Malaysia’s strategic location at the heart of Southeast Asia’s market represents a great opportunity for Canadian companies looking to expand to the Asia pacific region. Malaysia’s economy is export oriented and one of the most open economies in the region. The CPTPP free trade agreement establishes duty-free access for trade between Canada and Malaysia. Shippers are searching for low cost delivery between Malaysia and Canada.
Best Shipping Options from Canada to Malaysia
There are several shipping options available for sending goods between Canada and Malaysia. The best option for you will depend on your specific needs and preferences, such as the type and size of the goods you are shipping, the speed of delivery you require, and your budget. Here are some common shipping options that you might consider:
- Air freight: This is the fastest shipping option with door to door integrated solutions.
- Ocean freight: This is a slower but more economical option for shipping full container load (FCL) and less than container load (LCL).
- Commercial carriers such as FedEx, DHL, UPS and their partners.
- Postal services: Canada Post is generally the best option for individuals shipping small shipments and personal items to Malaysia
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A Guide for Shipping between Canada and Malaysia
- Malaysia customs processes, duty, and required paperwork from Canada
- Shipping terms: Delivery duty paid or unpaid
- CPTPP duty free shipping to Malaysia for Canada origin goods
- Simplified Origin Declaration for Preferential Duty Free Import TO Canada
- Carrier options for shipping Malaysia from Canada
Disclaimer: The information in all Jet Worldwide online content, including this post, is for general information only
Importing Goods to Malaysia shipped from Canada
Goods shipped to Malaysia must be accompanied by an invoice for customs or other supporting documents.
Malaysian customs bases duty and taxes on the CIF value (Cost of goods being imported plus Insurance and Freight). The duty rate is assigned based on the classification of the item (referred to as the HS Code).
- Most goods imported to Malaysia from Canada that are valued under 500 Malaysian Ringgit /MYR (around $150 CAD) can be imported duty free.
- Most Canadian goods imported to Malaysia are subject to a Sales and services Tax (SST). Exact SST charges are based on the type of goods and services rendered.
Shipping Restrictions and Prohibitions to Malaysia from Canada
Restricted Items in Malaysia include
- Live fish and animal oils
- Imitation firearms and fireworks
- Telecom equipment
- Motor vehicles
- Pesticides
Prohibited Items in Malaysia :
- Sodium arsenate
- Firearms and explosives
- Items resembling syringes
- Cocoa pods
- Drugs
VAT and Import Duties in Malaysia
Duty for shipments to Malaysia can vary from duty free (documents, pet accessories, computers, audio video equipment) to 20% for such things as home appliances and toys.
Malaysia’s tariffs are typically imposed on a value-added basis, with a simple average applied tariff of 6.1% for industrial goods but can be much higher for certain goods.
Shipping Terms to Consider When Shipping to Malaysia
The default option for shipping internationally from Canada is Delivery Duty Unpaid. Common carriers use the term Ex Works (EXW) which essentially assigns all import related costs (duty, taxes, and other fees) to the receiver/importer. Shippers from Canada can choose to pay the import fees on behalf of the receiver via a Delivery Duty Paid (DDP) options that many carriers offer. See our blog on Incoterms and shipping terms for packages and online orders.
The disadvantage of paying import fees on behalf of the receiver is that the bulk of the import fees are often from a value added tax that the importing business may otherwise be able to claim back.
Notes on paperwork requirement for shipping to Malaysia
- Commercial customs invoices must contain an invoice number
- The Royal Malaysian Customs Department does not allow Pro Forma customs invoices
Importing process and fees for Canadian parcels to Malaysia:
In addition to duties and taxes, imports to Malaysia are subject to a Disbursements Fee by carriers for the processing of Customs Duties and Taxes. The costs vary by carrier but average around MYR 55 or 3% of the customs duties and taxes, whichever is higher. The disbursement fee is subject to a Service Tax of 6%.
Duty Free Clearance of Canadian Goods to Malaysia under CPTPP
CPTPP shipping between Malaysia and Canada for duty free clearance
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement that Canada shares with Malaysia. The agreement reduces barriers to trade and provides preferential duty free import between each other.
Read more about the benefits of CPTPP shipping to and from Canada
In order to claim the preferential tariff treatment to Malaysia from Canada under CPTPP, a set a data elements referred to as a ‘certification origin’ must be provided by the exporter, producer or importer of the goods by adding the information to any document (e.g., Commercial Invoice) accompanying the shipment or if preferred, by providing it on a separate document.
CPTPP self-certification of origin allows importers and exporters to self-declare they have met the rules of origin criteria. This eliminates the potentially cumbersome and costly process of applying for certificates of origin under other free trade agreements.
