Last updated: 24 May 2012

Tariffs and regulations

Tariffs and duty rates are constantly revised and are subject to change without notice.

Austrade strongly recommends you reconfirm these prior to selling to Malaysia.

Australian exporters can access Austrade’s AANZFTA tariff finder. The tool provides an easy reference for Australian exporters who want to know what the applicable tariff rate is for their products under the AANZFTA.

For further information please visit Malaysian Customs.

Tariffs and non-tariff barriers

Tariff

Malaysia adopts the Harmonized Commodity Description and Coding System of classification of goods. Malaysia is progressively liberalising its tariff regime, however, some products that are in competition with locally-manufactured products are still highly protected. Please contact our Austrade Kuala Lumpur office for tariff details.

The bilateral trade relationship between Australia and Malaysia has reached a significant cornerstone with the signing of a comprehensive free trade agreement (FTA). Building on the ASEAN Australia New Zealand Free Trade Agreement (AANZFTA), this bilateral FTA will guarantee tariff-free entry for 97.6 per cent of current Australian goods exports to Malaysia upon entry into force (99 per cent by 2017), whilst Malaysian exports will benefit from duty-free entry into Australia upon entry into force. Significant gains have also been achieved for services and investment through access to increased foreign ownership in key services sectors where Australia has proven capability. See the media release and Department of Foreign Affairs and Trade (DFAT) for more information on the agreement.

Product certification, labelling and packaging

Packaging and labelling requirements vary depending on the products. New food labelling laws to comply with international standards are to be implemented on 1^st March 2004.

All regulations pertaining to food products can be found in the Food Act 1983 (incorporating all amendments up to 1 January 2006). Specific labelling regulations can be found in the Labelling and Food Declaration Guide issued by the Ministry of Health.

Halal and health certificates are required for all meat-based products and are Issued by JAKIM. Halal Development Corporation sets the policies pertaining to the halal qualifications and JAKIM enforces these policies.

Methods of quoting and payment

Quotes preferably in Ringgit Malaysia (RM), CIF. Payment usually byletter of credit. Established agencies may request D/A terms of 60-90days.

Documentary requirements

Pro-forma invoice

Not compulsory but may be requested in certain cases.

Commercial invoice

Two copies are required. The invoice, signed by the exporter or shipper, must indicate the following details:

• number and descriptions of packages
• marks and numbers of individual packages
• detailed description of the goods
• gross and net weights or quantity
• FOB and CIF values
• country of origin
• place of shipment and destination of the goods

The certificate of origin must be completed for goods on which preference is claimed. The certificate's details must include:

• a description of the goods
• their total invoice value
• a signature by the proprietor, a partner or principal official of the manufacturing or supplying firm (name of person signing and position in firm must be stated)

The following certification must be provided:

• that the person signing has the means of knowing the statement in the certificate to be correct
• that the person signing is duly authorised to issue the certificate on behalf of the manufacturer, producer or grower and, if appropriate, the supplier
• that the goods are the produce or manufacture of the Commonwealth country named
• if grown or produced, that the goods were grown or produced in and consigned from the named Commonwealth country or countries

Insurance

Normal commercial practice.

Bill of lading

Minimum of two copies required. To Order bills are acceptable.

Packing list

Must be furnished if contents of shipment not itemised in invoice. Packing list also facilitates clearance through customs.

Weights and measures

The metric system.

Public health requirements

Prior permits from the Malaysian Department of Agriculture are required for a range of items:

• plants and parts for propagation, including seeds
• soil for research purposes and growing media

Special requirements govern the importation of drugs, pharmaceuticals and chemical additives used in food.

All imported foodstuffs and drugs are subject to inspection.

Electric motors must be approved by the Chief Electrical Inspector.

Machinery must meet with safety requirements and be approved by the Chief Inspector of Machinery.

Top Business Risks

• Bribery of Foreign Officials
• Tariffs and regulations
• Doing business in Malaysia

OECD Guidelines for Multinational Enterprises

Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.

Extractive Industries Transparency Initiative

The Extractive Industries Transparency Initiative (EITI) is a voluntary mechanism which promotes and supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.

The EITI is supported by governments, industry, and non-government organisations around the world. The Australian Government supports the EITI and encourages Australian companies operating internationally to comply with its recommendations.

APEC Business Travel Card Scheme

Managed by the Department of Immigration, the APEC Business Travel Card Scheme was developed to make travelling within the 21 APEC member countries much simpler and more efficient.