Malaysia Customs

TNETS Global Customs Clearance Services in Malaysia

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Customs Clearance in Malaysia

How does Customs Clearance in Malaysia work?

Customs Clearance in Malaysia - A Quick Guide

Step 1: Choose Clearance Method

All goods imported into Malaysia must be declared through one of the following methods:
1. Appointed Customs Agent such as TNETS Global
2. Self-Declaration (AEO Program)
3. Direct Importer

Step 2: Classification of Goods

Obtain the correct tariff code for the goods to determine if they are subject to duty / SST.
Check with TNETS Global if in any doubt

Step 3: Check Control and Restrictions

Determine if the goods are controlled or prohibited for import
Check with TNETS Global for any required Import Permits (licences) / Approvals from Other Government Agencies (OGAs)

Step 4: Undertaking & Document Preparation

Make a truthful declaration of imported goods using Customs Form No.1 (K1) electronically through TNETS Global.
Submit an import licence if required along with the declaration.
Provide supporting documents such as Bill of Lading, Invoice, Packing list, etc where required.

Step 5: Inspection of Goods

Authorities may inspect consignments to ensure compliance with laws and regulations.
TNETS Global’s Customs Runner Service in Malaysia ensures that arrival of goods is coordinated with physical availability of documents at checkpoint to avoid delays

Step 6: Payment of Duties / SST

Duties / SST must be paid before release of goods, either at the counter, by bank transfer or through online e-payment.
TNETS Global may either pay on yoiur behalf or advise you of amount to be paid

Step 7: Customs Approval

Goods can be approved for release after duty / SST payment and obtaining necessary permits.
TNETS will notify you once goods are cleared and can be trucked out

Step 8: Customs Clearance

Customs clearance is granted once all requirements are met and actions are complied with

Step 9: Document Retention

Keep importation records in Malaysia for seven years, as required by law.
TNETS Global maintains both electronic and physical records and these are available for retrieval at any time

When you appoint TNETS Global as your customs partner for Malayia, we perform each of the steps above and keep you informed throughout the process!

Customs Clearance Processing Times in Malaysia

The customs clearance process in Malaysia generally takes 2 to 5 working days.

Breakdown of estimated processing times:

Normal customs clearance: 2-3 business days
Pre-Arrival Processing (PAP): 1-2 business days
Express clearance: Same day

What documents do I need for Customs Clearance in Malaysia?

Commercial Invoice

The commercial invoice is a critical document.

It contains all the financial conditions of the buyer-seller agreement, including the shipping terms required for customs clearance.

In some cases, the importer can use a pro-forma invoice instead of a commercial invoice as an official document.

Customs officials utilise the information on the invoice to assess the taxes and duties applicable to your cargo.

Packing List

The packing list is part of the shipping documentation and contains precise information about the products.

The freight forwarders will utilize this list to inspect and trace every item in your shipment as it comprises the weight, size, safety measures, and packaging for the cargo.

Exporters may sometimes integrate the above two documents into a single combined document called a CIPL (commercial invoice packing list).

Transport Document

The transport document may be either an Airwaybill for air freight, a Bill of Lading for ocean freight, a Consignment Note for an express shipment or parcel, or a Delivery Order for road freight, and is what the shipper and freight forwarder use to confirm receipt of goods for shipping.

Either the carrier or a freight forwarder will issue a bill of lading to you as the exporter.

This further guarantees the legal receipt of your cargo and contains precise information about the shipping destination, the products you are shipping, and how you wish them to be handled.

Other documents you might need for Customs Clearance in Malaysia

Import Licence

Controlled goods require proper authorisation (advance notification, licence or certificate approval) from Other Government Agencies (OGA) before they may be imported into Malaysia.

Alternatively you can check with TNETS Global in Malaysia for more information on what licenes may be required for your goods.

If the item is subject to control, you may check directly with TNETS Global on the licensing requirements.

Product Registration

Certain products need to be registered with a specific Malaysian authority before import. This ensures they comply with Malaysian safety and quality standards.

Examples include:

Electrical and electronic equipment (SIRIM) [Department of Standards Malaysia]
Medical devices (Medical Device Authority) [Medical Device Authority Malaysia]
Construction materials (Construction Industry Development Board – CIDB) [CIDB Malaysia]

Product Testing and Certification:

Some products require testing by accredited laboratories in Malaysia to verify they meet Malaysian standards.

