Declaration Form | |||
All goods meant for import and export either it is under import/export duty or otherwise must be declared in writing in the respective forms; customs form No 1 for imported goods and customs form No 2 for exported goods. Declaration forms must be filled in detail including providing true information regarding the number, description of packages/crates, value, weight, quantity and type of goods. The origin of the goods will also need to be informed. This applies for goods meant for exports as well where the final destination of the goods is notified. Completed Custom forms will need to be submitted to Customs offices at the place where the goods are to be imported or exported. | |||
Customs Agent | |||
Under the provision of the Customs Act 1967, importers and exporters are allowed to appoint any agents to act on their behalf with the condition that the agents had been given the approval by the Customs Director General for customs clearance duties. Application for legal agents will need to be given to the customs office at the location where the goods are to be imported or exported. Separate approvals are not necessary to manage customs clearance duties for each customs office. For example; if approval has been given to manage customs clearance duties in Johor Bahru; this means that the same approval can be applied to all customs clearance offices in the country on the condition that the state Customs Director has been informed. | |||
Duties | |||
All duties/custom taxes imposed on imported goods will need to be paid in advance before the goods can be released. The same applies for exported goods. All exported goods will need to settle the export duties prior to clearance. Duties/Taxes levied on any goods imported into the county include :
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Import Duty | |||
Duty import rates vary according to the type of imported goods. The rates imposed on each good imported is describe in column 4 and 5 of the First Schedule under the Customs Duties Order 1996. It is possible that imported goods are exempted from the import duty. However, it is not exempted from the sales tax. | |||
Sales tax | |||
Rates on the sales tax levied are described in the Sales Tax Order 1977. There are 3 different rates charges: 5%, 10%, 20% and 25% which are levied on all imported goods other than those listed in the Sales Tax (Exemption) Order 1980 which are exempted from the sales tax. Goods that will be levied the 20% sales tax includes :
Cigars, cheroots, cigarillos and cigarettes of tobacco substitutes, beedies and other products classified under the heading 2402.10 000 to 2402.90 200 of the Customs Duty Order 1996. Other than the goods described above and those exempted from the Sales Tax (Exemption) Order 1980, the sales tax levied would be either 5% or 10% For imported goods, sales taxes are calculated and assessed by :
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Export Duty | |||
Column 5 of The First Schedule under the Customs Duties Order 1996 indicates the export duty rates imposed on particular exported goods. The word “Nil” printed in column 4 and 5 in the Customs Duties Order 1996 indicates no export and import duties will be levied on export and imported goods. | |||
Cept Duty Rates | |||
An agreement on the creation of a Common Effective Preferential Tariff (CEPT) Scheme for the Asean Free Trade Area (AFTA) was setup for ASEAN countries. Following the existence of the scheme, a CEPT order called Customs Duties (Goods of ASEAN Countries Origin)(ASEAN Harmonised Tariff Normenclature and Common Effective Preferential Tariff) Order 2004 was issued effective 1.1.2004 Under the CEPT Order, column 2 of the Second Schedule contains a list of goods that falls under the CEPT scheme. CEPT duties are also listed as described in column 3 of the same table. Importers importing goods within ASEAN countries qualify under the CEPT duties rates as long as they comply to the followings: -
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Prohibited Items Under Imports And Exports | |||
Customs (Prohibition of Imports) Order 1998 – P.U. (A) 210/98
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Customs (Prohibition Of Exports) Order 1998 - P.U. (A) 211/98 | |||
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Application For Import / Export Licence | |||
Ministry of Trade and Industry issues Import/Export Licence. Applicants can submit their applications to the following address: Chief Secretary, Ministry of International Trade and Industry (MITI), Trade Support Section, Block 10, Jalan Duta, 50622 Kuala Lumpur. Tel: 6201 0022/33/44 Fax: 6201 0827 Applications for import licences must be through the J.K. 69 form. There are no particular forms required for the application of export licences. However exporters are required to fill up the Customs Form No. 2 and submit it to the respective officers. If the application is approve, submitted Customs Form No 2 will be endorsed by the respective officers. | |||
Exemption From Sales Tax And Customs Duties | |||
Customs Duties (Exemption) Order 1988 and Sales Tax (Exemption) Order 1980 exempts several individuals/ organizations from customs duties and sales tax on certain imported goods subject to certain conditions. | |||
Authority Exempt From Customs And Sales Duties | |||
Section 14 of the Customs Act 1967 and Section 10 of the Sales Tax Act 1972 gives the authority to the Minister of Finance to exempt individuals’ specific organizations or certain goods from customs duty or sales tax. | |||
Assessment On Prices Of Goods | |||
In order to determine the customs duties on the basis of the value of goods imported or exported goods will be assess under Section 2 of the Customs Act 1967. Basically the act specifies the selling price of the goods in the open market by sellers to buyers whom are not connected business wise. Amended prices (or price increase) will have to take into account relationships between seller and buyer and terms and rules of sales. Power to value or assess goods is allotted under Section 13 of the Customs Act 1967. Any queries regarding the value or assessment of goods or regarding amendments of price (price increase) on imported goods by agents, sole distributors or federated companies should be directed to : Director Technical Services Department (Value Management Section) Level 6, Block 2G1B, Ministry of Finance Complex, Precinct 2, Federal Government Administration Center, 62502 Putrajaya Tel: (603) 8882 2255 Fax: (603) 8889 5905 | |||
