Import Duties on Motor Vehicles Sold in Malaysia

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At present, various duties are levied on all vehicles imported in Completely Built-Up (CBU) form for sale in Malaysia, after which Sales Tax is added on. Basically, there are three categories defined by the Royal Malaysian Customs & Excise Dept and following a rationalisation exercise early in 2000, these are:

A. PASSENGER CARS (INCLUDING STATIONWAGONS)
B. 4X4 VEHICLES (EXCLUDING MODELS LIKE THE SUBARU IMPREZA WHICH ARE CONSIDERED PASSENGER CARS)
C. OTHERS (VANS, MPVS, ETC)

PASSENGER CARS (PETROL ENGINES)
Import Duty:-

   Up to 1799 cc   140% of CIF (Cost, Insurance & Freight)
   1800 cc - 1999 cc   170% of CIF
   2000 cc - 2499 cc   200% of CIF
   2500 cc - 2999 cc   250% of CIF
   3000 cc and above   300% of CIF

- Import Duty for passenger cars with diesel engines is set at a flat rate of 120% of CIF.
- Sales Tax is calculated based on 10% of (CIF + Import Duty charged)


4X4 VEHICLES & OTHERS
Import Duty:-

   Up to 1799 cc    60% of CIF
   1800 - 1999 cc    80% of CIF
   2000 - 2499 cc   150% of CIF
   2500 cc - 2999 cc   180% of CIF
   3000 cc and above   200% of CIF

- Sales Tax is calculated based on 10% of (CIF + Import Duty charged)


It should be noted that the declared valued of a vehicle need not necessarily be accepted by the Customs Dept which has its own method of determining the Open Market Value (OMV) for a specific model. If a vehicle's value, as declared by the importer, is considered too low, the OMV can be applied for purposes of determining import duty payable.


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