Alo all sifu's,laupan,tailo,abang,datuk,adik n etc3x...
I'm sure some of you here bought stuffs from overseas e.g England,USA,Japan..so just wandering what are the procedures?I mean like besides the items price and postage..what else do i have to pay?customs??
for example...a gear knob that cost 45 UK pounds (including VAT)..whatever that mean..heheh..anywhere so i guess the cost of the gear knob n postal would be around rm270++.im a rite?please help...
Cheers
VAT is Value Added Tax. UK has it. It's something like a Sales Tax. It's part of the cost of purchasing the product. Nothing you can do about it.
Postage is dependent on location and weight and mode of transport (ship, air, priority overnight air express, etc) . Before you buy, ask for a postal quote from seller and ask them how long the shiping time will be. The safest and quickest postage services such as DHL priority courier are also the most expensive. You have to decide for yourself what is most suitable for your peace of mind and your budget. Generally, the more expensive options also have tracking numbers for your package so they can track the exact location of your package during the journey.
If package is going to be large and heavy, you can be sure that Customs will take a look at it. That means the possibility of import taxes and duties.
Do your homework beforehand. Go to Customs counter at the package clearance section of the post office. Tell them what item you are buying and ask the officer to check the Customs Classiification Handbook to see if the item is dutiable. Better still, if you have a friend working at an accounting / taxation company, get him/her to tell you. Customs have been known to give the wrong classification. Many times this is done as a measure to generate revenue for the State.
Remember to note down the Customs Number Code for the item, the Classification of the Item and the Rate of Duty. Note down the details even if there the item is exempt from duty.
Custom duty is :- The Item's Custom Tax Rate x [Invoice Value of Item in Local Currency + Postage Cost]. The exchange rate used by Customs is not the prevailing bank rate. Customs has their own rate (adjusted for current conditions). Ask them beforehand, what is the Customs exhange rate for the foreign currency in question.
Customs will determine the Item Classification and Tax Rate based on what you declared on your sales invoice in terms of Item Description and Invoice $$ Amount. What you declare and how you declare is your responsibility. I'm not going to tell you to break the law.
If Customs open your package and impose a duty, check the classification they attach to the item. Is it the same as the classification they previously told you before you brought the item into Malaysia ? There are hundreds of items listed in the Customs Classification Handbook. The classification language often overlap Often you will find that different officers will exercise their interpretation of the handbook differently. You may well end up with a classification different from the one another officer previously gave you.
If you are not satisfied with the Classification given on your item you can debate with the officer on what should be the proper classification. The classification that comes closes to describing your item is the correct classification. That is why you have to do your homework beforehand. Be firm but be polite at all times. Don't be a smart-ass to the officers. They are just doing their jobs.
Example :- I bought several DVD discs containing software for PC Games. The officer classified these as Software for TV Console Games. I disagreed and and told them these are not TV Console Games. These are PC Games software I showed them the classification for PC Games which has a 0% duty.
Do your homework.
If there is a reliable Malaysian distributor for the product, you might consider ordering the parts through a the distributor. Often, the distributor can get the stuff at wholesale prices and pass the savings to you as the consumer. Also, the distributor will take care of all the postage and clearances.
