Determination of taxes and fees on imports into Malaysia
Import duty
After determining the HS code of the goods, the importer can identify the import duty applicable to those goods. Import duty is calculated as a percentage of the customs value of the goods.
For Vietnamese goods imported into Malaysia, businesses currently have 10 tariff options, each corresponding to a certain tariff rate and conditions for eligibility. Importers will choose the most appropriate and beneficial tariff scheme based on the specific conditions of the goods. Specifically:
- MFN tariff: This is the tariff that Malaysia applies to goods from WTO members. The rate is determined by Malaysia but must comply with its WTO commitments, and it applies to goods from WTO members without any origin-related conditions. Vietnam is a WTO member, so Vietnamese goods automatically benefit from this tariff without having to satisfy any additional conditions.
- Tariffs under the FTAs to which both Vietnam and Malaysia are parties: As of the end of 2024, Vietnam and Malaysia shared 9 FTAs, including:
(1) ASEAN–Australia–New Zealand Free Trade Agreement (AANZFTA),
(2) ASEAN–China Free Trade Agreement (ACFTA),
(3) ASEAN–India Free Trade Agreement (AIFTA),
(4) ASEAN–Japan Comprehensive Economic Partnership (AJCEP),
(5) ASEAN–Korea Free Trade Agreement (AKFTA),
(6) ASEAN Trade in Goods Agreement (ATIGA);
(7) ASEAN–Hong Kong, China Free Trade Agreement (AHKFTA);
(8) Regional Comprehensive Economic Partnership (RCEP); and
(9) Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Under each FTA, Malaysia grants special preferential tariffs to goods from FTA member countries, provided that the imported goods satisfy the applicable rules of origin and possess the corresponding certificate of origin under the relevant FTA.
Businesses may check tariff rates for imported products (by product name or HS code) at the following link: https://ezhs.customs.gov.my/.
Other taxes
- Sales Tax: Applied to both domestically produced and imported goods. The rate is usually 5% or 10%, depending on the type of goods.
- Excise Duty: Applied to luxury, non-essential, and health- or environment-related goods, including beer, alcohol, tobacco, motorcycles, mahjong, etc. Excise duty may be calculated either as a percentage of value or as a fixed amount per unit of goods.
Source: Center for WTO and International Trade - VCCI
