FREIGHT THAILAND 🇹🇭 – MALAYSIA 🇲🇾| Rates – Transit Times – Taxes

Introduction

If you got to the point of asking yourself how you should proceed to ship your products between both countries, you are most likely about to launch the process.

At SIAM Shipping, we decided to build up a detailed shipping guide, in order to tackle in one article all the most important topics. In fact, we are aware that finding relevant information on the internet is not easy. We are able to provide you with advices and details thanks to our strong expertise acquired over several years of experience on the Asian market.

No matter if you are a first-time importer/exporter, or if you are already used to handling such processes… No matter if you need a one-time delivery, or if you need us to set up regular shipments between both countries: Siam Shipping has a solution for you!

This ad hoc article is here to give you all the valuable information to get started in the best condition with your shipment.

Why sea freight?

*Because as well as shipping at a low cost, sea freight also comes with the possibility to ship high volumes.

SIAM Shipping will provide you with all the sea freight-related services such as FCL, LCL, Bulk Cargo, and so on.

The total cost of your shipment will not be the same, depending on the services you need. The price will be different whether you just need a CFR shipment (freight service), DAP (delivery at place, or ‘door-to-door’ service), or DAT (delivery at terminal), etc.

At SIAM Shipping, we are 100% devoted to creating tailored services for our customers. In this way, our pricing strategy is based on a case-by-case method, to come up with the most accurate and tailored quotation to our customers.

Air freight transit times

Instead of just coming up with approximate transit times, we are convinced that providing information about the various steps that come with air freight shipments is a better solution.

Check here some rough estimates:

*Keep in mind all the following logistic steps have to be undertaken when it comes to air cargo:

• Step 1 – Gathering details about the shipment: type of cargo, weight, destination, service required…
• Step 2 – SIAM Shipping closes shipment with the airline company
• Step 3 – Storage at warehouses prior to departure
• Step 4 – Customs clearance
• Step 5 – Cargo arrival and delivery services (if required)

Air freight rates 

*How do you calculate rates when it comes to air shipments?  

Here is an explanation:

The rule is to multiply your parcel’s volume in CBM by 167 for air freight.

As an example, if your parcel comes with the following dimensions: W: 140, H: 90, L:70, the total volume is 0.882m3. If you multiply it by 167, the volumetric weight of your parcel is 147,29kgs.

This is an easy way to calculate rates. SIAM Shipping operates in full transparency towards its customers when it comes to pricing. Then, the rates are likely to vary depending on the services you require.

The price will naturally be higher for a door-to-door service, as compared to a regular door-to-airport service. Again, we decided to quote every single shipment through a case-by-case basis, in order to offer accurate and transparent quotations.

What duties and taxes will I pay for my goods ?

The required documentation has to be properly prepared and provided to the local customs, to ensure a hassle-free clearance of your goods.

The following documents have to be provided to the Malaysian customs: 

• Invoice
• Packing list
• Delivery letter
• Leaflet, catalogue or other related documents
• Insurance certificate, if insured
• Bill of lading
• Letter of credit (if used)
• Permit, licenses/ certificates
• Proof of fare payment
• A declaration form (Customs Form No. 1) that mentions the number, description of packages/ crates, value, weight, quantity and type of goods and country of origin
• Completed Custom forms should be submitted to Customs offices at the place where the goods are imported or exported.
• All duties/ custom taxes imposed on imported goods will need to be paid in advance before the goods can be released. Taxes to be paid include import tax and sales tax.

Import licenses are not required for all products. Having a general overview of Malaysia’s licensing policy is important when considering importing into this country, in order to avoid troubles with local authorities.

Let's have a look on the previous example!

If we now fill all information needed by the customs, we will be able to determine what will be the duties and taxes charged on your shipment.

Import Tariffs and Taxes

Malaysia’s tariff rates range from 0 to 50%, applying ad valorem rates. Nevertheless, the average duty paid for imported industrial goods is 6.1%. Higher rates are applied for goods for which production already exists within the country, as well as ‘sinful’ goods such as pork and alcohol.

Reduced tariffs or tariff exemptions are applied for raw materials that are not easy to source within the country, and used for the manufacture of exported goods.

*Malaysian has been applying a GST on imported goods of 6%.

Customs process