Logistics, Trade Administration and Supply Chain

The Customs Duties (Exemption) [No. 2] Order 1988 provides for various persons or organization to be exempted from payment of customs duties on specified goods imported by them and subject to the conditions contained therein as specified. Powers to Exempt Customs Duties and Goods' Value Assessment Section 14 of the Customs Act 1967 provides for the Finance minister to exempt specific persons or organization or classes of goods from Customs duties. For the purpose of determining the import or export duties payable on ad valorem basis, goods will be valued in accordance with the definition of value in Section 2 of the Customs Act 1967. Briefly, the price envisaged by the definition of value is the price at which the goods are sold freely in the open market by the seller to any buyer not associated in business with him. Thus, if the seller sell or offers to sell his goods to any independent buyer, then the price which the seller charges for the said goods will be accepted as the open

Import/export licences are issued by the Ministry of International Trade and Industry (MITI) on behalf of the Director-General of Customs. For the convenience of importers/exporters, MITI has set up various branch offices and the areas covered by them: Pegawai Ekonomi Pulau Pinang who covers all Northern States and Teluk Intan Pengarah Cawangan Perdagangan, Kuching for Sarawak state Pengarah Cawangan Perdagangan, Kota Kinabalu for Sabah state Penolong Pengarah Cawangan Perdagangan Johor Bahru who covers Malacca and all Southern States Penolong Pengarah Cawangan Perdagangan Kelantan covering states of Kelantan and Terengganu Importers/exporters from area mentioned above should submit their applications to the respective branch office. Importers/exporters from areas other than those mentioned above should submit their applications to the following: The Secretary-General of the Ministry Domestic Trade Division MITI Block 10, Government Offices Complex Jalan Duta 50622 Kuala Lumpur Applica

Where duties are applicable on imported goods all relevant duties must be paid before such goods can be released for consumption. Where export duties are liable such duties must be paid before the goods are allowed to be exported. The following types of duties are liable on goods imported into this country: Import Duties Sales Tax Import Duty The rate of import duty varies according to the type of goods imported. The rate applicable to each category of goods is indicated in columns no. 4 of the First Schedule of the Customs Duties Order 1988. Sales Tax The rate of Sales Tax liable as stated in the Sales Tax (Order) 1977. Sales Tax have three rates of duty at 5%, 10% and 15% on gross value on all goods imported except those which are exempted. Goods exempted from Sales Tax have listed in the Sales Tax (Exemption) Order 1988. The following goods liable to a Sales Tax of 15% are as follows: Beer, Ale, Stout and Porter, Intoxicating beverages falling under tariff code headings from 2205.10

Goods may be imported or exported by land, air or sea only at prescribed place as shown in the First Schedule of the Customs Regulation 1977 Declaration All goods to be imported or exported whether or not subject to import/export duties must be declared in writing on prescribed customs forms. Customs 1 is for duties must be declared in writing on prescribed forms. Customs 1 is for goods to be imported and Customs 2 is for goods to be exported. All declarations should indicate a full and true account of the number and description of packages, of the description, value, weight, measure or quantity of all such goods. In the case of goods being imported, the country of origin should be clearly stated and in the case of goods to be exported, the final destination. Declarations must be submitted to the Customs station at the place where the goods are to be imported or exported. Customs Agents The Customs Act provides for the importers and exporters to appoint agents to act on their behalf. O