Based on successful testing, a Certificate of Conformity might be issued by a Malaysian Certification Body. This acts as proof of compliance for customs clearance.

Product Inspection:

In some cases, the authorities might require an inspection of the product at its origin (overseas) before shipment to Malaysia. This verifies the product matches the information provided and meets compliance requirements.

TNETS Global’s team in Malaysia has a team of specialists who assist with navigating their way through the product approval process, including liaising with the approval bodies such as SIRIM.

Export Licence

Goods and technology that meet the technical specifications described in the Strategic Goods Control List are subject to controls under the Strategic Trade Act 2010.

The Strategic Goods Control List is found on the Royal Malaysian Customs Department website here.

The items are categorized as follows:

nuclear materials, facilities and equipment;
special materials and related equipment;
materials processing;
electronics;
computers;
telecommunications and information security;
sensors and lasers;
navigation and avionics;
marine;
aerospace and propulsion; and
military items

If in doubt please check with TNETS Global for more guidance.

Certification of Origin (COO)

A Certificate of Origin (COO) states where the items originate, were processed or obtained from ensuring that the export or import is lawful and that export or import duties and taxes are correctly calculated.

The consulate or chamber of commerce can sometimes issue or certify this document. For claiming duty preferences, it’s usually the national customs body in the country of origin which issues the COO.

The exporter is responsible for delivering the certificate of origin following the rules and regulations of the destination country.

Working with experienced customs brokers makes international shipping easier.

Customs brokers are registered and licenced professionals who can assist with customs clearance and guarantee that you have the proper documents for your freight shipment.

Purchase Order

A purchase order is a formal declaration that you have received an order.

This document contains information about the transaction, including the parties involved, the products, and the transaction date.

Malaysia Certificate of Origin

Obtaining a Malaysia Certificate of Origin (CO) can provide several valuable benefits to an exporter, especially when dealing with international trade transactions. A Certificate of Origin is a document that certifies the origin of goods and is often required by customs authorities in the importing country to determine eligibility for preferential trade agreements, tariff reductions, and other trade-related benefits. Here’s why obtaining a Malaysia Certificate of Origin can be advantageous for exporters:

1. Preferential Trade Agreements (PTAs) and Free Trade Agreements (FTAs):

Many countries have established trade agreements with Malaysia that offer preferential tariffs or trade benefits to goods originating from Malaysia. These agreements aim to reduce or eliminate tariffs, thereby making Malaysian goods more competitive in those markets. To avail of these benefits, exporters need to prove the origin of their goods through a Certificate of Origin.

2. Reduced Tariffs and Duties:

A Certificate of Origin can help exporters reduce or eliminate customs duties, taxes, and other fees imposed on their goods by the importing country. This can significantly improve the cost competitiveness of their products in international markets, potentially leading to increased sales and market penetration.

3. Market Access:

Some countries require a Certificate of Origin to be submitted alongside other import documentation. Without this document, goods might face delays at customs, leading to potential supply chain disruptions. Having a Malaysia Certificate of Origin can help ensure smoother customs clearance, facilitating quicker access to target markets.

4. Enhanced Credibility and Trust:

A Certificate of Origin adds credibility to the claim that the goods being exported indeed originate from Malaysia. This can be especially important in industries where product quality, safety, and compliance with regulations are crucial. Customers and importers are more likely to trust goods accompanied by proper documentation.

5. Conformity with International Regulations:

International regulations and trade agreements often require proper documentation to prove the origin of goods. Failing to provide a valid Certificate of Origin can lead to non-compliance and potential legal issues. Having the necessary documentation in place helps exporters adhere to these regulations.

6. Competitive Advantage:

Exporters with a Certificate of Origin may have a competitive advantage over those who do not possess one. This advantage is particularly relevant in markets where buyers prefer or require proof of origin for the products they purchase.

7. Risk Mitigation:

In case of disputes or audits related to the origin of goods, having a valid Certificate of Origin can serve as a critical piece of evidence to support the exporter’s claims. This can help mitigate potential legal or financial risks.

8. Access to Government Incentives:

Some governments offer incentives to exporters who can demonstrate the origin of their goods. These incentives may include financial support, grants, or other forms of assistance aimed at promoting international trade.

