Customs Exemptions and Assessments of Goods

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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 market value.

On the other hand, if the seller does not sell in open market but restricts his sales to agents, sole distributors or associated companies, the selling price cannot be accepted as an open market value. Such prices may have to be adjusted to conform with the definition of the value. Such price adjustment will be taken into consideration, the relationship between the buyer and seller and the terms and conditions under which the sales are being effected.

The authority to value or assess goods is provided under Section 13 of the Customs Act 167. All inquiries on the valuation and assessment of goods or price adjustment on goods imported by agents, sole distributors or associated companies should be directed to :

Timbalan Ketua Pengarah Kastam
Cawangan Penilaian
Ibu Pejabat Kastam Diraja Malaysia
Aras 6 Utara Komppleks Kementerian Kewangan
No. 3 Persiaran Perdana, Presint 2
62956 Putrajaya.

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