Customs in Malaysia

Overview by Globlatrade.net:

Customs Procedures

Import Procedures
The Customs classification of goods is based on the International Nomenclature of the Harmonised System. A majority of Customs duties are calculated ad valorem and are specific only in certain cases. Imported goods, except for machinery, its parts and components, are subject to a sales tax which varies between 5 and 10%. In recent years, duties have dropped and now fluctuate between 15 and 25%. However, certain sectors can be taxed up to 30%. The Customs tariff is high when the imported product is also locally produced (from 30 to 50 %).
In January 1996, Malaysia, within the ASEAN market, subscribed to the Common Effective Preferential Tariffs (CEPT) arrangements, which significantly increase the product list of the previous Preferential Trading Arrangements (PTA). The introduction of the CEPT is meant to accelerate the establishment of a free trade zone within ASEAN countries (AFTA - ASEAN Free Trade Area). Before 2003, all products integrated into the CEPT, will undergo a duty from 0 to 5%. Non-taxed farm products remain outside the agreement. There is currently a list of temporary exclusion for some products, in force until January 1, 2000.
Malaysia benefits from the Generalised System of Preferences, under which 14% of its exports are carried out.
Specific Import Procedures
Authorizations are necessary to import the following products: meat, eggs, milk, wine, plants, cosmetics, pharmaceuticals, firearms, explosives, medicines and dangerous products. Meats, processed meat products, poultry, eggs and egg products must have a halal certificate from the Department of Islamic Development of Malaysia (JAKIM).
Importing Samples
Textile samples must be cut or stamped "commercial sample" and there must not be more than three of them.
 

Customs Duties and Taxes on Imports

Average Customs Duty (Excluding Agricultural Products)
8.56%
Products Having a Higher Customs Tariff
The highest rate is 250% of the CIF value.
Preferential Rates
The Customs classification of goods is based on the International Nomenclature of the Harmonised System. A majority of Customs duties are calculated ad valorem and are specific only in certain cases. Imported goods, except for machinery, its parts and components, are subject to a sales tax which varies between 5 to 10%. In recent years, duties have dropped and now fluctuate between 15 and 25%. However certain sectors can be taxed up to 30%. The Customs tariff is high when the imported product is also locally produced (from 30 to 50 %).
In January 1996, Malaysia, within the ASEAN market, subscribed to the Common Effective Preferential Tariffs (CEPT) arrangements, which significantly increase the products list of the previous Preferential Trading Arrangements (PTA). The introduction of the CEPT is meant to accelerate the establishment of a free trade zone within ASEAN countries (AFTA - ASEAN Free Trade Area). Before 2003, all products integrated into the CEPT, will undergo a duty from 0 to 5%. Non-taxed farm products remain outside the agreement. There is currently a list of temporary exclusion for some products, in force until January 1, 2000.
Malaysia benefits from the Generalized System of Preferences, under which 14% of its exports are carried out.
Customs Classification
The Customs classification of goods is based on the International Nomenclature of the Harmonised System. A majority of Customs duties are calculated ad valorem and are specific only in certain cases. Imported goods, except for machinery, its parts and components, are subject to a sales tax which varies between 5 and 10%. In recent years, duties have dropped and now fluctuate between 15 and 25%. However, certain sectors can be taxed up to 30%. The Customs tariff is high when the imported product is also locally produced (from 30 to 50 %).
In January 1996, Malaysia, within the ASEAN market, subscribed to the Common Effective Preferential Tariffs (CEPT) arrangements, which significantly increase the product list of the previous Preferential Trading Arrangements (PTA). The introduction of the CEPT is meant to accelerate the establishment of a free trade zone within ASEAN countries (AFTA - ASEAN Free Trade Area). Before 2003, all products integrated into the CEPT, will undergo a duty from 0 to 5%. Non-taxed farm products remain outside the agreement. There is currently a list of temporary exclusion for some products, in force until January 1, 2000.
Malaysia benefits from the Generalised System of Preferences, under which 14% of its exports are carried out.
Method of Calculation of Duties
Malaysia applies two systems of tariff classification, one for trade inside ASEAN and the other, the Harmonized System, for trade with other countries up to the six figure level. The Malaysian Customs classification is founded on the Harmonized System (HS) of 2002. There are 10 579 tariff lines at the nine figure level in Malaysia's tariff structure. Nearly all duties are ad valorem duties; the others are specific duties, mixed duties or alternative duties.
Import duties are based on the cost of the goods (on the market) and the costs of insurance, freight, commission, and other charges linked to the buying and transporting of the goods. Export duties are based on the cost of the goods only (on the market).
Method of Payment of Customs Duties
Customs duties and taxes must be paid before the Customs Office authorizes the export or the import of a good.
Import Taxes (Excluding Consumer Taxes)
Malaysia applies at least NPF status to all its trade partners, while granting tariff preferences to the ASEAN countries. Two systems of tariff classification coexist; one for trade within ASEAN and the other, the Harmonized System, for trade with other countries up to the six figure level.
 

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