In conclusion, obtaining a Malaysia Certificate of Origin can offer exporters significant advantages by ensuring compliance with trade agreements, reducing tariffs, and enhancing credibility in international markets. It plays a pivotal role in helping exporters tap into the benefits of preferential trade agreements, improve their competitiveness, and navigate complex international trade regulations more effectively.

Detailed Breakdown Of The Import Customs Clearance Process In Malaysia

Pre-Arrival Processing (PAP)

The importer or the importer’s representative (cargo agent or customs broker) should submit an import declaration before goods arrival in order to expedite clearance.

Regardless of whether or not they are subject to customs duties, all imported goods must be declared in Customs Form K1.

Each declaration must indicate the specific number of products included in the shipment. The declaration must also include a detailed description of the goods, including their packaging, value, weight, dimensions, country of origin and final destination within Malaysia.

Arrival of Goods

Goods and will be presented by the haulier to Royal Malaysian Customs Department (RMCD) for inspection upon arrival in port. Shipments are selected for inspection by exception.

Documents will be presented to Royal Malaysian Customs Department (RMCD) by the haulier or by the ‘runner’ working on behalf of the haulier, the cargo agent or the owner of the goods.

Malaysian Customs will match the cargo manifest with the goods and raise any queries.

Customs Declaration

If the goods were not declared prior to arrival then a customs declaration form K1 must be submitted with details of the goods.

Each declaration must indicate the specific number of products included in the shipment.

The declaration must also include a detailed description of the goods, including their packaging, value, weight, dimensions, country of origin and final destination within Malaysia.

Assessment of Duties and Taxes

The Malaysia Customs Department determine the amount of import duties and taxes based on several factors:

HS code is used to classify the product type.
Value of goods, including freight and insurance fees, help customs to determine the duties and taxes and to clear your shipment. This is known as the CIF method.
The goods description on the commercial invoice, including the product’s end-use and country of manufacture.
The Incoterms on the commercial invoice define the agreement between sender and receiver about who pays for shipping costs, including taxes and duties.

Payment of Duties and Taxes

Pay duties and import SST taxes to RMCD. These can be settled by bank transfer.

Once duties and import SST has been settled then goods can be released from customs and are free to circulate within Malaysia.

Overview of the commonly used Customs Clearance forms in Malaysia

Form K1

Customs Form No. 1, also known as K1 or the Import Declaration Form, is an official document necessary for bringing goods into Malaysia. It details information about the goods being imported, including descriptions, quantities, values, and their country of origin.

The K1 Form serves several key purposes:

Customs Compliance: It streamlines customs clearance procedures, ensuring imported goods meet Malaysian import regulations and appropriate duties and taxes are paid.
Trade Statistics: Data collected from the K1 Form contributes to trade statistics, offering valuable insights into Malaysia’s import activities.
Import Documentation: Importers must present evidence of imported goods, facilitating transactions with consignees and financial institutions.

Responsibility for completing the K1 Form lies with the importer or their authorized representative, who must ensure accuracy and provide all necessary information.

Submission of the form is mandatory for all imports into Malaysia, regardless of transportation mode (air, sea, or land), typically before the goods arrive in the country.

To obtain the K1 Form, individuals can access it via the Royal Malaysian Customs Department (JKDM) website or authorized customs agents, and it can be filled out either electronically or manually.

Once completed, the form, along with any supporting documents, must be submitted to JKDM for verification and processing. Submission can be done electronically through JKDM’s Customs Integrated System (CIS) or manually at designated customs offices.

Non-compliance, such as failing to submit the K1 Form or providing incorrect information, may lead to penalties, fines, and potential legal action. It’s crucial for importers to adhere to these requirements to avoid such consequences.

Form K2

Customs Form No. 2, known as K2 or the Export Declaration Form, is a necessary document for sending goods out of Malaysia. It provides detailed information about the goods being shipped, including descriptions, quantities, values, and the destination country.

The K2 Form serves several key purposes:

Customs Compliance: It helps with customs clearance, making sure that the goods being exported meet Malaysian export rules and that the right duties and taxes are paid.
Trade Statistics: Information gathered from the K2 Form gives valuable insights into Malaysia’s export activities.
Export Documentation: Exporters need to show proof of the goods they’re sending out and make transactions easier with consignees and financial institutions.

