1. TARIFF MEASURES
Structure of the tariff schedule
Malaysia applies a nine-digit tariff nomenclature based on the Harmonized
System following a substantial revision of its HS nomenclature in 1996,
and minor revisions as of 1 January 1997.
Tariff publications
Current information on customs-related matters is available from the
Royal Customs and Excise Department Malaysia, Bock 11, Government Office
Complex,
Jalan Dutu, 50596 Kuala Lumpur.
Tariff rates
| 12 |
MFN treatment is offered to all countries including those that are
not WTO members. The tariff schedule contains ad valorem rates, specific
rates, mixed rates, and alternative rates. Ad valorem rates are the
most common and vary from zero to 300% according to the categories of goods.
About 50 per cent of tariff lines have zero duty. Tariffs exceeding
15% account for more than one quarter of all tariffs. The level of
tariff protection is generally lower on raw materials and increases for
those with value-added content or which undergo further processing, i.e.
leaf tobacco, cigarette products, alcoholic beverages, and some processed
and high-valued food products. In order to protect the local automobile
industry, tariffs for most vehicles range from 42% to 80% for CKD units
and from 140% to 300% for those CBU. |
| 14 |
Chicken imports are regulated by tariff quotas. In-quota tariff
rates are from 50% to 70%, depending on the specific product. |
| 16 |
The Customs Duties (Exemption) Order 1988 provides for various persons/organizations
to be exempted from payment of customs duties on specific goods if certain
conditions are met.
Exemption from import duties is available for raw materials and components
used for the manufacture of goods whose importation is duty free.
Machinery, equipment, components and materials imported for research
and development purposes are eligible for exemption from import duties.
Exemptions are allowed for machinery and equipment used directly in
the manufacturing process as well as for components and materials that
are used in the manufacture of goods for export.
A partial exemption is granted on request for import duties in excess
of 3% on raw materials and components imported for the manufacture of consumer
goods for the domestic markets, provided that these goods are not produced
locally or substitutable for locally produced goods.
Malaysia has abolished the import duties on certain consumer goods including
ready-made clothing, handbags, briefcases, executive-cases and shoes to
promote the country as a shopping destination. |
| 19.1 |
Malaysia is a member of the Global System of Trade Preferences (GSTP)
and has submitted an offer covering tariff reduction on 15 tariff lines. |
| 19.2 |
The Association of South-East Asean Nations (ASEAN) decided in 1992
to establish an ASEAN Free-Trade Area (AFTA) by the year 2008, later brought
forward to 2003 for the six original founding members of ASEAN, Brunei
Darussalam, Indonesia, Malaysia, the Philippines, Singapore, and Thailand.
Vietnam joined in 1995, Laos and Myanmar in 1997, and Cambodia in April
1999. In December 1998, the ASEAN members decided to accelerate the
completion of the ASEAN Free-Trade Area. In this regard, the six
original founding members would advance their tariff reductions to 0-5%
from 2003 to 2002. In May 2000, Malaysia received approval from its
ASEAN partners for an extension of its commitments under AFTA to reduce
tariffs in the automobile sector and selected agricultural products until
2005. Vietnam would implement its tariff reductions to 0-5% by 2003,
and Laos and Myanmar by 2005.
ASEAN member states decided, in December 1998, to expand access to the
1996 Basic Agreement on the ASEAN Industrial Cooperation (AICO) Scheme,
which promotes joint manufacturing industrial activities between ASEAN-based
companies. AICO provides tariff preferences on inputs sourced in
the region.
Malaysia is a participant in the East Pacific Economic Cooperation (APEC)
forum, formed in 1989. The objective of the agreement is to implement
free trade among the member countries by the year 2020, with advanced industrialized
countries realizing the goal by the year 2010. Individual action
plans for each member country were established to outline a path to the
goal. On 10 November 2000, APEC leaders agreed to EVSL (early voluntary
sectorial liberalization) in 15 sectors, that is liberalization before
the agreed goals of 2010 or 2020, respectively. |
2. PARA-TARIFF
MEASURES
Internal taxes levied on imports
| 23.1 |
In conformity with the Sales Tax (Rate of Tax) Order 1997, a sales
tax of 10% is levied on all goods except cigarettes, liquor and alcoholic
drinks subject to a rate of 15%, and fruits, certain foodstuffs, and building
materials assessed at a rate of 5%. Goods exempted from sales tax
are listed under Schedule A of the Sales Tax (Exemption) Order 1980. |
3. PRICE CONTROL
MEASURES
Antidumping measures
| 34.2 |
Antidumping duties in force at the end of the year 2000 apply to corrugating
medium paper in rolls (from Australia, the European Communities, Indonesia,
and Korea), self-copy paper in rolls and sheets (from the European Communities,
Indonesia, and Japan), PVC floor covering in rolls (from Korea and Thailand),
and plaster/gypsum board (from Thailand). |
4. FINANCE
MEASURES
| 45 |
A requirement to settle all imports in foreign currency was introduced
on 1 September 1998. |
| 49 |
Proceeds from exports must be repatriated according to the payment
schedule specified in the commercial contract, but no longer than six months
after the date of exportation. Export proceeds must be received only
in foreign currency. |
5. AUTOMATIC
LICENSING MEASURES
Automatic licence
| 51 |
Importation of selected industrial products is subject to automatic
import licensing administered by Ministry of International Trade and Industry. |
Import monitoring
| 52 |
The automatic licensing requirements on imports of selected heavy machinery
was introduced in October 1997 as a temporary monitoring mechanism in accordance
with Malaysia's trade, development and financial needs.
