Customs Duties Order 2022 Released

On 15 April 2022, the Ministry of Finance (“MOF”) issued the new Customs Duties Order 2022, which will supersede the existing Customs Duties Order 2017, effective 1 June 2022.

This new Customs Duties Order 2022 is in line with the release of the seventh edition of the Harmonized System (“HS 2022”) by the World Customs Organization (“WCO”). It has been updated with a total of 351 sets of amendments covering different new emerging products such as drones, smartphones, and vapes, in pace with the everchanging trade patterns and technology.

It is expected that importers of such products will be impacted with the implementation of the new Customs Duties Order especially those dealing with agricultural, chemical, wood, textile, metal and machinery goods. Importers should take the necessary steps to ensure accurate declaration of tariff codes upon the implementation date. We would recommend companies to:-

  • Work closely with customs agents and forwarders to start updating any master tariff code list to address the latest changes to the Customs Duties Order by referring to the HS 2017 - 2022 Correlation Tables released by the authorities;
  • Assess whether there is any impact on the existing product portfolios (e.g. if there are any potential changes to tariff rates);
  • Review whether any existing Binding Classification Rulings are affected post 1 June 2022;
  • Assess whether any preferential origin certification of products under free trade agreements need to be updated in due course; and
  • Closely monitor amendments to the other Duties or Sales Tax Rates Orders in Malaysia in the near future.

Please click on the above header links for a copy of the Customs Duties Order 2022 at the official portal of the Federal Legislation and to the World Customs Organization webpage for more information on HS 2022.

Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.

For customized guidance, please do not hesitate to reach out to your trusted KPMG adviser(s),

Petaling Jaya Office

Soh Lian Seng
Executive Director -
Head of Tax and Head of Tax Dispute Resolution
+ 603 7721 7019

Bob Kee
Executive Director -
Head of Transfer Pricing
+ 603 7721 7029

Tai Lai Kok
Executive Director -
Head of Corporate Tax
+ 603 7721 7020

Long Yen Ping
Executive Director -
Head of Global Mobility Services
+ 603 7721 7018

Ng Sue Lynn
Executive Director -
Head of Indirect Tax
+ 603 7721 7271

Outstation Offices

Penang Office

Evelyn Lee
Executive Director -
Penang Tax
+604 238 2288 (ext. 312)

Ipoh Office

Crystal Chuah Yoke Chin
Tax Manager -
Ipoh Tax
+605 253 1188 (ext. 320)

Kuching & Miri Office

Regina Lau
Executive Director -
Kuching & Miri Tax
+6082 268 308 (ext. 2188)

Kota Kinabalu Office

Titus Tseu
Executive Director -
Kota Kinabalu Tax
+6088 363 020 (ext. 2822)

Johor Bahru Office

Ng Fie Lih
Executive Director -
Johor Bahru Tax
+607 266 2213 (ext. 2514)