If you are in the trading business in Malaysia where you import or
export products, then your products are subjected to Import Duty which
are imposed Ad Valorem. Ad Valorem is a latin word used to describe
taxation which is imposed based on the value and the quantity of the
There is a certain percentage of taxation imposed on certain products in
a specific category and the tax involved will be multiplied according to
the quantity you are importing.
Malaysia submits to the ASEAN Common Effective Preferential Tariffs (CEPT)
scheme where all traded industrial goods within the ASEAN region would
be imposed between 0 to 5% of import duty. In recent years, Malaysia has
been involved with other members around the region in the discussion of
the free trade agreements which, once confirmed will surely directly
affect the import duty into Malaysia.
Currently, bilateral free trade has been signed between Malaysia and
Japan under the Japan-Malaysia Economic Partnership Agreement while
similar initiatives have also been made between Korea and China as well.
Basically, most tradable items would be subjected to import duty and
recently the government announced that they were planning to cancel the
import duty of some 300 products from known brands.