Sensitive product categories may be imported if an automatic import
licence has been issued by the relevant authority involved in the administration
of security. This surveillance measure applies to such imports as
safety helmets, all single and multi-colour copying machines, apparatus
or equipment for the brewing of beer in homes, chassis and bodies of motor
cycles and passenger cars, road tractors for semi trailers, apparatus and
equipment to be connected to a public telecommunication network, films
and tapes for magnetic recorders, automatic cassette and cartridge loaders,
high speed duplicators, cement, wheat flour, and liquid milk. |
6. QUANTITY
CONTROL MEASURES
Non-automatic licensing
Licensing under the authority of the
Royal Customs and Excise Department Malaysia,
Block 11, Government Office Complex, Jalan Dutu,
50596 Kuala Lumpur.
Under the Customs (Prohibition of Imports) Order
1998 P.U. (A) 210/98, quantitative restrictions are imposed on about 17
per cent of Malaysia's tariff lines for protection of local industries
and reasons of security and environmental grounds.
| 61.2 |
Under the authority of the Ministry of International Trade and
Industry, import licences for CKD and CBU motor vehicles are allocated
only to motor vehicle assemblers and franchise holders.
Imports of firearms and ammunition are administered by the Royal Malaysian
Police. Import licences are granted to licensed arm dealers.
Under the Poisons Act 1952 (Revised 1989) and the Sale of Drugs Act
1952 (Revised 1989), all substances listed in the Poison List and medical
products containing poison require licences prior to importation.
The Drug Control Authority, Ministry of Health, issues licences only to
registered pharmacists. |
| 61.6 |
The Ministry of International Trade and Industry administers imports
of general goods. Import licences aimed at according protection of
a temporary nature to local manufacturers are required for natural barium
sulphate, activated clay and bleached earth, steel bars including wire
rods, steel billets, plastic and paper insulated wire and cables, and batik
sarong.
With effect from 29 April 1999, importation of cold rolled coil
and hot rolled flat sheet products require an import licence from the Ministry
of International Trade and Industry for monitoring reasons.
Imports of rice milling machinery require an import licence from the
Ministry of Agriculture.
Importers of oil palm products including oil palm fruit and oil palm
planting materials must obtain a licence from the Palm Oil Registration
and Licensing Authority.
Applications for import licences to import saw logs, round logs and
half squared logs are processed by the Malaysian Timber Industry Board
prior to the final approval by the Malaysian Customs Department. |
| 61.7 |
Effective 10 February 2000, approval is required to import 19 chemicals
covered under the 1988 Convention Against Illicit Traffic in Narcotics,
Drugs, and Psychotropic Substances. Applications for import licences
to import pharmaceuticals must be made to the Pharmaceutical Division,
Ministry of Health.
In conformity with the Fish Marketing Regulation 1973, fish and fish
products may be imported subject to an import licence from the Fisheries
Department, Ministry of Agriculture.
Unregistered pesticides may be imported for research and educational
purposes with an import permit issued by the Pesticides Board, Department
of Agriculture.
The Department of Veterinary Services, Ministry of Agriculture, is the
enforcement authority of licensing of all animal and animal products imported
into the country. In addition, licences from the Department of Wildlife
Protection and National Parks are required for the importation of wild
animals and corals.
Under the Plant Quarantine Regulations 1981, import permits from the
Department of Agriculture are required for plant and planting materials
such as growing media, organic fertilizers, soil, living or dead organism,
plant for consumption or processing, and plant products.
Licences to import liquor, tobacco and denatured spirit may be obtained
from the Royal Customs and Excise Department.
Imports of CFC are regulated in accordance with the Montreal Protocol
and require an import licence from the Ministry of International Trade
and Industry.
Any import of radioactive materials, nuclear materials, prescribed substances
and irradiating apparatus requires an approval from the Atomic Energy Licensing
Board. Under the Atomic Energy Licensing Act 1984, the importation
is regulated as a protective measure and for monitoring reasons.
As a party to Basle Convention, Malaysia enforces prior approval requirements
for imports of toxic and hazardous wastes. Prior approvals are obtained
from the Director-General of the Department of Environment to ensure environmentally
sound management of hazardous waste and to protect the Malaysian environment
from illegal trafficking.
Applications for prior licences or permits to import explosives, fireworks,
any device capable of producing the sound of a siren, and bulletproof vests
must be made to the Royal Malaysian Police.
