with its liberal and outward-oriented trade policies, Malaysia trades with
over 200 countries.
Controller of Foreign Exchange, who is also the Governor of the Bank
Negara Malaysia (the Central Bank), administers foreign exchange
exchange control regime is liberal and applies uniformly to
transactions with all countries, with the exception of Israel, Serbia
and Montenegro; special restrictive rules apply to transactions with
proceeds are required to be repatriated in accordance with the
prescribed manner and the payment schedule as specified in the sales
contract, which currently is limited to six months from the date of
export. The export proceeds in foreign currency other than the
restricted currencies repatriated must either be sold for Ringgit or
retained in a foreign currency account, subject to overnight limits of
between US$1 million and US$10 million.
are required to complete Form KPW X for each shipment exceeding
RM100,000 f.o.b and submit quarterly statements to certify the receipt
of all export proceeds. However, exporters who declare their
export through EDI (Electronic Data Interchange) system are not
required to submit Form KPW X, with effect from 1 January 1997.
and Payment Conditions
terms: Exporters should review their terms for sale, especially with
respect to firms dependent on domestic demand. Minimum terms are
sight drafts, with letters of credit being the recommended terms.
Credit terms of 60 to 90 days often provided.
Malaysian tariff nomenclature is in accordance with the International
Convention on the Harmonized Commodity Description and Coding System
(HS) and the Standard International Trade Classification (SITC).
tariff schedules apply to all items, with the exception of certain
goods, mainly petroleum products and live animals.
exception also extends to goods either manufactured locally or abroad
that are transported between Peninsular Malaysia, Sabah and Sarawak.
goods are subjected to import duties ranging from zero to 30 percent.
Higher rates apply to luxury goods, automobiles, tobacco, alcoholic
beverages and processed and high-value food products.
General of Customs, Royal Customs and Excise Department,
Block 11, 6th
Floor, Jalan Duta, Kuala Lumpur 50596,
651 6088 Fax: (603) 651 2548
adopted the World Trade Organisation’s (WTO) procedures for valuing
imports, effective January 1, 1998.
procedures determine the value of the goods based on the transferred
price, rather than the previous Brussels Convention method of
accessing the open market value of the goods.
the event where duties are applicable on imported goods, all relevant
duties must be paid before such goods can be released. Where
export duties are leviable, such duties must be paid before goods are
allowed to be exported. The rates of import / export duties on
different categories of goods are as indicated in the Customs Duties
rates of sales leviable are as stated in the Sales Tax (Rate of Tax)
Order 1972 and the Sales Tax (Rate of Tax) Order 1997. Three
rates of tax at 5%, 10%, or 15% are leviable on the gross value of all
goods imported except those which are exempted under the Sales Tax
(Exemption) order 1988.
following goods are subject to a sales tax of 15% ad valorem:
ale, stout and porter, intoxicating beverages, cigars, cheroots,
cigarillos, cigarettes and beedies.
Duties, Subsidies and Countervailing Duties:
Countervailing and Anti-Dumping Act was passed in 1993. Under
this law, provisional anti-dumping duties usually range between zero
and 99 percent. As a member of the WTO, Malaysia is required to
adhere to the WTO Conventions covering Anti Dumping Duties, Subsidies
and Countervailing Duties.
STANDARD, REGULATIONS AND REQUIREMENTS
adheres to the WTO’s “Standard Code” on Technical Barrier To
Trade. As the appointed standards development agency, SIRIM
Berhad published Malaysian Standard (MS) and provides quality
certification services. Today, more than 2600 MS are available.
About 200 new MS are published every year. The current MS are
also reviewed every five years or earlier whenever required so that it
can be updated to the latest technological development. Many of
these MS are implemented in product certification, quality management
system and environmental management system certification.
to use the SIRIM Quality Mark on products or services is given to
manufacturers and companies whose products and services consistently
conform to the relevant MS and whose factory has adequate quality
control procedures. To ensure compliance to the requirement of
the Mark, SIRIM periodically tests the product, makes both regular and
unannounced visits to factories and regularly checks their quality
control and procedures. Implementations of new standards are
constantly being added to the list.
Berhad has established ISO 9000 and ISO 14000 standards. There
is a high level of interest and awareness of the ISO 9000 and ISO
14000 standards in Malaysia both in the government and private sectors
including and manufacturing industry.
present, SIRIM Berhad has signed MOU’s and is affiliated with the following
overseas certification bodies: