Do You Need to Pay SST When Importing from China to Malaysia? A Complete Guide for Importers

Does SST Apply to Goods Imported into Malaysia?

A Practical Guide for Importers Shipping from China to Malaysia

One of the most common questions we receive from importers is:

''Will my shipment be subject to SST?''

''Is SST included in Door-to-Door shipping?''

''Does every imported product incur 6% SST?''

''Why do different freight forwarders quote different tax charges?''

The answer is not as simple as ''yes'' or ''no.''

Malaysia’s import taxation system consists of several different taxes, not just SST. The applicable taxes depend on the product classification, HS Code, import method, customs declaration, and prevailing customs regulations.

Understanding how these charges work before shipping helps importers estimate their total landed cost more accurately and avoid unexpected expenses during customs clearance.

What is SST?

SST stands for Sales and Service Tax, Malaysia’s current indirect tax system.

It consists of two separate components:

Sales Tax

Sales Tax applies to certain imported goods and locally manufactured products.

Depending on the product category, the applicable Sales Tax rate may be:

• 5%
• 10%
• Other specific rates prescribed under Malaysian tax legislation

Not all imported goods are subject to Sales Tax. Many essential goods and exempted products are either zero-rated or exempt under Malaysian law.

Service Tax

Service Tax applies to prescribed taxable services provided in Malaysia.

Examples include:

• Logistics services
• Warehousing
• Freight forwarding
• Professional services
• Advertising
• Hospitality
• Food & Beverage
• Digital services

Certain logistics-related services may be subject to Service Tax under Malaysia’s SST framework, depending on the nature of the service and the applicable legislation.

What Taxes May Apply to Imported Goods?

Many importers assume that SST is the only tax payable when goods enter Malaysia.

In reality, an import shipment may involve one or more of the following:

• Import Duty
• Sales Tax
• Excise Duty (for products such as alcoholic beverages, tobacco and certain motor vehicles)
• Service Tax (applicable to certain taxable logistics or related services)

The taxes payable depend on the product classification and the applicable Malaysian customs regulations.

Why Do Different Products Have Different Tax Rates?

Malaysia classifies imported goods using the Harmonized System (HS) Code.

Each HS Code is assigned its own customs treatment, which determines whether the goods are:

• Duty-free
• Subject to Import Duty
• Subject to Sales Tax
• Subject to Excise Duty
• Eligible for exemptions under specific legislation or trade agreements

For example, products such as:

• Furniture
• Lighting products
• Electronics
• Food products
• Cosmetics
• Machinery
• Medical equipment
• Apparel
• Hardware

may all be subject to different tax treatments.

Even products within the same industry can carry different tax liabilities depending on their material, function, or intended use.

For this reason, professional freight forwarders normally request the following information before providing tax guidance:

• Product description
• Material
• Intended use
• Brand (if applicable)
• Model number
• HS Code (if available)

This enables a more accurate assessment of the applicable import requirements.

Does Door-to-Door Shipping Include SST?

It depends on the shipping arrangement.

Under DDP (Delivered Duty Paid) terms, the freight forwarder generally arranges:

• Import customs clearance
• Applicable import duties and taxes (subject to quotation scope)
• Final delivery to the consignee

The importer typically does not need to manage customs clearance directly.

Under DAP (Delivered at Place) terms, import duties, taxes and customs charges are generally the responsibility of the consignee.

If Customs assesses taxes during import clearance, the consignee will normally be required to pay the applicable charges before the shipment is released.

When comparing freight quotations, importers should confirm whether the quotation includes:

• Import customs clearance
• Import duties and taxes
• SST (where applicable)
• Delivery charges
• The applicable Incoterms (DDP, DAP, or others)

A lower freight rate does not always mean a lower overall import cost.

Why Do Freight Forwarders Quote Different Prices?

International freight quotations include far more than transportation alone.

Depending on the service provider, a quotation may include:

• Customs clearance
• Import handling
• Final delivery
• SST (where applicable)
• Fuel surcharge
• Port and terminal charges
• Documentation fees

Other quotations may only cover the transportation cost.

For this reason, businesses should compare the total landed cost, rather than simply comparing the freight rate per kilogram or per cubic metre.

How Newfly Assists Importers

As a professional ChinaMalaysia Door-to-Door freight forwarding company, Newfly assists customers before shipment by reviewing:

• Whether the cargo is classified as General Cargo or Sensitive Cargo
• Whether import permits or additional regulatory approvals are required
• The most suitable customs clearance solution
• Whether the selected shipping service includes import duties and taxes
• Whether SST or other import taxes may apply
• Any additional documentation required before shipment

Our objective is not simply to move cargo, but to help customers understand the import process, anticipate potential customs requirements, and estimate their total landed cost before the shipment departs.

Frequently Asked Questions

Is SST the same as Import Duty?

No.

SST forms part of Malaysia’s tax system, while Import Duty, Excise Duty and other statutory charges are separate taxes that may also apply depending on the product.

Does every imported product incur SST?

No.

Whether SST applies depends on the product classification, HS Code, customs legislation, and the applicable tax schedule.

Can a freight forwarder decide whether SST is payable?

No.

The final determination of duties and taxes rests with the Royal Malaysian Customs Department, based on the declared goods and the applicable customs and tax legislation.

Does Door-to-Door shipping mean there are no import taxes?

Not necessarily.

Door-to-Door refers to the transportation arrangement only.

Whether import duties and taxes are included depends on the agreed Incoterms, the shipping service selected, and the scope of the quotation.

What if I do not know my HS Code?

No problem.

Simply provide your product photographs, specifications, material details, intended use, or your supplier’s product link.

Our team can assist with an initial cargo assessment and recommend a suitable shipping solution. However, the final tariff classification and tax assessment remain subject to the determination of the Royal Malaysian Customs Department.