Freight Shipping between Malaysia and Turkey | Rates – Transit times – Duties and Taxes

How to calculate duties & taxes when importing from Malaysia to Turkey?

Navigating the complex landscape of international taxes and duties can often feel akin to a maze.

Fortunately, there's a methodology to the madness. The vital pieces of the puzzle in calculating these customs duties dive into details such as the country of origin, the Harmonized System code (HS code), the customs value of the goods, the tariff rate applicable, and other pertinent taxes and fees that might be linked to your specific product type.

Now, our journey through this bureaucratic labyrinth starts at a straightforward point - identifying the country where your goods were birthed, that is, where they were manufactured or produced. This primary step forms the cornerstone of how you will estimate duties and taxes when importing from Malaysia to Turkey.

This little nugget of information can significantly shape the financial landscape of your shipping expedition. So, let's start at the source and keep adding pieces until this puzzle forms a clear picture of your import journey.

Step 1 - Identify the Country of Origin

Knowing where your product originates may seem plain as day, but hold on! It's the foundation stone for your import adventure from Malaysia to Turkey.

Why, you ask?

1. Precise knowledge about this allows you to accurately use the Harmonized System (HS) to code your goods.
2. It helps you underpin a product's eligibility under specific Turkey-Malaysia trade agreements. For instance, the existence of a 'Re-Export Program'. This will determine if you get duty-free access or not.
3. Your choice to import may be affected by country-specific restrictions imposed by Turkey, both for environmental and safety reasons.
4. Customs requires documentary proof of the country of origin to determine if the goods are legally permitted into Turkey.
5. Lastly, incorrect documentation may lead to delays, fines, and a bumpy import ride!

So remember, a journey of a thousand miles starts with the correct country of origin! Now get that HS code ready!

Step 2 - Find the HS Code of your product

The Harmonized System (HS) code is essentially an international nomenclature for the classification of products. This global standardization system allows countries worldwide to classify traded goods on a common basis for customs purposes. These codes play a pivotal role in determining how much and what kind of duties will be applied to a product.

There are several ways to find the HS Code of your product. In most cases, the simplest approach is to reach out to your supplier. They should be quite familiar with the products they're exporting and the relative regulations, which include the relevant HS codes.

But what if you can't obtain the HS code that way? Don't worry, because we've got you covered. We've outlined an easy step-by-step process to help you find it yourself.

• Firstly, visit the Harmonized Tariff Schedule online tool. Here, you'll find a comprehensive list of HS codes you can use for your reference.
• Next, enter the name of your product in the search bar. It's that simple. You're searching for relevant product names or keywords that best describe your product.
• Once your search results appear, look under the Heading/Subheading column. This is where you'll find your product's HS code.

It's crucial to note the importance of accuracy when selecting an HS Code. Choosing the wrong HS Code could result in shipping delays and possibly even fines - a situation we all want to avoid!

Here's an infographic showing you how to read an HS code.

Step 3 - Calculate the Customs Value

Feeling overwhelmed by the term 'Customs Value'? Not to worry. It's different from your product's price. The Customs Value involves more than just the price of your goods from Malaysia. It's the 'CIF value', which stands for your products' Cost (in USD), insurance cost, and Freight cost combined.

For instance, if you bought goods for $1000, paid $200 for insurance, and spent $300 on shipping, your customs value for those goods would be $1500. It's crucial to get this right since your import duties and taxes in Turkey will be calculated based on this.

So, knowing your CIF value could save you from unexpected costs down the road. Handling logistics shouldn't be a guessing game, right? Stay ahead with accurate calculations.

Step 4 - Figure out the applicable Import Tariff

Import tariffs are essentially taxes imposed on imported goods. Their purpose is to protect domestic industries and maintain economic stability. In Turkey, the most common type of tariff used is the ad valorem tariff, which is determined as a percentage of the product's overall value.

To find the applicable import tariff when importing goods from Malaysia to Turkey, follow these steps:

1. Visit the TARIC Consultation Tool by the European Union. You can access it here.
2. Input the Harmonized System (HS) code corresponding to your product, and the country of origin - in our case, Malaysia.
3. Look up the duties and taxes applied to your product.

For instance:

• if you're importing plastic tableware (HS Code 392410) from Malaysia, you'll get an ad valorem tariff rate of 6.5% for your product category.
• to calculate import duties, you'll need to factor in Cost, Insurance, and Freight (CIF) costs. If your CIF is $10,000, your import tariff will be $10,000 x 6.5/100 = $650.

Take the time to understand and navigate this system, as accurate tariff classification can greatly impact your import costs and overall bottom line. It may seem daunting, but with practice and patience, it will become second nature.

Step 5 - Consider other Import Duties and Taxes

Apart from the standard tariff rate, there may be additional import taxes based on the country of origin and the nature of the product. Take excise duty for instance. Products such as alcohol or tobacco often attract additional taxes, with the rates varying widely.

