What Is Customs Clearance And Handling In Malaysia? A Good Question!

Customs clearance in Malaysia is the same with many countries in the world. Like most countries, it is not a simple and straightforward process, but in Malaysia, it is perhaps more complicated than others due to its own set of rules and implementation.The paperwork can be daunting or even confusing and perplexing for most people who are not familiar with the customs clearance and handling Malaysia.

So, if you are planning to import a restricted or controlled product, you will have to deal with customs as well as the relevant authority. Restricted product means that it is restricted from being imported freely into Malaysia. Approved Permits (APs) are licenses that are required for importing these goods into Malaysia. APs are issued by the Ministry of International Trade and Industry (MITI) and are used to regulate the import of goods that are considered strategic, sensitive, or controlled. Controlled product will require approval or permit from the relevant authority, for example Ministry of Health for pharmaceutical or healthcare product, Malaysian Communications and Multimedia Commission (MCMC) for telecommunications or IT product or Malaysian Quarantine and Inspection Services (MAQIS) for food or food-related product.

You also must deal with product classification, which customs require all imports to be classified into categories under Harmonized System (HS) code. It is an internationally standardized system of names and numbers for classifying goods in international trade. If you have a product that doesn't fit into one of the categories, you will need to apply to customs to classify it. It is also important to know that different HS code under the same product category may have different tax and duty structure. Knowing how to classify your product under the correct HS code can potentially reduce duty and tax for your import.

There are 3 types of customs clearances in Malaysia, namely:

1.    Formal clearance (full set documentation required) through freight forwarders.
2.    Informal clearance (manifest) through couriers.
3.    Postal clearance through national postal agencies.

The most complicated process is the formal clearance followed by informal and postal clearance. We will not dwell into the technicalities and intricacies of each type of customs clearance in this topic at the moment.

While most large companies can navigate and handle customs clearance by their internal logistics department or their appointed forwarding agent and customs broker, many small and medium enterprises (SMEs) especially small offices/home offices (SOHOs), online e-commerce stores and consumers at large will find customs clearance in Malaysia very challenging so much so that most of them decide to buy from local agents instead of importing themselves. Some may even forgo the imported goods held by the customs or pay hefty amounts of charges and fees including fines and penalties to clear their goods from the customs.

Therefore, it is very important that before importing any goods into Malaysia, we highly recommend that you work with your appointed freight forwarder/customs broker who can assist you with the importation and customs clearance process.

If you use the special customs brokerage and clearance in Malaysia provided by VSHUB or Borderclick, rest assured that your import will be processed smoothly and efficiently.

VSHUB operates from Singapore with warehouses in Singapore, USA and China providing parcel forwarding and freight consolidation services. Together with Borderclick, in partnership with a global network of freight forwarders and international couriers, we can handle import to Malaysia for you from anywhere in the world.

There are many advantages using VSHUB or Borderclick for your customs brokerage and clearance, including but not limited to the following:

1.    One-stop service provider
2.    Door to door service
3.    Shipment consolidation
4.    All-in pricing (no billing shock)
5.    Documentation support
6.    E-commerce friendly

VSHUB provides special customs brokerage and clearance by acting as the Importer of Record (IOR) for companies and individuals importing goods into Malaysia. The primary role of an Importer of Record (IOR) is to ensure that imported goods are properly classified, that the correct duties and taxes are paid, and that the goods meet all applicable regulatory requirements.

Some of the specific roles and responsibilities of an IOR may include:

1.    Obtaining the necessary import licenses or permits for the imported goods.
2.    Preparing detailed information and declaring to the customs authorities.
3.    Classifying the goods under the relevant tariff codes.
4.    Paying duties and taxes (if any)
5.    Coordinating with the seller or manufacturer of the goods
6.    Coordinating with 3rd party logistics providers and freight forwarders

VSHUB as well as Borderclick have been importing goods for thousands of customers over the past ten years for many products categories ranging from consumer products, industrial goods, food and beverages and machineries. Our customers include end consumers, small and medium enterprises and large companies.

VSHUB is a specialist in handling door-to-door shipping to Malaysia which include customs handling and clearance as a special customs agent or broker or as an importer of record. Together with Borderclick, we have handled over 30,000 deliveries including customs handling and clearance for more than 5,000 satisfied customers.