2nd Circular: New Customs Harmonised System (HS) Codes 2017: Change from 9-digit to 10-digit

Head Office, KL

Reference is made to CD/03/2017. Effective April 1, 2017, the Customs Duty Order (PDK) 2012 will be abolished and the Customs Duty Order (PDK) 2017 will be adopted. The Customs Department is expected to publish the correlation table (guide for transposition from PDK 2012 to PDK 2017) at their official website: http://www.customs.gov.my/ms by March 24, 2017.

Following this ALL Customs Regulations and Orders including for Excise Duties, Goods and Services Tax (Zero Rated Supply), Customs (Anti-Dumping), Customs (Prohibition of Imports) and Customs (Prohibition of Export) and Strategic Trade Act will utilise the PDK 2017. This will mean that all declaration for Customs Forms - K1, K2, K3, K8, K9, import and export permits and Strategic Trade Act permits will utilise the PDK 2017. However for the Free Trade Agreement (FTA) declarations, the following tariff codes are applied:

No	Free Trade Agreement	Applicable Tariff Code	Special Code in SMK
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 (MIFTA)	PDK 2007 (9 digits)	C
14	Malaysia – Chile (MCFTA)	PDK 2007 (9 digits)	D

During the transition period from PDK 2012 to PDK 2017, the following is applicable:

All declarations will be suspended for 2 hours from 10:00 pm to 12:00 am on March 31, 2017. All Custom forms that are registered in the system during this period, including the receipt of payment of duty or tax and release will not be processed until 12:00 am on March 31, 2017;
For declarations made by agents or shippers before April 1, 2017 and approved by Customs after April 1, 2017, the duty or tax will be estimated based on PDK 2012;
Import and export permits, Strategic Trade Act permits, duty or tax exemptions and Customs assessment issued before April 1, 2017 will still be in force until its expiration date;
Certificates of Origin (COO) issued before April 1, 2017 by the country of origin with the old HS codes will still be accepted and allowed to be incorporated in the K1 and K9 declaration (importation);
The Cost Analysis for FTAs approved by MITI will automatically be transposed by Dagang Net from PDK 2012 to PDK 2017. Companies with Cost Analysis that are not automatically transposed in the system are required to contact Dagang Net for a manual transposition at their Careline at Tel: 1300133133 or email:[email protected]; and
Importers who import GST zero-rated goods will need to use the new Relief Code (Relief Order Code) ‘P03’ in the SMK System. The impacted Customs declarations are K1, K8 and K9. This is only applicable for imported goods that fall under the First Schedule to the Goods and Services Tax (Zero Rated Supplies) Order 2014 [PU (A) 272/2014].

To assist members with the implementation of the new HS Codes 2017, FMM in collaboration with the Royal Malaysian Customs Department and the Ministry of International Trade and Industry will be organising a Briefing on Implementation of New Customs Harmonised System (HS) Codes 2017 on April 6, 2017 (Thursday) from 8.30 am to 2.00 pm at The Royale Chulan Damansara Hotel. The seminar is HRDF Claimable under the SBL Scheme. Registration details of the seminar are attached for your information.

For enquiries, please contact Ms Maygelah Siva of the FMM Secretariat (Tel: 03-62867320 or Fax: 03-62741266/7288 or E-mail: [email protected]).