For example:

• The excise duty on alcoholic beverages could range from 10% to 60% of the CIF value, although these are just estimates and actual rates may differ.
• In certain scenarios, anti-dumping taxes could apply. This typically happens when products are sold at less than their normal value, often damaging the industry in the importing country. Take the hypothetical case of importing steel from Malaysia; Turkey could impose a 4% anti-dumping tax to protect its domestic industry.
• Lastly, there's the Value Added Tax (VAT). In Turkey, the standard VAT rate is 18%, although again, this depends on the product type. For furnitures, for example, it could be 8%. The VAT is generally applied on the CIF value plus the tariff and other import taxes.

These extra charges can significantly impact your costs, so it's crucial to factor them in when planning your logistics budget. Remember, these are just examples, and actual rates can vary. Always double-check with official sources or consult with a customs expert for accurate information.

Step 6 - Calculate the Customs Duties

Customs duties in Turkey depend on several factors: the customs value of your goods, applicable VAT, anti-dumping taxes, and sometimes, excise duty. You can think of it in terms of a cumulative formula:

Customs Duties = (Customs Value x Customs Duty %) + (Customs Value x VAT %) + (Customs Value + Customs Duty + VAT) x Anti-Dumping Tax % + Excise Duty if applicable

Consider these examples:

1. Goods with a customs value of $10,000, a customs duty of 5%, but no VAT: Customs Duties = $10,000 x 5% = $500.
2. Goods with a customs value of $20,000, a customs duty of 10%, and 8% VAT: Customs Duties = ($20,000 x 10%) + ($20,000 x 8%) = $2,000 + $1,600 = $3,600.
3. Goods with a customs value of $30,000, a customs duty of 15%, 18% VAT, 5% Anti-Dumping Tax, and $1000 Excise Duty: Customs Duties = ($30,000 x 15%) + ($30,000 x 18%) + ($30,000 + $4,500 + $5,400) x 5% + $1,000 = $10,995.

Confused with the calculations? Don't worry. DocShipper takes care of every step of the customs clearance worldwide, ensuring you're not overcharged. Reach out and get a free quote within 24 hours.

Bill of Lading

Navigating the sea of import-export goods from Malaysia to Turkey? The Bill of Lading is your reliable ship's anchor. This essential document validates the ownership transition of your goods from the shipper to your hands. Think of it as a ticket that enables your products to cross oceans.

But don't fret about stacks of paper; in our digital era, a telex release lets you get the document electronically, saving you valuable time and reducing your paper trail. Now, if you’re using air freight, your ticket will be called an Air Waybill (AWB).

This little piece of digital paperwork is a game-changer for business transactions, strengthening your supply chain's speed and efficiency. Ensure you hold on to your Bill of Lading or AWB - it's your golden ticket for moving goods quickly and securely from Kuala Lumpur to Istanbul!

Packing List

Handling shipments between Malaysia and Turkey? Don't overlook your Packing List—a detail-oriented task that calls for your utmost scrutiny. Why? Customs authorities rely on it to verify actual contents versus declared contents.

It's your responsibility to ensure it accurately details product quantities, descriptions, HS codes, and total weight, whether you're shipping via sea or air. Imagine: Customs stumble upon an inconsistency; your shipment could be delayed, incurring unnecessary costs.

Navigation through this stringent process becomes easier when accuracy is a priority, bringing you a step closer to a smooth, hitch-free transit for your goods. Yes, a well-prepared Packing List is that vital.

Commercial Invoice

The Commercial Invoice is a crucial document for exporting goods from Malaysia to Turkey, and minor inaccuracies can stall your shipment at customs. It needs to detail essential information—product description, HS codes, unit value, total value, and the terms of delivery. Remember, your invoice must align impeccably with the B/L or Air Waybill.

Picture a shipment of electronic components; any discrepancies in the description or codes on your invoice could cause customs officers to raise red flags, delaying your cargo and adding unnecessary costs.

Tip: Double-check details and consistency across documents to ensure smooth customs clearance.

Specifically for Turkey, consider getting your invoice certified from Turkish Consulate in Malaysia to avoid potential difficulties at the Turkish customs. It's a little detail but might save you a world of hassle.

Certificate of Origin

Ensuring your shipment from Malaysia to Turkey goes smoothly hinges significantly on the Certificate of Origin. This critical document validates the goods' originating country, influencing customs duty rates.

The benefit? Preferential duty rates under the Turkey-Malaysia Free Trade Agreement, which can save your business a hefty sum.

For example, let's say you're exporting palm oil produced in Malaysia. By mentioning Malaysia as the country of manufacture on your Certificate of Origin, you can avail of lower tariff rates, streamlining your shipping process and boosting your bottom line.

So, always remember to catalogue your goods' origin accurately - the fiscal benefits are too good to pass up.

Certificate of Conformity (CE standard)

Understandably, shipping between Malaysia and Turkey can seem daunting, especially when dealing with important documents.

One you'll frequently encounter is the Certificate of Conformity (CE standard). This certification is not merely a stamp of quality assurance. Rather, it denotes that a product has met the European Union's health, safety, and environment protection standards - key elements that matter when entering the European Market.

While Turkey is not a member of the European Union, it accepts CE markings, which makes your shipping process smoother. However, don't confuse it with the US standards or quality assurance norms.

Remember, getting it right saves you from unnecessary hold-ups, enabling you to deliver promptly to your Turkish clients. As seen, the CE certificate isn't a bureaucratic hurdle, but a valuable tool to expand into European markets.