Customs clearance refers to the movement of cargo through a customs authority, so that the goods can be shipped from one country to another.
Depending on the context, customs clearance can also refer to a specific document that is issued to a shipper by a national customs authority. It serves as proof that the shipment has been authorised and all customs duties have been paid for. This legal instrument grants permission for goods to enter or leave the country.
Whenever you ship items across borders, you will require customs clearance for your goods.
Customs clearance can be a hassle-free and cost-efficient affair when handled by professionals. Contact us to learn more about our services!
Who provides custom clearance services
Custom clearance services are provided by customs clearance brokers and freight forwarders.
Customs Clearance Brokers
Customs clearance brokers are businesses or individuals that are licensed to act as middlemen between exporters, importers and a government’s customs agency.
They are only involved during the customs clearance process, and play no part in the transportation of goods from one country to another.
Freight Forwarders
Freight forwarders mainly serve as an intermediary between shippers and transporters. They are involved in the shipping of goods on behalf of a cargo owner.
In some cases, freight forwarders can also be licensed to provide customs clearance services.
They are ideal for clients who are looking for a one-stop solution for both their shipping and customs clearance needs.
Benefits of engaging a custom clearance service
Fast and Hassle-free
As there are many rules and regulations to follow, customs clearance can be a confusing and frustrating process for those without prior experience.
Having your paperwork handed by professionals would help to simplify the clearance process. This could also reduce the delivery duration of your cargo.
Cost-efficient
Engaging customs clearance services can be cost-efficient as professionals will be handling all the paperwork on your behalf.
This means you can avoid spending unnecessary money and time on documents that are not essential.
Reliable and Experienced
Customs clearance service providers are experts in the field of import and export clearance. They are able to streamline the entire process and advise you on common mistakes to avoid.
Their knowledge and experience will certainly give you confidence and set your mind at ease.
Custom Clearance Procedure in Malaysia
There are many steps involved during the customs clearance procedure. These are the main steps that you will need to be aware of when going through the process.
Still have questions about the customs clearance procedure? Consult our customer service team at M&P International Freights to clarify your doubts!
How much is the Custom Clearance fee in Malaysia?
Customs clearance fees are dependent on a number of factors such as the value of the imported goods, the classification of cargo, and the origin and destination of the shipment.
How is customs duty calculated in Malaysia?
Malaysia’s customs duties are often imposed on an ad valorem basis (a percentage of the goods’ customs value). Depending on the classification of the cargo involved, duty rates can range anywhere from 2% to 60%.
Certain categories of goods such as raw materials, pharmaceutical products and food necessities may be exempted from customs duties or subjected to reduced rates.
As an estimate, the customs duty of goods imported into Malaysia can be calculated as such:
(Value of Goods + Freight Costs + Insurance Charges + Any Additional Costs) × Duty Rates
Note!
Customs duty fees should not be confused with import taxes. Import taxes refers to the additional cost of importing products into the destination country.
For example, all imported goods in Malaysia are subjected to a Sales & Service Tax (SST) of 10%. Depending on the type of good, some are taxed at a reduced rate of 5% while others are exempted from sales tax.
Why choose M&P International Freights?
With our relevant licences, M&P International Freights is recognised by customs authorities as a professional customs clearance service provider.
We place great emphasis on customer service and strive to meet all your needs. You can expect your queries and concerns to be answered within 1 working day.
M&P International Freights has been providing freight forwarding and customs clearance services for over a decade. We have a team of experienced professionals whom you can trust to get the job done reliably.
FAQs about Custom Clearance in Malaysia
Once a package arrives in Malaysia, it will only be released once all duties and taxes have been paid for. If there are any issues with the documentation or shipment, the goods may only be released after 24 to 48 hours from their arrival.
While there are no specific ways to hasten the customs clearance process, you still can ensure the entire procedure moves along smoothly.
To help the customs authority better clear your customs, you should verify that you have submitted all the relevant clearance documents and made payment for all customs duties and import taxes imposed on your goods.
Export clearance refers to the clearing of customs at the country of origin, to enable goods to be shipped out of the country.
Meanwhile, import clearance refers to customs clearance at the destination country, to allow cargo to be shipped into the said country.
There could be several reasons why your goods are stuck in customs:
- Pending duty and tax payment confirmation from the customs authority
- Cargo needs to be physically examined by the customs authority or relevant agencies
- Customs authority does not agree with the valuation or classification of your goods
- Commercial invoice could be missing key information
- Your goods have been confiscated by the relevant authorities
Your goods may get confiscated by customs authorities if it was shipped without the required licences or permits. Your shipment may also contain items that are illegal for export or import.
When your goods are confiscated, they will usually be detained by customs authorities for a few days. An inspection and physical examination will also be carried out for cargo that is suspected to contain prohibited goods.
If you are unable to provide a valid reason for the shipping of those goods, your cargo will not be cleared and may be confiscated indefinitely.