What is Import Tax

What is Import Tax?

Import Tax is also known as Import Rate, Import Duty, or Customs Duty. Import duty is a tariff imposed by a country's customs on imported goods and items. Levying import duties increases the cost of imported goods and raises their market prices. In addition to paying the Sales and Service Tax (SST), imported goods into Malaysia are subject to Import Tax based on the type of goods.

Do you know how to check the Import Tax for goods?
 

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How to check import duties?

Actually, the websites for checking import duties and checking HS Codes are the same. You can browse the official website.

Today, let's take electronic products as an example to check import duties. Import duties are actually divided into two categories:

PDK 2017: When you use the tax type PDK 2017, the import duty (Import Rate) will be 20%. See the image below for reference:
 

ACFTA: When you use the tax type ACFTA, some import duties (Import Rate) may be reduced to 5%, or even 0%. See the image below for reference:
 

 

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How To Exempt / Reduce Import Tax?

1. Large volume / Full container

If your volume of goods is large, you can request a Certificate of Origin (commonly known as FORM E) from the supplier. With this form, you can then pay the import duties according to the rates displayed by ACFTA.

2. Small volume / Less than Container Load (LCL)

If your volume of goods is relatively small, we suggest that you consider using our Less than Container Load (LCL) shipping service. This would be the most time-saving and efficient solution for you.

Still have other inquiry? Contact us now!