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Malaysia Import Duty Rate for Passenger Cars

HS 8703 · Motor vehicles for transport of persons

Malaysia MFN Import Duty Rate

Live

30%

on CIF value

ASEAN CBU: lower

CBU (Completely Built-Up) import duty 30% + excise duty (75–105% on engine capacity/price). Total effective rate can exceed 100%. CKD (kits) attract lower duty.

How duty is calculated

CIF value

Product cost + international freight + insurance

Import duty (30%)

Applied to CIF value. EU, UK, and most countries use CIF.

Sales & Service Tax (SST) (10%)

Applied to CIF value + duty. Collected at customs.

Use our Landed Cost Calculator to compute the full cost including freight, brokerage, and last-mile delivery.

Worked example: passenger cars worth US$10,000

A commercial shipment invoiced at US$10,000 with US$900 of international freight and insurance. Malaysia charges duty on the CIF value (goods + freight + insurance), so the duty base is US$10,900. Customs converts the amount to MYR at the official exchange rate on the day of import.

Charge	At 30%
Import duty	$3,270
Sales & Service Tax (SST) (10%)	$1,417
Total paid at the border	$4,687

Sales & Service Tax (SST) is usually recoverable for a registered business, so the cost that stays with you is the duty. Excise, anti-dumping duties and broker fees are not included.

Classifying passenger cars correctly

Heading 8703 covers motor cars and other vehicles principally designed to carry people, split by engine type and size: petrol, diesel, hybrid and fully electric (8703.80).

Pick-ups and vans built mainly for goods go to 8704
Electric vehicles have their own subheading and often a different rate or incentive
Vehicles shipped as CKD kits may qualify for lower assembly rates

Compliance. Cars must meet the destination's homologation and emissions rules (EU whole-vehicle type approval, US FMVSS and EPA certification) before they can be registered.

Importing into Malaysia: what you need

The Royal Malaysian Customs Department (JKDM) clears goods through the uCustoms system; rates follow the ASEAN Harmonised Tariff Nomenclature in the Customs Duties Order.

Registration. Company registration with SSM and a customs client code; most commercial imports go through a licensed forwarding agent.

Low-value shipments. Goods worth RM500 or less sold online by overseas sellers carry 10% Low Value Goods (LVG) sales tax collected at checkout by registered sellers.

Documents customs will ask for

Customs declaration K1
Commercial invoice and packing list
Bill of lading or air waybill
Certificate of origin (ATIGA Form D, RCEP, CPTPP) for preferential rates
Approved Permit (AP) for controlled items such as vehicles, steel and some electronics

Charges on top of duty

Sales tax 5% or 10% on most taxable goods (some goods exempt)
Excise duty on vehicles, alcohol and tobacco
Anti-dumping duties on some steel and chemical products

Watch out. Check whether the product needs an Approved Permit before shipping — goods arriving without one are held at the port.

Frequently asked questions

What is the import duty rate for Passenger Cars in Malaysia?

The MFN (Most Favoured Nation) import duty rate for Passenger Cars (HS 8703) in Malaysia is 30% on the CIF value. CBU (Completely Built-Up) import duty 30% + excise duty (75–105% on engine capacity/price). Total effective rate can exceed 100%. CKD (kits) attract lower duty.

Is Sales & Service Tax (SST) charged on Passenger Cars imports to Malaysia?

Yes. Malaysia charges Sales & Service Tax (SST) at 10% on the CIF value plus any import duty. This applies to virtually all commercial imports.

Are there FTA rates available for Passenger Cars in Malaysia?

Yes. ASEAN CBU: lower. ATIGA (ASEAN), RCEP, CPTPP, Malaysia–Japan EPA, Malaysia–Australia FTA (MAFTA) are the key agreements — verify origin requirements with your customs broker.

How is import duty calculated for Passenger Cars entering Malaysia?

Duty is calculated on the CIF value of the goods. CIF value includes the product cost, international freight, and insurance. The MFN duty of 30% is applied to this value. Sales & Service Tax (SST) (10%) is then applied on the duty-paid value.