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Ultimate Guide to Malaysia Customs HS Codes

January 30, 2024

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How to Find Your HS Code

The HS Code (Harmonized System Code) is an international standardized system for classifying goods. It is used by customs authorities worldwide to identify and classify goods for import and export purposes. The HS Code is also used by businesses to track their imports and exports and calculate customs duties and taxes.

There are a few ways to find the HS Code for a product in Malaysia:

Use the JKDM HS Explorer: The JKDM HS Explorer is a web-based tool that allows you to search for HS Codes by keyword, description, or HS Code. You can also browse the HS Code by chapter and subheading. To use the JKDM HS Explorer, go to the following URL: http://mysstext.customs.gov.my/tariff/
Tariff Schedule of Malaysia: The Tariff Schedule of Malaysia is a comprehensive document listing all the HS Codes for products imported into or exported from Malaysia. You can find Malaysia’s tariff schedule on the JKDM website.
MATRADE: The Malaysia External Trade Development Corporation (MATRADE) is a government agency that promotes Malaysian exports. MATRADE provides several resources for businesses, including a tariff code search tool.
Contact the Malaysia Royal Customs Department: If you are not sure of the HS Code for a product, you can contact the Malaysia Royal Customs Department for assistance. The Malaysia Royal Customs Department has a team of experts who can help you identify and classify your goods.

Here are some additional tips for finding the HS Code for a product in Malaysia:

Be as specific as possible in your search: The more specific you are, the easier it will be to find the correct HS Code. For example, instead of “clothing,” search for “men’s shirts.”
Use multiple search terms: If unsure of the correct search terms, try using various search terms. For example, you could search for “men’s shirts” and “cotton” or “men’s shirts” and “imported.”
Browse the HS Code: If you are unsure where to start, you can browse the HS Code by chapter and subheading. The HS Code is organized into 22 chapters, each further divided into subheadings.

What is the HS Code for Import Duty

The specific HS Code for import duty will vary depending on the imported product. However, the HS Code for a product can be used to determine the import duty rate for that product. The import duty rate is a percentage of the value of the imported product that is charged to the importer.

For example, the HS Code for men’s shirts is 9605.10.20. The import duty rate for this product is 15%. This means an importer must pay RM15 in import duty for every RM100 worth of men’s shirts they import.

You can find the HS Code for a product using the JKDM HS Explorer, a web-based tool that allows you to search for HS Codes by keyword, description, or HS Code. You can also browse the HS Code by chapter and subheading. To use the JKDM HS Explorer, go to the following URL: http://mysstext.customs.gov.my/tariff/

Once you have the HS Code for a product, you can use the import duty rate table to find the import duty rate for that product. The import duty rate table is available on the Malaysia Royal Customs Department website.

Who Can Provide HS Codes

Several parties can provide HS Codes for products, depending on the context and specific needs. Here are some of the primary sources of HS Codes:

Customs Authorities: Customs authorities, such as the Malaysia Royal Customs Department, are responsible for administering HS codes and providing guidance on their application. They maintain databases of HS codes and offer online tools for searching and identifying the appropriate codes for specific products.
Customs Brokers: Customs brokers are licensed professionals who specialize in handling customs procedures for importers and exporters. They have expertise in HS codes and can assist in identifying the correct codes for products and ensuring compliance with customs regulations.
Product Manufacturers and Suppliers: Product manufacturers and suppliers often have HS codes for their products readily available. They may list HS codes on product specifications, invoices, or other documentation.
Trade Associations and Industry Experts: Trade associations and industry experts within specific sectors often maintain resources and databases of HS codes relevant to their industries. They can guide the identification and application of HS codes for specialized products.
Online HS Code Search Tools: Numerous online tools, such as the JKDM HS Explorer and the World Customs Organization’s HS Code Online Database, allow users to search for HS codes by keyword, description, or HS Code. These tools can be beneficial for identifying codes for less common or specialized products.
Freight Forwarders and Shipping Companies: Freight forwarders and shipping companies may also assist in identifying HS codes for products they are handling. They may have access to HS code databases or can consult with customs authorities on behalf of their clients.

In general, it is advisable to consult multiple sources to ensure the accuracy of HS codes for specific products. Customs authorities and customs brokers should be considered the most authoritative sources for HS codes, but other sources can provide valuable information and assistance.

What Happens If You Use the Wrong HS Code

Using the wrong HS code for a product can lead to several negative consequences, including:

Incorrect Duties and Taxes: If the wrong HS code is used, the importer or exporter may pay incorrect duties and taxes, resulting in either an overpayment or underpayment. This can lead to financial losses for the business and potential penalties from customs authorities.
Customs Delays and Seizures: Customs authorities may delay or seize shipments if they suspect the wrong HS code has been used. This can disrupt supply chains, cause delays in product delivery, and lead to additional costs for the importer or exporter.
Non-Compliance Penalties: Using the wrong HS code is considered non-compliance with customs regulations, and importers or exporters may be subject to penalties, such as fines or even criminal charges.
Denial of Import or Export Privileges: In severe cases, repeated or intentional misuse of HS codes can lead to the business denying import or export privileges, significantly impacting its operations.
Reputational Damage: Misusing HS codes can damage the importer’s or exporter’s reputation, as it suggests a lack of attention to detail and compliance with regulations. This can make doing business with other companies difficult and tarnish the company’s public image.

