Freight between Malaysia and France | Rates – Transit Times – Duties & Taxes

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

Estimating duties and taxes for shipments originating from Malaysia and headed to France involves a multi-step process that hones in on various factors. Firstly, understanding the origin of your products is crucial because this guides your calculation process. Every item that you intend to import has a country where it was manufactured or produced. Identifying this country of origin is your very first step in the process.

Knowing the Harmonized System (HS) code of your goods, the Customs Value (the total cost of the goods, including freight and insurance), as well as the Applicable Tariff Rate that France imposes on your particular category of goods are all essential elements in calculating your customs duties.

Additionally, be aware of other taxes and fees that France may apply based on the specifics of your import, such as Value Added Tax (VAT) or other specific industry-related taxes. These too, can add up and create a significant impact on your overall costings. Estimating these costs accurately allows you to prepare and plan ahead, ensuring a smooth and hassle-free customs experience.

Step 1 - Identify the Country of Origin

Understanding your item's country of origin is critical before starting your journey with HS codes. Here's why:

1. Varied Commercial Agreements: Malaysia has multiple commercial agreements with France, which may affect your tariff rates. For example, The European Union – ASEAN Free Trade Agreement offers preferential tariff rates for certain products manufactured in Malaysia.

2. Importance in Calculation: Authorities calculate customs duties based on the HS code and the product's country of origin.

3. Product Restrictions: France poses distinctive import restrictions on several products from Malaysia. Examples like palm oil require specific certifications.

4. Ease in Customs: Clear product origin assures a smoother customs clearance process.

5. Prevention of Legal Issues: Accurate knowledge of your product's origin can help avoid potential legal problems regarding unlawful import.

That's why you need to identify your product's origin. Confirm it's Malaysia, get your paperwork in order, understand your product’s applicable trade agreements and make note of any import restrictions. This will set you up for a hassle-free and efficient shipping journey, and pave the way for you to determine the HS code. Secure, accurate shipping is all about those initial details. Ready to step into a smoother customs process?

Step 2 - Find the HS Code of your product

The Harmonized System (HS) Code is a standardized system of names and numbers used by customs authorities around the world to classify imported goods. These numbers are important as they determine the import duties and taxes you'll pay, and are a global standard for describing the type of product that is being shipped.

A simple way to find the HS Code for your goods is to ask your supplier. They're likely to be familiar with the products they're selling, and the associated regulations, making this a straightforward approach.

However, if you can't get this information from your supplier, don't worry. We’ll guide you through a simple step-by-step process.

1. Visit the 'Harmonized Tariff Schedule',
2. In the search bar, enter the name of your product.
3. Look under the Heading/Subheading column. Here, you’ll find the HS code for your product.

Remember, accuracy is key when choosing the HS Code. A wrong code can lead to shipping delays and potential fines due to inaccurate customs paperwork so take the time to find the correct one.

Here's an infographic showing you how to read an HS code. This resource will help you understand the format and give you a better idea of what each number represents.

Step 3 - Calculate the Customs Value

Unraveling the mysteries of the 'Customs Value', are we? It's not as complicated as it might seem. This value is different from the price tag of your products. While you may have purchased goods at a certain figure, the customs value is calculated differently. It's termed as the CIF value, summing up the cost of your goods, international shipping, and insurance. Intrigued? Let's break it down.

Imagine you bought goods from Malaysia for $2000. Your freight costs total $300 and you've wisely insured your shipment at a cost of $100. Your CIF or customs value is $2400 ($2000 + $300 + $100). This value is pivotal in determining customs duties when importing to France or any other country. So, it's always smart to calculate this beforehand to keep your budget intact!

Step 4 - Figure out the applicable Import Tariff

Import tariffs, often referred to as customs duties, are taxes levied on goods imported into a country. In the context of shipping goods from Malaysia to France, which is part of the European Union (EU), the EU's unified customs tariff, known as the Common Customs Tariff (CCT), applies.

To identify the applicable import tariff, you'll need to use the TARIC System - European Customs. This online consultation tool helps you find the accurate tariff and other taxes for your product. Using the TARIC tool is straightforward:

1) Enter the identified Harmonized System (HS) code of your product and Malaysia as the country of origin.
2) The system will display the duties and taxes applied to your product.

As an example, let's take an HS code for rubber boots (HS Code 6401.10). If you enter this code and Malaysia into the TARIC system, you might find a Most Favoured Nation (MFN) tariff rate of 17%. Let's also assume the Cost, Insurance and Freight (CIF) cost of a shipment of these boots is $10,000. To calculate the import duties, you would multiply the CIF cost by the tariff rate (10,000 0.17), which gives you $1700. This means, for this specific shipment, your import tariff would be $1700.

Remember, correctly figuring out your import tariffs is critical to be compliant with customs regulations and to avoid any unexpected costs.

Step 5 - Consider other Import Duties and Taxes

In the realm of international trade, your cargo's journey doesn't end at arrival. It's crucial to note that besides the standard tariff rates, you may encounter extra duties subject to your product and its origin. Let's take a familiar situation for clarity. Suppose you're importing wooden furniture from Malaysia to France. Your shipment might be subject to an anti-dumping tax, imposed to protect French manufacturers from unfairly priced imports.

