How to Find and Use Malaysia Customs HS Code for Your Products

If you are an exporter or importer who wants to trade with Malaysia, you need to know the Malaysia Customs HS Code for your products. The HS Code is a standardized system of classification that assigns a unique six-digit code to each product category. It helps the customs authorities to identify the origin, destination, and tariff rates of the products.

The HS Code is based on the Harmonized Commodity Description and Coding System (HS), which is an international standard maintained by the World Customs Organization (WCO). The HS is updated every five years to reflect changes in trade patterns and technology. The latest version, HS 2022, will be implemented by Malaysia on January 1, 2022.

HS Code Hierarchy

The HS Code consists of four levels of hierarchy: Section, Chapter, Heading, and Subheading. For example, the HS Code for coffee beans is 0901.11.00, which means:

• Section: 04 – Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes
• Chapter: 09 – Coffee, tea, maté and spices
• Heading: 01 – Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion
• Subheading: 11 – Coffee, not roasted
• Further subheading: 00 – Not decaffeinated

The HS Code is also used to determine the ASEAN Harmonized Tariff Nomenclature (AHTN), which is a regional classification system for trade among ASEAN countries. The AHTN has eight digits, with the first six digits being the same as the HS Code, and the last two digits being specific to each ASEAN country. For example, the AHTN Code for coffee beans in Malaysia is 0901.11.10.

Find The Correct Malaysia Customs HS Code

To find the correct Malaysia Customs HS Code for your products, you can use the Search Tariff function on the JKDM HS Explorer Website . You can search by keyword, tariff type, or section/chapter/heading/subheading. You can also download the correlation tables that show the changes from HS 2017 to HS 2022 .

If you are still unsure of the codes for your products, you can contact the officers at the Royal Malaysian Customs Department Head Office or any of its branch offices for assistance . This service is provided free of charge.

Using the correct Malaysia Customs HS Code for your products is important for several reasons:

• It helps you to comply with the customs regulations and avoid penalties or delays.
• It helps you to calculate the correct tariff rates and taxes for your products.
• It helps you to benefit from preferential tariff rates under free trade agreements (FTAs) that Malaysia has signed with other countries or regions.
• It helps you to access market information and statistics on your products.

Therefore, it is advisable to check and update your HS Code regularly to ensure that you are using the most current and accurate version.

Malaysia Customs HS Code: Trends and Insights

The Harmonised System (HS) Code is a set of customised codes used in import and export trades between Malaysia and non-ASEAN countries. It helps the customs authorities to tabulate taxes and duties, as well as to monitor the trade flows of various products. In this blog post, we will look at some of the trends and insights related to the Malaysia customs HS code, based on the latest data available.

HS Code Changes in 2022

The World Customs Organization (WCO) updates the HS code every five years to reflect the changes in international trade patterns and technologies. The latest version of the HS code, known as HS 2022, will be implemented by Malaysia from 1 January 2022. The customs department has published two correlation tables to help traders to map their products from the previous HS code (HS 2017) to the new one (HS 2022), and vice versa.

According to the WCO, some of the major changes in HS 2022 include:

• The creation of new subheadings for novel tobacco and nicotine-based products, such as electronic cigarettes and heated tobacco products.
• The expansion of the coverage of environmental and social issues, such as the addition of new subheadings for dual-use goods that can be used for civilian or military purposes, such as drones and lasers.
• The enhancement of the classification of high-tech products, such as the introduction of new subheadings for smart phones, tablets, smart watches, and wearable devices.
• The clarification and simplification of some existing subheadings, such as the removal of obsolete terms and the alignment of product descriptions with industry standards.

Traders are advised to familiarise themselves with the HS 2022 changes and to update their product classifications accordingly. Failure to do so may result in incorrect declaration of goods, which may lead to penalties or delays in customs clearance.

HS Code Trends in 2021

Based on the data from the Malaysia External Trade Statistics (METS), we can observe some of the trends in Malaysia’s import and export trade by HS code in 2021. Here are some of the highlights:

• The top five HS codes for Malaysia’s exports in 2021 (January to October) were: 85 (electrical machinery and equipment), 27 (mineral fuels), 84 (machinery and mechanical appliances), 39 (plastics and articles thereof), and 29 (organic chemicals). These five HS codes accounted for 63.5% of Malaysia’s total exports value in 2021.
• The top five HS codes for Malaysia’s imports in 2021 (January to October) were: 85 (electrical machinery and equipment), 84 (machinery and mechanical appliances), 27 (mineral fuels), 87 (vehicles other than railway or tramway), and 90 (optical, photographic, medical or surgical instruments). These five HS codes accounted for 58.4% of Malaysia’s total imports value in 2021.
• The HS code that showed the highest growth rate in exports value in 2021 (January to October) compared to the same period in 2020 was: 71 (natural or cultured pearls, precious or semi-precious stones). This HS code increased by 125.6%, mainly due to the higher demand for gold from China, India, and Singapore.
• The HS code that showed the highest growth rate in imports value in 2021 (January to October) compared to the same period in 2020 was: 98 (special transactions and commodities not classified according to kind). This HS code increased by 392.9%, mainly due to the higher imports of COVID-19 vaccines from various countries.

The Malaysia customs HS code is an important tool for traders to classify their products and to comply with the customs regulations. It also provides valuable insights into the trends and patterns of Malaysia’s international trade. Traders should keep themselves updated with the latest changes and developments in the HS code system, as well as the data sources available for their reference.

References:

http://www.wcoomd.org/en/topics/nomenclature/overview/what-is-the-harmonized-system.aspx

http://www.wcoomd.org/en/about-us/wco-members/membership.aspx

https://www.science.org/doi/10.1126/science.aaa3141

https://www.semanticscholar.org/paper/cb6ffad924e5447f2fece99a1c1a891aaf745d7a

https://ui.adsabs.harvard.edu/abs/2015Sci…348..291C

http://tariff.customs.gov.my/
https://www.matrade.gov.my/en/export-to-the-world/getting-started-page/tariff-code-references
https://www.dhl.com/discover/en-my/logistics-advice/import-export-advice

http://tariff.customs.gov.my/
https://www.matrade.gov.my/en/export-to-the-world/getting-started-page/tariff-code-references

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