Responsibility for completing the K2 Form lies with the exporter or their authorized representative, who must make sure all details are correct. This includes signing the form.

The K2 Form is mandatory for all exports from Malaysia, no matter how the goods are being transported (by air, sea, or land), and it’s usually done before the goods leave.

To get the K2 Form, you can download it from the Royal Malaysian Customs Department (JKDM) website or get it from authorized customs agents.

You can fill it out electronically or by hand. Once filled out, the form and any necessary documents must be sent to JKDM for checking and processing. You can send it electronically through JKDM’s Customs Integrated System (CIS) or manually at specific customs offices.

Not following the rules, such as not sending the K2 Form or giving wrong information, can lead to fines, penalties, or even legal action. It’s important for exporters to stick to these requirements to avoid any problems.

Form K3

The K3 form, also referred to as the Application or Permit to Transport Goods throughout the Federation, is a vital document required for moving goods within Malaysia.

It has been officially issued by the Royal Malaysian Customs (RMC) to legalise the transportation of goods across the country.

The primary aim of the K3 form is to regulate and monitor the movement of commodities within Malaysia.

By implementing this system, the Malaysian government aims to ensure compliance with customs laws and deter illegal activities such as smuggling and tax evasion.

Enhanced Efficiency: The K3 form simplifies administrative processes and facilitates the smooth movement of goods within Malaysia.

Instead of relying on manual paperwork, logistics companies can electronically submit the form, saving time and effort.

This digital submission enables faster processing, leading to quicker goods clearance at checkpoints.

By providing detailed descriptions of the transported products—including their nature, quantity, value, and origin—logistics providers assist customs authorities in efficiently analyzing the goods and expediting the clearance process.

The ability of the K3 form to request specific information facilitates logistical planning and reduces the risk of delays or errors during shipment.

Businesses are required to furnish accurate and comprehensive details about the transported items—such as their nature, quantity, value, and origin—using the K3 form.

This aids customs officers in verifying the legitimacy of the goods and ensuring adherence to relevant laws and regulations.

Consequently, this promotes ethical business practices and safeguards local industries.

The K3 form is crucial for ensuring timely payment of taxes and tariffs.

By providing transparent information, logistics companies can accurately calculate and settle the applicable taxes and levies, thereby fostering economic growth, ensuring fair competition among enterprises, and preventing revenue loss for the government.

Proactively obtaining the K3 form allows logistics organizations to address potential issues that may arise during transportation, reducing the risk of delays and penalties for non-compliance.

Serving as a preventive measure, the K3 form ensures a seamless and uninterrupted flow of goods across the nation.

Additionally, customs officials have the authority to conduct inspections to verify the accuracy of the data provided on the K3 form.

By adhering to customs regulations and submitting the necessary paperwork, including the K3 form, logistics firms demonstrate their commitment to compliance, thereby fostering a positive relationship with customs officials and minimizing the likelihood of future disruptions.

To obtain a K3 form, logistics businesses must submit an application to the Royal Malaysian Customs Department (RMCD), providing comprehensive information about the goods, including their description, quantity, price, and intended destination within Malaysia.

Accuracy is paramount to avoid discrepancies that could lead to delays or penalties.

Upon receiving the application, the RMCD will review the information and, if all requirements are met, issue the K3 form.

The approved form must be printed and prominently displayed on the delivery truck, facilitating easy verification by customs agents during inspections.

The introduction of the K3 form has significantly improved the efficiency and coordinated transportation of goods within Malaysia.

This document serves as a critical tool for logistics organizations, streamlining the application process, ensuring compliance with regulations, and minimizing disruptions.

Adhering to customs requirements and obtaining the K3 form in advance not only facilitates smoother trade operations but also demonstrates a commitment to ethical and legal business conduct.

By embracing the K3 form, logistics firms can navigate the challenges of goods transportation in Malaysia with confidence and efficiency.

Form K8

K8 is customs declaration form gazette by the government for the movement of goods between bonded areas. This applies to both import and exportation to and from bonded area.

