just to share with you on how the duty/tax is calculated. Assuming you have in mind that RM500 and below can avoid duty/tax.
It is based on your CIF value.
Meaning:
C = cost of product, as declared in invoice
I = Insurance, which usually is 2% of your product value
F = Freight cost, which is a cost which is fixed and used by customs. You can get the table from them.
So for example, you are buying a USD100 value item and kena tax. You might be wondering, isn't it no duty/tax if items are below RM500?
Well, depending on the weight of your shipment, it translate into the value of the freight cost.
So lets say your freight cost comes up to RM300, from customs table.
Plus RM320 from your product value. (USD100 conversion).
Total is RM620. and remember that little 2% value.
So definitely more than RM500, which means your items are taxable.
How much tax/duty? well, refer back to the customs tariff webpage.
Also guys, remember apart from duty/tax, there are other requirements such as permits/import license, SIRIM permit, AP permit, health ministry permit, filem permit, etc etc..also remember, if M'sia is able to produce the item locally, and you import those things in, you will get a high duty/tax.
For instance, you are importing rubber products. get it?
Hope this helps.
Jan 15 2013, 12:17 PM
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