To avoid these consequences, ensuring that the correct HS code is used for all imported or exported products is crucial. Businesses should consult with customs authorities, customs brokers, or other experts to determine the accurate HS codes for their products. Additionally, it is crucial to keep correct records of HS codes used for each shipment to maintain compliance and avoid any potential issues.

Is HS Code the Same for All Countries

The Harmonized System (HS) Code is used by over 200 countries and economies worldwide, including Malaysia, to identify and classify goods for various purposes, including customs clearance, international trade statistics, and product identification.

While the first six digits of the HS Code are universal and consistent across all participating countries, the remaining digits may vary depending on the specific requirements of each country. This is because countries may have additional national classifications for particular products or use different subheading structures to reflect their unique trade patterns and regulatory needs.

For instance, the HS Code for products like “men’s woven cotton shirts” is consistently 9605.10.20 across all countries. However, the subsequent digits may differ depending on the country of importation. For example, the HS Code for the same product in Malaysia is 9605.10.20.00, while in the United States, it is 9605.10.20.80.

This variation in the subsequent digits allows countries to maintain more granular control over their trade data and apply specific regulations or duties based on national requirements. However, the core six-digit HS Code structure remains consistent, ensuring a global standard for product classification and facilitating international trade.

What is HS Code in Shipping

The Harmonized System (HS) code, also known as the Harmonized Commodity Description and Coding System, is an international standardized system for classifying traded products. It is used by over 200 countries and economies around the world, including Malaysia, to identify and classify goods for various purposes, including:

Customs clearance: Customs authorities use HS codes to determine the applicable import and export duties, taxes, and regulations.
International trade statistics: HS codes are used to collect and compile global trade statistics, allowing for comparison and analysis of trade patterns.
Product identification: HS codes provide a standardized way to identify and describe products, facilitating communication and understanding across different languages and industries.

In the context of shipping, HS codes play a crucial role in the following aspects:

Customs documentation: HS codes are a mandatory element in customs documentation, such as commercial invoices and bills of lading. They enable customs officers to efficiently assess the shipment and determine the appropriate duties and regulations.
Freight classification: HS codes are used to classify freight for shipping purposes. This classification determines the applicable shipping rates and handling procedures.
Cargo tracking and monitoring: HS codes are associated with shipment data, allowing for effective tracking and monitoring of goods throughout the supply chain.
Import and export restrictions: HS codes identify products subject to import or export restrictions, such as quotas or licensing requirements.
Tariff calculations: HS codes calculate applicable import and export duties based on the product type and country of origin or destination.

In summary, HS codes are essential in international shipping, facilitating efficient customs clearance, accurate freight classification, effective cargo tracking, and compliance with import and export regulations. They streamline global trade and ensure the smooth flow of goods across borders.

Do I Need an HS Code to Ship

Whether or not you need an HS Code to ship depends on your shipment’s destination and the value of the goods.

For domestic shipments within Malaysia:

You do not need an HS Code to ship domestically within Malaysia.

For international shipments:

An HS Code is required for all international shipments, regardless of the value of the goods. This is because customs authorities in the destination country will need to know the goods to assess the appropriate duties and taxes.

Here are some exceptions to the requirement for an HS Code:

Shipments of documents: Shipments of documents, such as letters, invoices, and contracts, do not require an HS Code.
Shipments of gifts: Gifts with a total value of less than RM500 do not require an HS Code.
Shipments of personal effects: Personal effects, such as used clothing and household goods, do not require an HS Code.

How to Read the HS Code in Malaysia

The HS Code in Malaysia is a six-digit code that is structured as follows:

Chapter (2 digits)  Heading (2 digits)  Subheading (2 digits)

The first two digits of the HS Code represent the chapter, which is the broadest classification of goods. For example, Chapter 01 covers live animals and animal products, while Chapter 84 covers machinery and mechanical appliances.

The following two digits of the HS Code represent the heading, a more specific classification of goods within a chapter. For example, Heading 0101 covers live horses, while Heading 8471 covers automatic data processing machines.

The last two digits of the HS Code represent the subheading, which is the most specific classification of goods within a heading. For example, Subheading 010121 covers pure-bred breeding animals, while Subheading 847130 covers digital addressing machines.

In addition to the six-digit HS Code, Malaysia may use additional digits to classify goods further. These additional digits are called national classifications and are typically used to identify goods subject to specific regulations or duties in Malaysia.

Here is an example of how to read an HS Code in Malaysia:

HS Code: 847130

Chapter: 84 (Machinery and mechanical appliances)
Heading: 8471 (Automatic data processing machines)
Subheading: 847130 (Digital addressing machines)