Essential Guide to the Customs Tariff in Malaysia

Customs Tariff Rate in Malaysia

The customs tariff rate in Malaysia varies depending on the type of goods being imported. However, the average applied tariff rate for industrial goods is 6.1%. This means that for every RM100 worth of industrial goods imported into Malaysia, the importer must pay RM6.10 in import duty.

For certain goods, such as alcohol, wine, poultry, and pork, Malaysia charges specific duties representing considerably higher effective tariff rates. For example, the tariff rate for alcohol is 50% to 100%, and for tobacco products is 100% to 200%.

In addition to import duties, Malaysia charges a Sales and Service Tax (SST) on imported goods. The SST rate is currently set at 10%. This means that for every RM100 worth of imported goods, the importer must pay RM10 in SST.

The Royal Malaysian Customs Department (JKDM) administers import duties and SST in Malaysia. The JKDM publishes a tariff schedule that lists the applicable tariff rates for all goods imported into Malaysia. The tariff schedule can be accessed online at the JKDM’s website.

Here are some examples of customs tariff rates in Malaysia:

• Alcoholic beverages: 50% to 100%
• Tobacco products: 100% to 200%
• Motor vehicles: 10% to 100%
• Clothing and footwear: 10% to 20%
• Food and beverages: 5% to 10%

These are just examples, and tariff rates for specific goods may vary. For more information, please refer to the JKDM’s tariff schedule.

Customs Clearance Fee in Malaysia

The customs clearance fee in Malaysia is MYR 33 (equivalent to USD 10) per Customs Declaration presented to customs authorities. This fee applies to goods valued at MYR 500 (equivalent to USD 150) or more. There is no customs clearance fee for goods valued at less than MYR 500.

In addition to the customs clearance fee, import duties and taxes on goods imported into Malaysia may also be paid. The import duty rate for goods varies depending on the type of goods being imported. The Sales and Service Tax (SST) rate is currently 6%.

You can find more information about customs clearance fees, import duties, and taxes in Malaysia on the Royal Malaysian Customs Department website.

What is a Customs Tariff in Malaysia

A customs tariff in Malaysia is a tax levied on goods imported into or exported from the country. The Malaysian government uses customs tariffs to protect domestic industries, generate revenue, and control the flow of goods into and out of the country.

Purpose of Customs Tariffs in Malaysia

• Protect domestic industries: Customs tariffs can make imported goods more expensive than domestic goods, making domestic industries more competitive and protecting them from foreign competition. This helps to preserve jobs in domestic industries.

• Generate revenue: Customs tariffs are a source of income for the Malaysian government. The money collected from these tariffs funds government programs and services.

• Control the flow of goods: Customs tariffs can regulate the flow of goods into and out of Malaysia. For instance, the government may use tariffs to discourage the import of goods it considers harmful or undesirable.

Types of Customs Tariffs in Malaysia

Malaysia primarily utilizes two types of customs tariffs:

• Ad valorem tariffs: These tariffs are based on the value of the imported goods. The higher the value of the goods, the higher the tariff.

• Specific tariffs: These tariffs are a fixed amount of money charged on each unit of imported goods, regardless of the goods’ value.

Impact of Customs Tariffs in Malaysia

Customs tariffs can significantly impact the Malaysian economy. They can:

• Increase prices: Customs tariffs can make imported goods more expensive, leading to higher consumer prices.

• Reduce trade: These tariffs can discourage trade between Malaysia and other countries, potentially hindering economic growth.

• Protect jobs: Customs tariffs can help safeguard jobs in domestic industries by making imported goods more expensive and reducing competition from foreign producers.

How to Get Your Tariff Code in Malaysia

There are two main ways to get your tariff code in Malaysia:

1. Use the Royal Malaysian Customs Department’s (JKDM) online tariff search tool:

The JKDM’s online tariff search tool allows you to search for tariff codes by product description, HS code, or keyword. The tool is available in English and Malay.

To use the tool, go to the JKDM’s website and click the “Tariff” tab. Then, select “Tariff Search” from the drop-down menu. Enter the product description, HS code, or keyword you are looking for in the search bar and click on the “Search” button. The tool will display a list of results that match your search criteria.

2. Contact the JKDM for assistance:

If you cannot find the tariff code you are looking for using the online search tool, you can contact the JKDM for assistance. You can get the JKDM by phone, email, or in person.

To contact the JKDM by phone, call +603-8882 2100/2300/2500. To get the JKDM by email, email http://www.customs.gov.my/en

If you cannot find the tariff code you are looking for using either of these methods, you can also consult a customs broker or freight forwarder. These professionals can help you identify the correct tariff code for your goods.

Here are some additional tips for getting your tariff code in Malaysia:

• Be as specific as possible when describing your goods.
• Use the correct terminology when describing your goods.
• Cross-check your results with other sources, such as the World Trade Organization’s Harmonized System (HS) code database.

Who Pays the Customs Tariff in Malaysia

The importer is typically responsible for paying customs tariffs in Malaysia. However, there are some exceptions to this rule. For example, if the importer is a non-resident of Malaysia, the customs broker may be responsible for paying the tariffs on their behalf. Additionally, suppose the goods are being imported under a special customs arrangement, such as a temporary import or a bonded warehouse arrangement. In that case, the customs authorities may waive or defer the payment of tariffs.

Here is a table summarizing who is typically responsible for paying customs tariffs in Malaysia:

It is important to note that the final responsibility for paying customs tariffs always rests with the importer. Even if the importer has arranged for someone else to pay the tariffs on their behalf, they are still ultimately responsible for ensuring that the tariffs are reimbursed.