Malaysia Import Duties & Taxes Explained

Customs duty in Malaysia is calculated as a percentage of your shipment's CIF value (Cost + Insurance + Freight) when it exceeds RM 500, with typical rates ranging from 0% to 30% for most consumer items. Your shipment will also incur a 10% Sales Tax on the combined value of goods plus any duties, while shipments under RM 500 are exempt from import duty but still face the 10% Low Value Goods tax.

Yes, carriers like DHL, FedEx, or UPS typically charge a disbursement fee of approximately RM 50 or 3% of the tax amount, whichever is higher. You may also face a Duty Confirmation Fee of around RM 53 if your charges exceed RM 1,000.

Import Duty is waived for goods under RM500, but a 10% Low Value Goods (LVG) tax still applies to your shipment. All imported taxable goods valued at RM500 or less are subject to this 10% sales tax regardless of the duty exemption.

For shipments exceeding RM 500, the standard SST rate is typically 10% for most consumer goods like electronics and apparel, though some items may be taxed at 5%. This tax is calculated on the CIF value plus any applicable Import Duties.

The Royal Malaysian Customs Department (RMCD) determines the final charges, but they are usually collected by your shipping carrier upon delivery. The carrier acts as a broker to advance these payments on your behalf.

Keeping each consignment under RM 500 removes the Import Duty threshold, but the 10% LVG tax still applies to every package regardless of value. Splitting orders does not remove all tax obligations, as the LVG tax covers almost all low-value imports.

Basic necessities such as rice, medicine, and certain educational books remain exempt from Sales Tax. However, premium imported food items like salmon and avocados are now subject to 5% or 10% tax as of July 2025.

If the merchant is registered for Malaysia's LVG tax and collected it at checkout, you should not be charged again upon arrival. Check your invoice carefully to ensure you are not charged twice, as the carrier will only collect taxes that haven't been pre-paid.

The LVG tax is a flat rate of 10% applied to the CIF value of goods RM 500 or less, excluding insurance and freight. This tax is collected by the carrier upon arrival if not already paid at checkout.

Malaysia applies a 10% Low Value Goods (LVG) tax to shipments valued at RM 500 or less, while shipments exceeding RM 500 may incur both Import Duty (typically 0-30%) and Sales and Service Tax (SST) at 5% or 10%. Your shipment will be assessed by Royal Malaysian Customs Department upon arrival, with carrier disbursement fees of approximately RM 50 often added.