This page is also available in: Melayu (Malay)
Not All Goods Require a License When Entering Malaysia
When doing business in Malaysia, it is important to understand the complex goods-specific rules that still apply. This guide explores the custom duty rate and dutiable goods in the country.
Why You Need to Understand Malaysia’s Trading Laws
Understanding the local trading and customs laws will save you a lot of time and rejection from the officials. Not all goods that are imported and exported will require a license. However, if your dutiable goods need a license, it is important to register with the Companies Commission of Malaysia (SSM).
Applying for Your Licenses
For dutiable goods, you will need an import license. After registering with the SSM, the license can be applied for at the Ministry of International Trade and Industry (MITI).
The Documents You Will Need
When goods are imported or exported out of Malaysia, certain documents must be supplied to the local customs officials. The documents you will need are:
- Certificate of Origin
- Customs Export/Import Declaration
- Packing List
- Commercial Invoice
- Bill of Lading
The Cost of Tariffs and Taxes
The levies on tariff rates in Malaysia range from 0-50%. It follows the ad valorem rate approach. Custom duty rate paid on industrial goods that have been imported is 6.1%. if the goods are already produced domestically or goods that classified as pork and alcohol, the tariff rates tend to be higher.
Raw materials that are imported into the country enjoy a tariff exemption or a reduced tariff rate. This is applicable if those materials will be used to manufacture goods that will be exported.
The Sales and Services Tax (SST)
The SST tax in Malaysia was reintroduced in 2018. This custom duty rate is leviable on all goods imported into Malaysia. The SST rate is between 5-10%. The additional excise import duties that are charged will vary depending on what type of goods are imported.
In some instances, the SST rates could be zero or there is an exemption for certain types of goods. The Malaysia Custom Duty Rate for dutiable goods would vary based on the category of the goods that are coming into the country. The SST is a tax that is imposed at the import stage, and it is considered a single-stage tax.