Goods Classification | |||
All imported and exported goods into the country must be categorized precisely based on the Malaysian Customs tariff numbers listed under the Customs Duties Order 1996. Any queries regarding classification of import and export goods should be made to the particular customs station of which the goods are to be imported or exported using examples (if possible) and relevant brochures. The following particulars are also required :
If there are disagreements between customs and importers/exporters regarding the exact classification of import/exported goods, the matter will be referred by the nearest customs stations or to : Director Technical Services Division (Valuation Management Section), Royal Malaysian Customs Headquarters, Level 6, Block 2G1B, Ministry of Finance Complex, Precinct 2, Federal Government Administration Center, 62592 Putrajaya Tel: (603) 8882 2255 Fax: (603) 8889 5905 to get final confirmations. Under Section 22 of the Customs Act 1967, the Director General of Customs will determine questions regarding goods classifications. Importers, exporters and delivery agents are advised to purchase the Explanatory Notes To The Nomenclature (Volume 4) and Index To The Nomenclature And The Explanatory Notes (Volume 2) to: World Customs Organization 40 Rue Washington B-1050 Brussels The Notes will assist in the classification of goods, as the notes are not listed under the Customs Duty Order 1996. | |||
Returns, Reimbursement And Remittance | |||
Section 16 of the Customs Act 1967 gives the authority to the Director General of Customs to consider the application of returns of additional monies as custom duties or payment of rental of warehouses or other types of payments listed under the Act should the claim be made in writing within a year after the additional payment was made. Section 18 of the Customs Act 1967 indicates that after the goods are released from the control of customs, no reduction of customs duties will be allowed on the goods for damages or error in the declaration of weight, measurements or value as determined by the officer responsible unless a written notice regarding the claim was made when the goods were before or while under the customs control. Upon released of goods by customs, there will be no reduction in the export duties allowed on any goods for damages, stolen or missing. Section 93 of the Customs Act 1967 allows the reimbursement of 90% of customs duties paid on imported goods. However, for exported goods, certain conditions will have to be applied prior to reimbursements. Section 99 of the Customs Act 1967 specifies that goods declared and the tax imposed on it can be reimburse only if the goods were exported at the Federal level as partial or ingredient for factory production from Federal states and customs duties have also been paid on the goods. This is subject to approval from the Customs Director General at the rate specified. Under the rules currently practiced, any reimbursement up to a 100% on the paid customs duties is allowed. Manufacturers who wish to take this opportunity are required to first seek the approval of the Customs Department and applications can be submitted to the State Customs Director. Under Section 92A of the Customs Act 1967, the definition of re-export used in Section 93,94 and 99 of the Customs Act 1967 includes the movement of goods to license warehouses licensed under Section 65A of the Customs Act 1967 and licensed free tax shops under section 65D of the same act. Director General of Customs can remit all or partial of the customs duty due to unavoidable accidents should the goods go missing, damage or destroyed at any time after arrival at Federal level and before release from customs jurisdictions. Normally, goods kept in licensed warehouses are discovered in terms of its quantity to be less than the ones declared. Due to this, licensed warehouses can be assumed that they have moved the goods without valid authorization and are required to pay the customs duties on the goods removed. However, Customs Director General can remit all or partially the customs duties on the goods discovered to be removed if he is satisfied that the shortage is due to leakage, break in or other unavoidable accidents. | |||
Temporary Imports | |||
Section 97 of the Customs Act 1967 gives the powers to the Customs Director General to allow goods to be temporarily imported without having to pay the Customs Duties on the condition that the value of the mortgage is not less than the value of the customs duties involved, Only guarantee letter issued by local banks are accepted as mortgage. This facility is only given based on Act 21, 21A, 52, 58, 65, 67, 114, 118 and 119 of the Customs Duties Order (Exemption) 1988 while sales tax is given under Act 21, 29, 56, 62, 71, 73, 82, 94, 95 and 96 of Schedule B Sales Tax (Exemption) Order 1980. Temporary imports of machines, tools for the purpose of project implementations are only given to local companies or joint companies having at least a 51% stake of local shareholders that are implementing government projects on the condition that :
Applications for temporary imports will have to be submitted to the state Customs Director’s office for approval where import trades are carried out. Approval is given for 3 months and extension in the period will not be entertained unless for certain periods. Application for extension in the period will have to be submitted to the party that had initially approves the application for the temporary import. Temporary Import facility can be made for jewelry’s meant for exhibitions on the condition that the exhibition is held within a “bonded” area. | |||
Locked Van | |||
Locked Van can be approved by the Customs Department for the purpose of moving goods with duties without having to settle the duties in advance. The vans can be used for the followings :
Applications for the locked van facility can be made to the respective customs stations. | |||
Office Hours | |||
Customs office warehouses and offices are as those listed in Section 11 of the Customs Rules 1977. The office hours can be extended but subject to terms stated in Section 11 Rules 4 to Customs Rules 1977. | |||
Legislation | |||
Legislation and rules guidelines as stated below: -
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Customs Regulations
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