Understanding the HS Code in Malaysia and How It Is Determined
The Harmonized System (HS) is a set of rules developed by the World Customs Organization to classify goods according to their origin, value, and state. These rules are used in many countries to classify goods and determine their duties and taxes. The HS is a classification system that differentiates and standardizes the classification of goods across the world. These standards also help customs authorities determine the value and origin of goods and trace them if they are being smuggled. The majority of the HS codes in Malaysia are used to classify goods according to their origin.
When is the HS Code Used in Malaysia?
The HS Code is used in the following circumstances:
* When a shipment of goods arrives at a Malaysian airport and is bound for Malaysia. The shipper of the goods will indicate to customs which HS code should be used for the goods.
* A company importing a product into Malaysia will also use an HS code when it’s submitting its import entry.
* When printing an export declaration on Malaysian Customs Form 3-1 (E2), the exporter must use the relevant HS code.
* When shipping goods between countries, there are also rules to determine what HS Code should be used.
Import and Export of Goods and Requirements for Registration
There are some goods that need to be imported and exported in the Malaysia. To import or export any of these items in Malaysia, there are certain requirements that vary depending on the type and quantity of goods being shipped. Goods such as tobacco and alcohol, for instance, must have a permit before they can be brought into the country. The permit is known as an import license. Even though you might not need an import license to bring these items into the country, you will still need to declare them to customs authorities when you bring them over the border. If you fail to declare your goods, it could lead to penalties or fines.
In order to import or export goods in Malaysia, there are three types of registration certificates that you may need:
– Import/Export License: These certificates allow traders or other commercial operators to carry out their business of importing and exporting within Malaysia’s territory;
– Provisional Importer Certificate: This certificate is required for importing any goods into Malaysia that have been produced outside of Malaysia’s territory;
– Certificate of Origin: This certificate is used by traders who wish to export goods from one state within Malaysia’s territory (Malaysia) to another state with the Customs Mutual Assistance Agreement (CMAA). It records information about the origin and classification of goods exported from one CMAA member state for purposes of trade with another CMAA member state.
Understanding the Meaning of the HS Code Numbers
The HS code is composed of six digits that comprise two components: the first 3 digits represent the product’s subheading and the last 3 digits represent its chapter.
The first 3 digit component of a HS code is called a subheading. This defines a group of goods that are similar in some way, such as cotton yarn or electrical wiring.
The last 3 digit component of a HS code is called a chapter. This defines the country or region where the goods were manufactured, such as China, India, or Japan.
A particular good can be classified by more than one HS code number. For example, if your goods are made in Japan and exported to Malaysia, it will have both an 8402 HS code and 8523 HS code because it has different chapters but they share a subheading.
In order to determine which codes apply to your goods, you need to know what this good is made from and where you are exporting it from. Once you know these facts, you can refer to the tariff schedule for an up-to-date listing of all applicable codes for your good.
There are many national and international trade organizations like the World Trade Organization (WTO) and the World Customs Organization (WCO) that have established a system of classification to standardize the meaning and labeling of goods. To ensure that transactions are conducted with full information, it is important that traders, importers, exporters and customs officers know how to classify goods.
