The Department of Labour in Malaysia has stated that the ‘flexible working culture’ is dominating the minds of employers and employees alike.
In response, a number of companies have set up flexible working arrangements to meet the rising demand of employees who want to work from home.
However, this trend of working from home is not restricted to the private sector. In fact, the public sector has also incorporated this into its operations.
Furthermore, there is a new type of job which is being created by the government. This new job is known as Duty-In-Arrears’ or custom duty in Malaysia.
In this article, we will discuss the key facts about custom duties in Malaysia.
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The Reason Behind Introducing Custom Duties
In Malaysia, the government has been facing the problem of unemployment ever since the economic slowdown.
With more people out of work and in need of assistance, the government is looking for new ways to generate revenue. One way they are doing this is by introducing customs duties that have not been applied before.
One potential reason behind implementing custom duty is to reduce the trade deficit. In 2013, Malaysia’s trade deficit was $33 billion, an increase from $27 billion in 2012.
This means that the country imports more than it exports which leads to higher costs of living as well as lower standards of living in general. Finally, it is possible that the government hopes that in order to recover some losses from recent economic events, they will be able to generate income by imposing this new system.
Types of Goods Subjected to Custom Duties
The following are the types of goods that are subjected to customs duty in Malaysia:
– Goods that are imported for resale
– Goods that are imported for processing by a company
– Goods that will be exported by a company
– Items that are subject to sales tax
– Goods where the seller needs a permit to sell
– Certain items are subject to excise duty, such as cigarettes and alcoholic beverages.
How to Pay Customs Duty in Malaysia
Custom duties in Malaysia are an obligation that comes with importing goods. The term ‘custom duty’ covers a range of charges that are incurred when goods are imported into the country.
In order to have these duties paid, one has to present the goods at the customs house and pay the relevant fees based on the price of the goods and their classification. The extent of custom duties depends on how much the buyer pays for the importation of goods.
The other type of customs duty is known as duty-in-arrears’ which means that it is calculated based on what has already been paid by another party.
This type of duty must be paid by someone who owes money to another person but has failed to do so on time. When this happens, Customs will seize any assets belonging to that person as payment for what they owed.
For example, let’s say your company has to pay a certain amount of money to your supplier for an order you placed last month but haven’t yet paid them.
You won’t be able to pay them off until next month unless you have some other form of income coming in, such as profits from another business or investment account.
If this isn’t possible, you can request from Customs a ‘duty-in-arrears’ in order to satisfy what you owe your supplier before they put out a lien on your asset and commence legal action against you!
Customs Duty is a tax imposed by the Customs Department, Malaysia on goods imported into Malaysia. The reason behind introducing custom duties is to protect the domestic industries by making the imported goods more expensive.
There are various types of goods subject to customs duty such as Toys, Arms and Ammunition, Medicines, Alcoholic Beverages, Gold and Silver Jewellery, Watches and Clocks, Leather Goods, Footwear, and Articles of Textile.
Customers can avoid paying customs duty by making a declaration at the customs counter before declaring goods at the customs office. They can also avoid paying customs duty by making a declaration by presenting a letter from the Malaysian company that imports the goods from abroad.
Customers must pay customs duty by presenting the goods to customs for inspection and declaring the goods to Customs at the customs office.
Customers can also avoid paying customs duty by presenting a letter from the Malaysian company that imports goods from abroad.