Soalan Lazim
(Tiada terjemahan di dalam Bahasa Malaysia)
1. Where can we get the Cost Analysis Application Form?
Please download it
here.
2. How can a company claim for preferential tariff treatment?
The company can claim preferential tariff treatment by:
a. Present COO to Customs Authority of the importing country.
b. If there is any reasonable doubt, Customs Authority of the importing party may request issuing authority of the exporting part to retroactive check.
c. If not satisfied, the Customs Authority may conduct verification visits to the manufacturer’s premise in exporting country.
3. How does a product be determined of its origin?
A product is deemed as originating from a particular country based on two criteria:
a. It contains no materials or processing from outside country, i.e., the products is wholly obtained; or
b. Sufficient working or processing or substantial transformation has taken place.
4. How to check the product HS Code?
Product classification is normally in accordance with the Harmonized Commodity Description and Ceiling System (HS). The related agency in determining HS Code is the Royal Malaysian Customs Department (RMCD). Under Malaysia’s FTAs, goods are classified under specified digit level.
a. The first two digits are known as the chapter;
b. The first four digits as the heading;
c. The first sixth digits are subheading; and
d. The seventh and eighth digits consist of further detailed tariff nomenclature breakdown.
The chapters are organized according to materials or to degree of processing, for instance:
a. Live animal Chapter 01
b. Rubber and articles thereof Chapter 40
c. Wood and articles thereof Chapter 44
Within each chapter, there are several headings. Within Chapter 01, there are several headings, namely:
a. Live horses, asses, mules and hinnies
Within each heading, goods are categorized into subheadings, as follows:
a. 0101.10.00 for pure breeding animals
Within each subheading, there are several subheadings, such as:
5. What is Preferential Tariff?
Preferential tariffs are customs duties imposed on incoming goods from an FTA partner which is set to zero at a lower tariff than that imposed on other countries. The elimination/reduction exercise does not cover internal taxes such as GST or excise duties.
6. What is Rules of Origin (ROO)?
Rules of Origin are the criteria used to determine the country in which the goods has been produced or manufactured. It is the basis used for international trade purposes. ROO is needed to determine the origin of products eligible for the preferential tariff concession.
7. What are the benefits of FTA to Malaysia based exporters?
Exporters in Malaysia will benefit from FTAs through preferential treatment and market access. Exporters will also enjoy cost savings from elimination or reduction of customs duties and from mutual recognition agreements, trade facilitating customs procedures and removal of onerous regulations. For service providers, FTAs provide improved market access for various commercial and professional services from Malaysia. FTAs also provide for easier entry for businessmen as well as more predictable terms for investment in the FTA partner country.
8. Will my product enjoy preferential tariff under the FTA when imported into the FTA partner country?
Prior to applying for FTA concessions, companies are advised to check their product HS Code with the Customs Department. Companies should also check whether their product is included in the Inclusion List of Malaysia and the importing ASEAN country with Federation of Malaysian Manufacturers (FMM) or Ministry of International Trade and Industry (MITI). To qualify for preferential treatment, your product must also qualify as an originating good.