Most-Favored Nations (MFN)
MFN tariff is a normal non-discriminatory tariff charged on imports (excludes preferential tariffs under free trade agreements and other schemes or tariffs charged inside quotas).
For Malaysia, MFN tariffs are applied to all WTO Member Countries based on the listing contained in the Customs Duties Order(s).
Under the WTO Agreements, WTO Members should not discriminate between their trading partners. According to the MFN principle, any advantage (such as a lower tariff on one of its products), favour, privilege or immunity granted by a Member to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like products of all Members. Hence, the principle requires each Member to extend to all other WTO Members treatment no less favourable than the treatment it accords to imports from any other country.
The MFN principle embodied in the WTO Agreements in Article I of the GATT 1994, Article II of the General Agreement on Trade in Services (GATS) and Article 4 of the TRIPS Agreement.