Essential Guide to the Malaysia Import Duty Exemption List

What Products Are Exempt from Import Tax in Malaysia

A variety of products are exempt from import tax in Malaysia, depending on the specific category of the goods and the intended purpose of their importation. Here’s an overview of some of the main exemptions:

  1. Personal Effects: Travelers entering Malaysia can bring in their personal belongings without incurring import duties or sales tax, provided the items are for their personal use and not for commercial purposes. This includes items like clothing, toiletries, cosmetics, and portable electronic devices like laptops and smartphones.

  2. Food Products: Certain food items are exempt from import duties and sales tax, including:

    • Sunflower oil
    • Olive oil
    • Butter and ghee
    • Cheese
    • Chocolate and confectionery
    • Prepared foods such as canned goods, pasta, and biscuits
  3. Medical Supplies: Essential medical supplies, including medicines, surgical instruments, and diagnostic equipment, are exempt from import duties and sales tax when imported for medical purposes.

  4. Educational and Scientific Materials: Books, periodicals, educational software, and scientific equipment are exempt from import duties and sales tax when imported for educational or research purposes.

  5. Raw Materials and Components for Manufacturing: Raw materials and components imported for the purpose of manufacturing goods for export are exempt from import duties and sales tax.

  6. Agricultural Products: Certain agricultural products, such as fertilizers, pesticides, and seeds, are exempt from import duties and sales tax when imported for agricultural use.

  7. Goods Imported for Government Projects: Goods imported for approved government projects are exempt from import duties and sales tax.

  8. Goods Imported Under Free Trade Agreements (FTAs): Goods imported from countries with which Malaysia has FTAs may be eligible for reduced or eliminated import duties and sales tax.

It’s important to note that these are just general guidelines, and specific exemptions may vary depending on the exact product and its intended use. For more detailed information and to verify the exemption status of specific goods, it’s always advisable to consult the Royal Malaysian Customs Department (RMCD) website or contact them directly.

How to Get Import Duty Exemption in Malaysia

The process of getting import duty exemption in Malaysia depends on the type of goods you are importing and the reason for importation. Here’s a general overview of the steps involved:

  1. Determine Eligibility: Check if the goods you are importing are eligible for import duty exemption under the Customs Duties (Exemption) Order 2017 or other applicable regulations. The Royal Malaysian Customs Department (RMCD) provides a comprehensive guide to import duty exemptions on their website. You can find information on eligible categories of goods, specific exemption criteria, and the application process. The RMCD’s Trade Facilitation System (TFS) also allows you to check for import duty exemption eligibility online. You can create an account on the TFS and access the exemption checker tool.

  2. Complete the Customs Declaration Form (Form K3). This form can be obtained from the RMCD website or at any customs entry point.

  3. Apply for Approval: For certain categories of goods, you may need to apply for approval from the relevant government agency, such as the Malaysian Investment Development Authority (MIDA) or the Ministry of Agriculture and Food Industry (MAFI).

  4. Submit Customs Declaration: Upon arrival of the goods in Malaysia, submit a customs declaration form to the Royal Malaysian Customs Department (RMCD) at the entry point.

  5. Present Supporting Documentation: Provide supporting documentation to substantiate your claim for import duty exemption, such as invoices, purchase orders, or letters of approval from the relevant authorities.

  6. If the value of your goods exceeds the exemption limit, you may be required to pay import duty. The customs officer will assess the value of your goods and determine whether you are liable for duty payment.
  7. If you are granted import duty exemption, you will receive a Customs Release Order (Form K5). Keep this document safe as it may be required for further verification.

Here are some additional tips for getting import duty exemption:

  • Start planning early and familiarize yourself with the requirements and procedures.
  • Seek guidance from the RMCD or a customs broker if you have any questions or need assistance.
  • Keep copies of all your documentation for future reference.

What is Import Tax Exemption in Malaysia

Import tax exemption in Malaysia refers to the waiver of import duties and sales tax imposed on certain goods imported into the country. This exemption is granted to promote trade and investment, reduce the cost of goods for consumers, and support specific industries or sectors.

The Royal Malaysian Customs Department (RMCD) administers import duty exemptions in Malaysia, and the eligibility criteria vary depending on the category of goods and the intended purpose of importation. Generally, the following factors are considered:

  1. Category of Goods: Certain types of goods are automatically exempt from import duties, such as raw materials, machinery and equipment for manufacturing, educational and scientific materials.

  2. Intended Purpose: The intended use of the imported goods is crucial. Goods imported for manufacturing, research, or government projects are often eligible for exemptions.

  3. Value and Quantity: In some cases, the value or quantity of the imported goods may determine eligibility.

  4. Free Trade Agreements (FTAs): Goods imported from countries with which Malaysia has FTAs may receive reduced or eliminated import duties, depending on the terms of the agreement.

To obtain import tax exemption, importers typically need to submit an application to the RMCD along with supporting documentation, such as invoices, packing lists, certificates of origin, and proof of intended use. The RMCD reviews the application and may grant the exemption if the criteria are met.

Import tax exemption can significantly benefit businesses and individuals by reducing the overall cost of importing goods into Malaysia. It encourages trade and investment, promotes industrial development, and makes essential goods more affordable for consumers.