IMPLEMENTATION OF CUSTOMS DUTY ORDER 2017
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1 IMPLEMENTATION OF CUSTOMS DUTY ORDER 2017 Outreach Program by Royal Malaysian Customs Department and DagangNet Technologies Sdn Bhd Date : 23 March 2017 Venue : SFFLA Port Klang Copyright Dagang Net Technologies Sdn. Bhd. All Rights Reserved
2 CONTENTS INTRODUCTION IMPLEMENTATION FREE TRADE AGREEMENT TARIFF CODE OTHER CUSTOMS SUBSIDIARY ORDER IMPACT ANALYSIS SELECTIVITY PROCESS
3 INTRODUCTION Royal Malaysia Customs Department had reviewed the current Customs Duty Order 2012 (PDK 2012) to be in line with the tariff codes changes done by the World Customs Organization (WCO), which happens in every five years. This new Customs Duty Order will replace the PDK 2012 currently in use. The new Customs Duty Order will involve the changes in the number of digits, from 9 digits to 10 digits as well as the tariff structure This Customs Duty Order was gazzetted on 3rd January 2017 and will be fully enforced on 1 April All declarations for importations and exportations, previously used the PDK 2012 and ASEAN Harmonised Tariff Nomenclature 2012 (AHTN 2012) will be replaced with PDK 2017). PDK 2017 is available at
4 PDK 2012 VS PDK 2017 Malaysian Tariff Book (2 NOMENCLATURE) 1. Perintah Duti Kastam (PDK) 2012 (9 digits) 2. Perintah Duti Kastam Barang-barang berasal dari negeri-negeri ASEAN (Asean Harmonised Tariff Nomenclature) AHTN 2012 (10 digits) Malaysia towards single Tariff Book (1 NOMENCLATURE) 1.Ministry of Finance Approval on 30 Januari Perintah Duti Kastam 2017 (10 digits structure) gazetted on 3 January 2017 PDK 2012 (9 digits ) AHTN 2012 (10 digits) PDK 2017 (10 digits)
5 TARIFF CODE FOR FREE TRADE AGREEMENT (FTA S) # Free Trade Agreement (FTA) Tariff Code to be used 1 Asean Trade In Goods Agreement (ATIGA) PDK 2017 (10 digits) 2 Asean China (ACFTA) AHTN 2012 ( 10 digits) 3 Asean Korea (AKFTA) AHTN 2012 ( 10 digits) 4 Malaysia Turki (MTFTA) AHTN 2012 (10 digits) 5 Asean - Australia New Zealand (AANZFTA) PDK 2012 (9 digits) 6 Malaysia Australia (MAFTA) PDK 2012 (9 digits) 7 Developing 8 Countries (D8) PDK 2012 (9 digits) 8 Asean Japan (AJCEP) PDK 2007 (9 digits) 9 Malaysia Japan (MJEPA) PDK 2007 (9 digits) 10 Malaysia Pakistan (MPCEPA) PDK 2007 (9 digits) 11 Malaysia New Zealand (MNZFTA) PDK 2007 (9 digits) 12 Asean India (AIFTA) PDK 2007 (9 digits) 13 Malaysia India (MIFTA) PDK 2007 (9 digits) 14 Malaysia Chile (MCFTA) PDK 2007 (9 digits) Note :D8 Countries - Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey.
6 OTHER SUBSIDIARY CUSTOMS ORDER # Customs Subsidiary Order Tariff Code to be used 1 Excise Duties PDK 2017 (10 digits) 2 Excise Duties (Motor Vehicles) (Fees) PDK 2017 (10 digits) 3 Goods and Services Tax (Zero Rated Supply) PDK 2017 (10 digits) 4 Customs Order (Anti-Dumping) PDK 2017 (10 digits) 5 Customs Order (Prohibition of Imports) PDK 2017 (10 digits) 6 Customs Order (Prohibition of Export) PDK 2017 (10 digits) 7 Customs Order (Safeguards Duties ) PDK 2017 (10 digits) 8 Customs Order (Prohibition of Transfer/Movement) PDK 2017 (10 digits)
7 IMPACT ANALYSIS Impact to System Sistem Maklumat Kastam (SMK) DagangNet s National Single Window System Permit Issuing Agencies System Impact to business process & operation Transition period Implementation
8 IMPACT ANALYSIS New Version edeclare : new error code for edeclare 243 where the tariff does not match special treatment selected mycargo2u : Download effective 24 March usage 1 st April 2017 Alternative URL : Work in progress :
9 IMPACT ANALYSIS All Dagang Net systems will be temporarily disabled for two (2) hours from 2200 to 2400 hours on 31 March 2017 All submission using new version is effective 1 st April :01 hours
10 IMPACT TO BUSINESS PROCESS & OPERATION Customs Declarations (K1,K2,K3,K8,K9) Import & Export Permit and STA Permit Free Trade Agreement FTA s still using Tariff Code PDK 2012 (9 digits) and Tariff Code AHTN 2012 (10 digits) for Customs Declarations K1 & K9 Electronic Preferential Certificate of Origin (epco) and other Certificate of Origin
11 IMPLEMENTATION ACTION Special Treatment Code for respective FTA s and Tariff Code used # Free Trade Agreements Tariff Code to be used Special Treatment Code 1 Asean Trade In Goods Agreement (ATIGA) PDK 2017 (10 digits) 3 2 Asean China (ACFTA) AHTN 2012 ( 10 digits) 4 3 Asean Korea (AKFTA) AHTN 2012 ( 10 digits) 7 4 Malaysia Turki (MTFTA) AHTN 2012 (10 digits) G 5 Asean - Australia New Zealand (AANZFTA) PDK 2012 (9 digits) 9 6 Malaysia Australia (MAFTA) PDK 2012 (9 digits) E 7 Developing 8 Countries (D8) PDK 2012 (9 digits) F 8 Asean Japan (AJCEP) PDK 2007 (9 digits) 8 9 Malaysia Japan (MJEPA) PDK 2007 (9 digits) 6 10 Malaysia Pakistan (MPCEPA) PDK 2007 (9 digits) 5 11 Malaysia New Zealand (MNZFTA) PDK 2007 (9 digits) B 12 Asean India (AIFTA) PDK 2007 (9 digits) A 13 Malaysia India (MICECA) PDK 2007 (9 digits) C 14 Malaysia Chile (MCFTA) PDK 2007 (9 digits) D Note :D8 Countries - Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey.
12 IMPLEMENTATION ACTION Validation selectivity for K1 & K9 only Select Country of Origin Select Special Treatment Code Y Y/N N PDK 2017 AHTN 2012 PDK 2012 PDK 2007 PDK 2017 (ATIGA) 3 (ACFTA) 4 (AKFTA) 7 (MTFTA) G (AANZFTA) 9 (MAFTA) E (D8) F (AJCEP) 8 (MJEPA) 6 (MPCEPA) 5 (MNZFTA) (AIFTA) (MICECA) (MCFTA) B A C D
13 IMPLEMENTATION ACTION All Customs 2, Customs 3 and Customs 8 declarations, to be submitted on 1 April 2017 and onwards, shall use PDK 2017 Tariff Codes Importation and Exportation permits, STA permits, duty/tax exemptions and Customs Order, issued before 1 April 2017 are still valid and acceptable until the corresponding expiry dates
14 Thank You Dagang Net Technologies Sdn Bhd ( T) Tower 3, Avenue 5, The Horizon Bangsar South, No 8 Jalan Kerinchi, Kuala Lumpur. further assistance, please contact Careline at: or careline@dagangnet.com Copyright Dagang Net Technologies Sdn. Bhd. All Rights Reserved
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