : If the premises refuse to be licensed, what steps and actions will be taken by LKTN?

A14 : Action can be imposed under section 39(5) of the LKTN Act. If convicted, a fine not exceeding RM250,000 or imprisonment for a period not exceeding 3 years or both can be imposed.

 

TOBACCO IMPORT PERMIT

The Kenaf and National Tobacco Board (LKTN) has taken over the portfolio of administering authority for Tobacco Import Permit in accordance with the Customs (Prohibition on Import / Export) (Amendment) 2016. The LKTN agency under the Ministry of Main Industry (MPI) is responsible for processing permit applications import (AP) Raw tobacco.

 

Article source in Malay: Soalan Lazim (FAQs) Lesen LKTN

Chinese: 烟草或烟草制品分销执照常问问题 （FAQs）

 

How can I apply a license LKTN?

To find out more information about this license and license application, please contact us to understand the guidelines and conditions of the license application carefully before applying.