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Import Export FAQ's Site Contents Home
 
 

Malaysian Import and Export Custom Procedures

About Malaysia Import duty and GST

 
 

Malaysian GST "Goods and Service Tax", Custom Excise duties and Import taxes when importing goods into Malaysia -- effective as of 1st April 2015

GST and Malaysian Custom Excise import duties shall be leviable on the goods imported into Malaysia.

The rate of GST is 6% and Excise import duties varies according to the type of goods imported.

The rate applicable for Malaysia Custom Import Excise duties to each category of goods imported are indicated on each category of goods in column (4) of the first schedule to the Customs Duties Order 1996.

There are instances where the imported goods are zero rated GST as well as exempted from import excise duties.

Importation of Zero rated GST good may still be subjected to excise import duties.

GST means Goods and Services Tax -- it is a Malaysian consumption tax based on the value added concept.
 

  This Page: Malaysian Import and Export Custom Procedures
About GST Malaysian goods and services tax

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What you need to know about Malaysian Custom Inward Manifest Submission

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Malaysian Customs control in relation to the clearance of goods.

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Malaysian Customs Documentation are goods declaration form required by the customs department.

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Particulars to be declared. Malaysian Customs generally require the following particulars in the customs declaration forms.

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Documents Required in Support of the Malaysian Customs declaration form.

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Offences and Penalties in making incorrect declaration and falsifying documents.

 


 

 

 
 
Malaysia goods and services tax (GST)
A value added tax was implemented by the Malaysian Government effectively on 1st April 2015.

Its purpose is to replace the existing 5% to 10% sales and service tax with the application of 6% GST on the importation of excise or taxable goods into Malaysia (some goods exempted from GST or GST zero rated goods).

The imposition of 6% GST for goods imported into Malaysia and is levied on the supply of goods and services at each stages of the supply chain from the importer and supplier up to the retail stage of the distribution.

The 6% GST tax element DOES NOT become part of the cost of the product because GST paid on the business inputs by the importer is claimable.
 

GST Summary

 

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GST Malaysian goods and services tax and Import Excise duty leviable on the goods imported into Malaysia. The rate of import duty varies according to the type of goods imported.

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Malaysian Custom Examination of goods. It is carried out after the declaration of goods are accepted by the proper officer of customs.

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Temporary Import and Export. Goods imported on a temporary basis with a view to subsequent re-export are allowed to be delivered on importation without payment of duty.

 

 

 

 

 

  • 6% GST is charged and collected on all "taxable and non taxable goods” IMPORTED into Malaysia by any individual or commercial entity at the point of entry (sea port, air-port, immigration custom check point).
     
  • Importation of Zero rated GST goods are exempted from having to pay the 6% Malaysia goods and services tax (GST).
     
  • Importation of *Zero rated GST goods are still subjected to Malaysian Custom Excise duties (import duty) unless the goods are both GST zero rated as well as excise duties.
     
  • Other than the 6% GST imposition for TAXABLE GOODS IMPORTED into Malaysia at the point of entry, imported goods are also subjected to **Malaysian custom Excise duties (import duty) that varies from 0% to 300%.

    The valuation method is based on "Cost, Insurance and Freight" (CIF) – meaning that: the 6% GST imposition is based on the total cost of shipping value, cost of imported goods, cost of freight and cost of insurance.
     
  • Importation of goods into Malaysia via courier, parcel post, hand carried, etc., within (Ringgit Malaysia) RM500 are not subjected custom excise duties and not exempted from 6% GST
     
  • The importer (***only businesses registered under GST can charge and collect GST) is allowed to claim the input tax credit – in short: the importer shall be able to claim back the 6% GST paid therefore the 6% GST tax element does not become part of the cost of the product.
     
  • Export of Malaysian manufactured goods and services are not subjected to GST.
     
  • Export duty is leviable on the goods to be exported. Column (5) of the first schedule to the Customs Duties Order 1996 indicates the rate of export duty applicable on a particular type of goods.

    The word "nil" in columns (4) and (5) appearing against any class of goods in the first schedule denotes that no import or export duty is applicable to that class of goods.

 

*Zero rate GST goods: Please contact your nearest freight forwarder for more information and the full list of GST zero rated goods or look it up here: http://gst.customs.gov.my/en/Pages/default.aspx

**Malaysian custom Excise dutiable goods: varies from 0% to 300% for example completely built up cars are duty rated at 300% and zero rated duties for computers etc., which are subjected to changes from time to time. Please contact your nearest local Malaysian freight forwarder for more information.

***Only business registered under GST can charge and collect GST and GST collected on output must be remitted to the Government.

***GST registered businesses have an identification number. Any individual or business entity with an annual sales turnover above RM500,000 are liable to be registered under GST.

An individual with a registered sole proprietor or partnership business with the ROB (Registrar of Business), a company registered with The Companies Commission of Malaysia (SSM) http://www.ssm.com.my/en/about-ssm trust, estate, society, union, club, association or any organization including a government department which is involved in the business of making taxable supplies in Malaysia. 
 

 
Payment of customs duties or taxes can be made by cash, cheque or bank draft. Payment by cheque requires prior lodgment of security, normally in the form of a banker's guarantee to ensure the securing of the amount to be drawn.

Payment of customs duties or taxes shall be made at customs office at the place of import or export before the goods are released from customs control.

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Consular Invoice - When a firm sells its goods abroad, it must arrange for each export shipment to be accompanied by various documents.

Depending on the country to which the goods are being sent, these documents will include some or all of the following: consular invoice, commercial invoice, certificate of origin, bill of lading, packing list, health certificate, import license, and insurance certificate.

In general, their purpose is to provide the foreign Customs authority with a complete, detailed description of the goods so that the correct import duty can be levied. If the information given is found false, heavier fines may be imposed and/or the goods confiscated.

The preparation of such documentation is one of the tasks of an export firm's or of a shipping agent, known as a freight forwarder whose services may be employed for a fee. In addition to the documents required by the foreign country, the exporter must also provide an export declaration.

 

 

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