The Telecommunication Department, Ministry of Energy, is conferred the
power to issue import permits for all types of telecommunication and radiocommunication
equipment.
All goods from Israel, Serbia and Montenegro require an import licence
from the Ministry of International Trade and Industry. |
Quotas
| 62.1 |
Limits exist on imports of few products. With the purpose of
protecting local producers, round cabbages and unroasted coffee beans are
subject to quotas with import permits granted to local qualified importers
and coffee manufacturers by the Federal Marketing Authority. The
importation of raw sugar is subject to quotas, with import licences being
granted to sugar millers and refiners. The Ministry of Primary
Industry issues import licences for unmanufactured tobacco under import
quota. |
Prohibition
| 63.1 |
Absolute prohibitions are introduced on grounds of public morality,
public order, public safety, and protection of the health and life of persons
and animals. Publications which are incompatible with public moral
and products, which bear images offending religious faith, are also prohibited. |
| 63.7 |
Importation of unprocessed food and planting materials from tropical
America and Central Africa is prohibited under the Plant Quarantine Act.
The Department of Veterinary Services, Ministry of Agriculture, may
temporarily prohibit the importation of certain animal products or products
of animal origin intended for human or animal consumption for consumers'
health protection reasons. |
Export restraint arrangements
| 66.4 |
Export licences for textiles and clothing products to countries that
apply import quotas under the WTO Agreement on Textiles and Clothing are
issued up to the limit allowed to the importing country. |
7. MONOPOLISTIC
MEASURES
Single channel for imports
| 71.1 |
In consideration of the agreement to perform the management of the
national rice stockpile, the Padiberas Nasional Berhad (BERNAS) has been
given the exclusive right to import rice into Malaysia for a period of
15 years. |
8. TECHNICAL
MEASURES
Standards and technical regulations are the responsibility
of
Standards and Industrial Research Institute of
Malaysia,
(SIRIM),
Persiaran Dato Menteri,
Section 2, P.O. Box 7035,
40911 Shah Alam, Selangor.
| 81.1 |
The procedures for the development of standards are established in
the Standards of Malaysia Act 1996. In addition to issues covered
by this act, product standards are the basis for newly adopted technical
regulations other than sanitary and phytosanitary measures applied to agricultural
products.
Authorized food additives are specified in the Malaysian Food Regulations
1985.
Under the ASEAN Consultative Committee on Standards and Quality (ACCSQ)
programme, member countries have agreed to align standards for some electrical
and electronic domestic appliances, and rubber products within an agreed
time-frame.
Within APEC, Malaysia is developing an action plan to align its standards
with international standards in selected priority areas (electrical and
electronic appliances, food labelling, plastic and rubber products).
Malaysian standard specifications are obligatory to ensure the safety
or the quality of the products concerned, i.e. protective helmets for vehicle
users, and Portland cement.
All imported beef and poultry products must originate from facilities
which have been approved by Malaysian authorities as "halal", or acceptable
for consumption by Muslims.
Registration of pesticides is mandatory under the Pesticides Act 1974.
Under the Malaysian Sale of Drugs Act 1952 (Revised 1989), medical products
are required to be registered by the Drugs Control Authority.
Food products containing the active ingredient chlordane will not be
registered when their registration period expires.
The Department of Electricity & Supply under the Ministry of Energy,
Telecommunication and Post is responsible for the issuance of a certificate
of approval for the import of electrical equipment specified in the 4th
list of Customs (Prohibition of Imports) Order 1998.
Oil palm fruit and oil palm planting material require a quarantine certificate
from the Department of Agriculture, Ministry of Agriculture.
Specific veterinary certifications, sanitary and phytosanitary requirements
apply to the importation of milk and milk products. |
| 81.2/3 |
Electrical equipment shall be marked or labelled as described in the
Electricity Regulation 1994. |
| 81.3 |
Under the Food Act (1983) and Food Regulation (1985), every package
containing food for sale should include the designation and weight of the
product, as well as information on the manufacturer (name and address,
country of origin), and name of the importer. The label must also
indicate the presence of beef, pork, edible fat, oil, alcohol, food additives,
vitamins or certain minerals. The information has to be in Bahasa
Malaysia or English.
On every container of cigarettes must be printed "Warning by Government
of Malaysia smoking is hazardous to health".
Prepacked drugs must be labelled in English or Bahasa Malaysia indicating
the substances and its components.
Food labels must indicate the use of additives and shelf life. |
| 81.3/4 |
Packaging and labelling requirements are governed by the Food Act (1983)
and the Food Regulation (1985) as well as the Price Control (Labelling
by Manufacturers, Importers, Producers and Wholesalers) Order 1990. |
| 81.5 |
Round logs and similar products are required to be inspected by the
Forestry Department.
Imports of chicken parts are regulated through sanitary controls. |
| 81.9 |
Palm oil shall not be carried in ships tanks previously carrying cargoes
listed in the banned list as and when specified by the authority. |
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