Import procedures and processes for goods imported into Malaysia
The importation of goods from abroad into the Malaysian market is carried out through the following basic steps:
Step 1: Determine the import status/import conditions applicable to the goods
Not all goods are allowed to be imported into Malaysia, and not all imports are subject to the same import regime. Therefore, before importing goods into Malaysia, Vietnamese enterprises and Indonesian importers need to determine the applicable import status of the goods in order to fully comply with the requirements and prepare all necessary import documents and papers.
Details for step 1: https://wtocenter.vn/rcep-market/30067-determine-the-import-statusimport-conditions-applicable-to-the-goods
Step 2: Classify the goods
Determining the HS code of the goods is a very important step for identifying the applicable tariff rate as well as the requirements (prohibition or import control) applicable to those goods. Under World Customs Organization (WCO) rules, member countries use the same HS code for the first 6 digits, while the digits after that are determined by each country and may therefore differ. Vietnam and Malaysia both currently apply the 8-digit HS system under the ASEAN Harmonized Tariff Nomenclature (AHTN).
Details for step 2: https://wtocenter.vn/rcep-market/30066-classify-the-goods
Step 3: Determine the applicable taxes and fees
Import duty
After determining the HS code of the goods, the importer can identify the import duty applicable to those goods. Import duty is calculated as a percentage of the customs value of the goods.
For Vietnamese goods imported into Malaysia, businesses currently have 10 tariff options, each corresponding to a certain tariff rate and conditions for eligibility. Importers will choose the most appropriate and beneficial tariff scheme based on the specific conditions of the goods. Specifically:
- MFN tariff
- Tariffs under the FTAs to which both Vietnam and Malaysia are parties
Other taxes
- Sales Tax
- Excise Duty
Details for step 3: https://wtocenter.vn/rcep-market/30065-determine-the-applicable-taxes-and-fees
Step 4: Import declaration, tax payment, and customs clearance
The importer or an authorized customs agent must make a customs declaration for imported goods through Malaysia’s electronic declaration system: https://www.dagangnet.com/trade-facilitation/edeclare/, and submit the relevant supporting documents for customs verification and confirmation.
The Customs authority has the right to request physical inspection of any shipment whenever it deems necessary to ensure that the goods fully comply with import regulations.
After completion of the declaration procedures, full payment of taxes and fees, and satisfaction of inspection and supervision requirements of the Royal Malaysian Customs Department (Jabatan Kastam Diraja Malaysia - JKDM), the shipment will be cleared and permitted to circulate in Malaysia.
Details for step 4: https://wtocenter.vn/rcep-market/30064-import-declaration-tax-payment-and-customs-clearance
Source: Center for WTO and International Trade - VCCI