Examples of where Form K8 might be used are as follows:

Container discharged at Pasir Gudang and then Form K8 is used to move the goods by rail from Pasir Gudang to Port Klang without duty being paid. On arrival at Port Klang Form K1 is used to clear the containers and pay the duty.
Container transhipped from one port to another port. Using Form K8 the container can be moved from Westport to Northport or vice versa without paying duty.

K8 application form for customs clearance is submitted by import and export application agents.

RMC information system issues a registration number upon receiving the K8 application and writes the same information from the K8 form to an RFID tag.

Agents login to the Web system and register the initial data to the eSeal RFID tag.

Agents print out the K8 form information.

According to RMC’s instructions, agents bring the eSeal RFID tag and K8 form printout to RMC.

Agents seal the container with the eSeal RFID tag in the presence of RMC officials.

RMC registers the completion of the container sealing.

The driver of the container carrier passes through check points, and unseals and unlocks the container at the last check point.

Form K9

Form K9 is the Royal Malaysian Customs Department for for requisition to remove dutiable goods.

e.g. for sale of dutiable goods from a duty free factory or warehouse.

When using form K9 the following codes are to be used depending on the situation:

Transaction Type Code (Transaction types)

E LMW Local Sales
LS LMW Local Sales with Preferential Tariff
LX LMW Local Sales with Exemption

Sale of GPB finished goods to the local Malaysia market is subject to import duty and sales tax under the Customs Duty Order 2017.

GPB companies can of course apply to pay import duty at the SAME rate as ATIGA according to the Customs Duty Order 2017 (ATIGA) subject to the established criteria for such treatment.

Approval for the sale of finished goods to the local market by paying import duty at the ATIGA duty rate is limited to the percentage of the local sales quota that has been set in the GPB license conditions.

If sales exceed that quota, this facility is not eligible to be enjoyed over the excess quota. Import duty must be paid according to the current rate based on the Customs Duty Order 2017.

At which Ports, Airports and Road Borders does TNETS Global Malaysia operate Customs Clearance services in Malaysia

Ocean Ports Supported by TNETS Global Malaysia for Customs Clearance

Kuah Port, Langkawi
Teluk Ewa Port, Langkawi
Pulau Pinang Port, Penang
Butterworth Port, Penang
Lumut Port, Perak
Klang Port, Selangor
Melaka Port, Melaka
Pasir Gudang Port, Johor
Tanjung Belungkor Port, Johor
Tanjung Pelepas Port (PTP), Johor
Kuantan Port, Pahang
Tanjung. Gelang Port, Pahang
Kemaman Port, Terengganu
Pengkalan Kubor Port, Kelantan
Kota Kinabalu Port, Sabah
Labuan Port, Sabah
Sandakan Port, Sabah
Kuching Port, Sarawak
Miri Port, Sarawak
Sibu Port, Sarawak

Airports Supported by TNETS Global Malaysia for Customs Clearance

Langkawi, Kedah
Bayan Lepas, Pulau Pinang
Kuala Lumpur, Sepang
Senai, Johor
Kota Kinabalu, Sabah
Labuan,Sabah
Kuching, Sarawak

Road Borders Supported by TNETS Global Malaysia for Customs Clearance

Padang Besar, Perlis
Wang Kelian, Perlis
Bukit Kayu Hitam, Kedah
Pengkalan Hulu, Perak
Johor Bahru, Johor
Gelang Patah, Johor
Rantau Panjang, Kelantan
Sindumin, Sabah
Tebedu, Sarawak
Sungai Tujuh, Sarawak

Why Choose TNETS Global for Customs in Malaysia

Your Partner For Customs Clearance In Malaysia

At TNETS Global, we are proud to be a leading customs intermediary and provider of customs and trade management technology in Malaysia. Our strategic location in the heart of Asia Pacific, with excellent air and sea connectivity, makes us the perfect partner for businesses looking to navigate the complexities of customs and trade in the region.

Customs Clearance Expertise

Our team of experienced professionals understands the intricacies of customs regulations and procedures in Malaysia and across the Asia Pacific. We offer comprehensive customs clearance services to ensure smooth and efficient import and export processes for your goods. With our in-depth knowledge of customs laws, we help you navigate through the complexities and ensure compliance, saving you time and resources.

Trade Management Technology

To simplify your customs and trade processes, we provide cutting-edge trade management technology solutions. Our state-of-the-art software and digital platforms enable seamless document management, real-time visibility of your shipments, automated compliance checks, and efficient communication with relevant authorities. Our technology empowers you to streamline your supply chain, reduce costs, and enhance operational efficiency.