Read more: Certificate of origin and when it is needed
The data elements do not have to follow a prescribed format but must contain the minimum data elements listed below. In addition, the imported goods must originate and be exported from a CPTPP ratified country.
- Indicate the Certifier (Importer, Exporter or Producer)
- Name, Address and Contact Information of the Certifier
- Name, Address and Contact Information of the Exporter (if different from the certifier)
- Name, Address and Contact Information of the Producer (if different from the certifier, or exporter)
- Name, Address and Contact Information of the Importer
- Description and HS Tariff Classification for the Goods
- Origin Criterion for the Goods
- Blanket Period
- Authorized Signature and Date
The certification of origin must be signed and dated by the Certifier and accompanied by the following statement:
“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification”
For full details regarding the minimum data requirements for the certification of origin, refer to Annex 3-B of the CPTPP agreement.
Information for Commercial goods sent to Malaysia seeking CPTPP duty free entry
Products valued less than US$1000 (equivalent in local currency) that are sent to Malaysia only require a signed statement completed by the importer, exporter or producer certifying that the goods originated from Canada. This can be included as part of or in addition to the commercial invoice. All other supporting document should also be included. Higher value shipments require a certification of origin to claim CPTPP preferential tariff treatment.
DUTY FREE ≠ TAX FREE:
It is important to understand that CPTPP applies to duty assessments but not taxes. All goods - even those cleared duty free - are subject to Malaysian taxes (including 6% SST).
Shipping to Malaysia via Canada Post
Canada Post offers the lowest cost for individuals shipping small parcels to Malaysia.
Pos Malaysia Berhad is the Malaysian postal delivery service the handles shipments sent from Canada via Canada Post.
Canada Post Delivery Options to Malaysia include:
Shipping small parcels to Malaysia via Canada Post
- Canada Post Small Packet to Malaysia: Surface and Air options
- Canada Post Tracked Packet to Malaysia: Delivery within 3 weeks
Shipping Malaysia from Canada Post parcel post options
- Canada Post International Parcel to Malaysia: Surface
- Canada Post Xpresspost to Malaysia: Delivery within 2 weeks
Shipping Malaysia from Canada via FedEx and UPS
FedEx and UPS are North America's largest carriers and, along with DHL, offer reliable express delivery to Malaysia from Toronto, Montreal, Vancouver, Edmonton and Calgary. However, FedEx and UPS can expensive for small and medium companies who are unable to get significant discounts.
FedEx and UPS shipping Malaysia from Canada delivery options include:
- International air express priority to Malaysia
- International economy air from Canada to Malaysia. As mentioned above, some carriers have suspended economy shipping option to Malaysia and other APAC countries.
Shipping Parcels to Malaysia via Jet Worldwide Canada
Jet Worldwide is backed by over 40 years of international logistics expertise. Our team offers transparency, advise on best practices (which often involves recommending alternative options) and unique global parcel shipping solutions.
Contact Jet's logistics professionals for a quote for shipping to Malaysia.
Shipping via Purolator Canada to Malaysia
Purolator (a subsidiary of Canada Post) is a leading parcel carrier in Canada and provides delivery to Costa Rica via other carriers - such as UPS Canada.
Shipping Options FROM Malaysia TO Canada
The Options for shipping from Malaysia to Canada include air and ocean carriers, as well as Fedex, UPS and DHL. The Malaysian post is the best option for persons sending small packages and personal items to Canada.
Duty Free Shipping FROM Malaysia TO Canada: Low Value Duty Free
Canadian Customs (CBSA) has harmonized the value for which formal proof of origin is waived at CAD$3300, for all of Canada’s current Free Trade Agreements (including CPTPP)
This means that, proof of origin documentation (i.e., Certification of Origin, Certificate of Origin, origin declaration), is not required in order to apply preferential tariff treatment for shipments valued at CAD$3,300 or less.
Proof of Origin for Shipments Valued at CAD$3,300 or Less
For commercial importations valued at CAD$3300 or less, customs will accept a certifying statement on the Commercial Invoice stating that the goods originate in Malaysia and qualify for preferential treatment under CPTPP
The statement must include either the country of origin for the imported goods, reference that the request is being made under CPTPP provisions. Here is a sample statement:
“I hereby certify that the goods covered by this shipment qualifies as an originating good for the purposes of preferential treatment under Canada Trans Pacific Free Trade Agreement CPTPP
Important Note: Claims for preferential tariff treatment over the CAD$3300 low-value threshold must be supported by the applicable proof of origin required by CPTPP . Refer to the Canadian Customs CBSA ‘Origin of Goods' webpage to confirm the requirements for your shipment.
Note: This post and all Jet Worldwide content is for general information only. We are proud to be a leading online resource for international shipping. Our best advice is emphasize the importance of confirming compliance with the exporter/ importer and regulatory authorities prior to shipping.
