CUSTOMS DUTIES: BHUTAN TO MALAYSIA

Overview of Customs Duties from Bhutan to Malaysia

Trade between Bhutan and Malaysia is governed by Malaysia's customs regulations and tariff structure. Malaysia maintains a relatively moderate tariff regime with a simple average applied tariff of 6.1 percent for industrial goods. However, certain product categories are subject to significantly higher duties, including specific rates for alcohol, wine, poultry, and pork products. Exporters from Bhutan must understand Malaysia's duty structure, documentation requirements, and regulatory framework to ensure smooth customs clearance and compliance with Malaysian import regulations.

General Duty Rates

Product Category	Tariff Rate	Notes
Industrial Goods (General)	6.1% (Simple Average)	Standard applied tariff for most industrial products
Alcohol and Wine	Specific Duties (Higher Effective Rate)	Subject to specific duties representing considerably higher effective tariff rates
Poultry Products	Specific Duties (Higher Effective Rate)	Specific duties apply; higher effective tariff rates than standard rates
Pork Products	Specific Duties (Higher Effective Rate)	Subject to specific duties with considerably higher effective rates
Products with Significant Local Production	Varies by HS code - contact our experts	Duties for tariff lines with significant local production are often higher than standard rates
Other Goods (Unspecified)	Varies by HS code - contact our experts	Consult Malaysian Customs or tariff lookup tools for specific product classifications

Malaysia also applies Sales and Services Taxation (SST) on imported goods at rates of 5 or 10 percent, or specific rates depending on product category. This is in addition to customs duties and must be factored into total landed costs.

Required Documentation

• Commercial Invoice – Detailed invoice showing product description, quantity, unit price, and total value
• Packing List – Complete breakdown of contents, weights, and dimensions for each shipment
• Bill of Lading or Airway Bill – Proof of shipment and transportation details
• Certificate of Origin – Documentation confirming goods originate from Bhutan
• Import Declaration Form – Official Malaysian customs import declaration
• Product-Specific Certificates – Health certificates, quality certifications, or licenses as required by product type
• Harmonized System (HS) Code Documentation – Proper classification codes for all goods
• Insurance Documents – If applicable to the shipment

Important Regulations

• All goods must be properly classified according to the Harmonized System (HS) Code for accurate duty assessment
• Import duties are calculated on a value-add basis, typically assessed on the customs value of goods
• Sales and Services Taxation (SST) is applied to manufactured goods and imported taxable goods at 5 or 10 percent depending on product category
• Certain product categories including alcohol, wine, poultry, and pork are subject to specific duties that may result in considerably higher effective tariff rates
• Products must comply with Malaysian labeling and marking requirements
• Some goods may be prohibited or restricted from import; verification with Malaysian Customs is recommended before shipment
• All import documentation must be submitted to Malaysian Customs for processing and clearance
• Exporters should maintain accurate records and documentation for audit and compliance purposes

Trade Agreements

Malaysia is party to various regional and bilateral trade agreements that may provide preferential tariff treatment. Bhutanese exporters should investigate whether goods qualify for reduced or duty-free treatment under applicable trade agreements. These may include ASEAN trade frameworks and other regional trade arrangements. To determine eligibility for preferential rates, exporters should consult with Malaysian Customs authorities or qualified customs brokers who can verify agreement eligibility and ensure proper documentation of origin.

For specific tariff rates on individual products, use the Customs Info Database tariff lookup tool available through official trade resources, or contact Malaysian Customs directly for accurate duty assessments on your specific goods.