Regional Reach

Malaysia’s strategic location at the crossroads of major trade routes and its world-class transportation infrastructure make it an ideal hub for businesses operating in the Asia Pacific region. With our extensive network and partnerships, we extend our services beyond Malaysia to cover the entire Asia Pacific region. Whether you need assistance with customs clearance, trade compliance, or trade technology solutions, our experts are equipped to support your business needs across borders.

Air and Sea Connectivity

Malaysia is renowned for its excellent air and sea connectivity, making it an ideal gateway to the Asia Pacific. KLIA, consistently ranked as one of the best airports globally, offers direct flights to major cities worldwide. Our proximity to the ports of Klang, PTP ansd Pasir Gudang, some of the busiest and most efficient ports in the world, ensures seamless sea transport for your goods. We leverage this connectivity to provide you with efficient and reliable Malaysia customs and trade services.

Value-Added Services

In addition to our core Malaysia customs clearance and trade management technology offerings, we provide a range of value-added services to cater to your unique requirements. These include consulting services for trade compliance, duty and tax optimization strategies, supply chain risk management, and trade finance solutions. Our aim is to be your trusted partner, supporting your business growth and helping you stay ahead in a competitive marketplace.

Experience the TNETS Global Advantage

With our deep customs expertise, advanced trade management technology, extensive regional reach, and seamless air and sea connectivity, TNETS Global Malaysia is your go-to partner for customs and trade solutions in the Asia Pacific. We are committed to delivering exceptional service, enhancing your operational efficiency, and ensuring compliance in a rapidly changing global trade environment.

Contact us today to explore how TNETS Global Malaysia can support your customs and trade management needs. Together, let’s unlock new opportunities and drive your business forward in the dynamic Asia Pacific region.

Experienced Declaration Team

Our team of customs experts brings years of experience to the table.

They are well-versed in navigating the intricacies of customs regulations and will ensure your shipments clear customs smoothly.

Customs 360

We provide you with access to Customs 360, our ground-breaking customs and trade management business intelligence tool.

Customs 360 streamlines the declaration process, reducing errors and saving valuable time.

Its user-friendly interface makes it easy for you and your clients to monitor and manage customs declarations.

Round-the-Clock Availability

International trade never sleeps, and neither do we.

Our services are available 24/7/365, ensuring that you and your clients have the support you need, whenever you need it.

No matter the time zone or location, we’re here to assist you.

How does TNETS Global's Customs Broker service in Malaysia work in practice?

Seamless Integration

Our Customs Broker Service seamlessly integrates with your existing freight forwarding operations.

You or your clients will experience a unified service that simplifies customs clearance.

Branded Service

We understand the importance of maintaining your brand identity.

With our white label solution, freight forwarders can offer our customs brokerage services under their own brand, enhancing client relationships.

Customised Solutions

We work closely with you to tailor our services to your specific needs or the requirements of your clients.

Whether it’s handling customs clearance for imports or exports, we have you covered.

Benefits of using TNETS Global's single Customs Broker solution

Competitive Edge

Stand out in the market by offering a complete customs brokerage solution.

Efficiency

Streamline operations and reduce the burden of customs compliance.

Cost Savings

Eliminate the need for in-house customs experts and expensive software.

Customer Satisfaction

Enhance client relationships by providing a seamless customs experience.

Conclusion: TNETS Global Customs Broker Solution

TNETS Global’s Customs Broker Service is the key to unlocking new opportunities.

With our experienced declaration team, cutting-edge Customs 360 platform, and 24/7 availability, you can enjoy top-tier customs brokerage services.

Partner with us today and take your customs activities to new heights.

Contact us to learn more about our Customs Broker Service and how it can benefit your business.

Whatever the size of your business or the industry you serve, TNETS Global in Malaysia has a customs clearance solution for you.

Get Started with TNETS Global's customs clearance service in Malaysia today

We understand your business.

Our expertise across all industry verticals makes customs clearance compliant, speedy, and cost-effective for our clients.

Regardless of whether you are importing, exporting or transhipping, TNETS Global has got you fully covered when it comes to any aspect of Customs Clearance.