The Licensed Manufacturing Warehouse (LMW) scheme enables manufacturers to establish and operate their production facilities within a bonded warehouse environment. It is primarily designed for export-oriented manufacturers whose entire production, or at least 80%, is intended for export markets Unlike Free Industrial Areas that must be gazetted and located near ports, LMW factories can be set up anywhere within the Principal Customs Area — giving manufacturers more freedom to choose their factory location. Just like factories in Free Industrial Zones, LMW companies also enjoy full tax benefits — including 0% sales tax and duty-free import of raw materials, components, machinery, and equipment used in production. Two additional topics have been added to this course:

• The implementation of SMARTGPB (online application submissions)
• Product-specific rules as an alternative to address situations where the 40% Regional Value Content (RVC) formula under ATIGA is not applied for local sales.