Additionally, there's the excise duty, which applies to specific goods like alcohol, tobacco, or energy products. Perhaps your cargo includes a special batch of Malaysian 'Tuak' wine. Excise duty will factor into your total costs.

But wait! The biggest piece of your tax puzzle is probably the Value Added Tax (VAT). In France, the standard VAT rate is 20%, calculated on the sum of the shipment's customs value, import duty, and other applicable taxes. For instance, if your customs value is $10,000 and the import duty is $2,000, the VAT would be 20% of $12,000, equating to $2,400.

Remember, these are examples. Actual rates may vary, and precise calculations should be sought from a customs expert or the official customs website. Armed with this knowledge, you are a step closer to a headache-free importing experience.

Step 6 - Calculate the Customs Duties

Calculating customs duties when importing goods from Malaysia to France can feel like navigating a labyrinth. No worries! The formula involves basic components like the customs value, VAT, anti-dumping taxes, and/or Excise Duty, turning it into a simple multiplication.

For instance, if you're importing goods with a customs value of $5000 with a customs duty rate of 3%, your total customs duty would be $150 (3% of $5000). Fantastic news if VAT isn't applicable to your goods.

However, in a scenario where VAT at 20% applies, the equation changes. The taxable amount now becomes $5150 ($5000+$150), and 20% VAT, equates to $1030. Your total duty would add up to $1180 ($150+ $1030).

If anti-dumping taxes of 2.5% and Excise Duty of 1% applies too, you'd first calculate customs duty as above, then add anti-dumping taxes ($128.75 = 2.5% of $5150) and the Excise Duty on the new total ($52.79 = 1% of $5278.7). The final total duty sums up to $1331.54 ($150 + $1030 + $128.75 + $22.79).

This process might feel convoluted, but keep in mind, we're here for you! DocShipper can take care of every step of your customs clearance process, wherever in the world that might be. We ensure you only pay what’s necessary. Get in touch for your free quote in less than 24 hours. No hidden costs, no worry, just smooth sailing.

Bill of Lading

When shipping goods between Malaysia and France, the Bill of Lading is your proof of ownership transfer. Like a baton in a relay, it marks a crucial handover point in your goods' journey. Don't get overwhelmed - electronic ('telex') releases have simplified this process significantly. Just imagine sending a secure, digital 'baton' instead of relying on gruelling paperwork! For those flying their goods out, the Air Waybill (AWB) serves a similar purpose. Investing in a seamless electronic release can save your business time and reduce risk of loss or damage. Remember, attention to detail in these critical documents can smooth your goods' passage and accelerate their arrival.

Packing List

Facing a customs process between Malaysia and France might seem daunting, but if you're armed with the correct documentation, it's a smooth sail. One crucial component is the Packing List. It's the shipper's responsibility to provide this detail-rich document, outlining the type, quantity, and weight of the goods amongst other pertinent details. Its accuracy directly influences the ease of your customs process, whether your business opts for sea or air freight. Imagine this; you're exporting luxury watches from Malaysia to a boutique in Paris. A single oversight in your packing list could confuse French customs, causing a mix-up between high-end models and standard editions. This could result in shipment delays and potentially costly errors. Crafting your packing list with care protects your goods, your timelines, and your bottom line.

Commercial Invoice

Navigating the sea of international logistics between Malaysia and France can be tricky. The keystone to a smooth customs clearance is your Commercial Invoice. It's not just a bill, but a passport for your goods. It needs to include essentials like product description, currency, HS Code, and destination, among other details. Here's a tip: Ensure your Commercial Invoice mirrors your Packing List to avoid shipment delays. Misalignments can raise red flags for customs officers, costing you time and money. For instance, if you're shipping cell phone parts, both documents should reflect the exact quantities, descriptions, and values. Adequately aligned and detailed documents will streamline your shipping process, making your transit from Kuala Lumpur to Paris feel (almost) as enjoyable as a sip of fine French wine.

Certificate of Origin

Our Certificate of Origin is your passport for products travelling from Malaysia to France. Acting as an official declaration, this document verifies the goods' country of manufacture, a crucial fact that sometimes translates into preferential customs duty rates. If your goods are produced in Malaysia, showcasing this via the certificate might just save you money! Consider business Joe's Furniture - when they exported their Malaysian-made sofas to France and produced the Certificate of Origin, they benefited from lower tariffs, boosting their profits! So, always remember to highlight your production source accurately on your Certificate. It's not just a paper; it's a strategic tool for smart shipping!

Certificate of Conformity (CE standard)

As you ship goods from Malaysia to France, the Certificate of Conformity to CE standards is a crucial ticket to entry. CE marking indicates your product meets all the health, safety, and environmental regulations in the European Economic Area. While similar to quality assurance, the CE standard is more comprehensive, covering broader areas of concern. It's akin to the US standards under FCC or UL, yet deviates significantly as it's legally required for certain product categories marketed in Europe. Therefore, before dispatching, ensure your items comply with CE standards, bypassing potential customs roadblocks. For products like toys or electronics, investing in sanctioning conformity certificates can significantly future-proof potential custom issues and delays. Remember, remaining compliant helps avoid costly detours, preserving your bottom line.