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Malaysia Import Duty Rate for Used & Second-Hand Cars

HS 8703 · Used motor vehicles for transport of persons

Malaysia MFN Import Duty Rate

Live

30%

on CIF value

Same customs duty as new cars (30% CBU). Excise duty applies. Malaysia tightly restricts used car imports — approval from MITI required.

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: used & second-hand 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 used & second-hand cars correctly

Used cars share heading 8703 with new ones; the age, engine size and fuel type of the vehicle decide the subheading and, in many countries, the excise.

Many countries cap vehicle age (Kenya eight years, several others five) or ban used imports outright
Customs often values used cars from official price guides rather than the invoice
Right-hand-drive vehicles are banned for registration in some left-hand-drive markets

Compliance. Expect a pre-shipment roadworthiness or radiation inspection (e.g. JEVIC or QISJ for cars from Japan) and deregistration papers from the country of export.

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 Used & Second-Hand Cars in Malaysia?

The MFN (Most Favoured Nation) import duty rate for Used & Second-Hand Cars (HS 8703) in Malaysia is 30% on the CIF value. Same customs duty as new cars (30% CBU). Excise duty applies. Malaysia tightly restricts used car imports — approval from MITI required.

Is Sales & Service Tax (SST) charged on Used & Second-Hand 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 Used & Second-Hand Cars in Malaysia?

Malaysia has free trade agreements with ATIGA (ASEAN), RCEP, CPTPP, Malaysia–Japan EPA, Malaysia–Australia FTA (MAFTA). Check whether your origin country qualifies for a preferential rate on HS 8703.

How is import duty calculated for Used & Second-Hand 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.