Taxed : Part 3, the Conclusion

Yesterday I send to FEDEX , my version of the HS code classification. Today I found out that Customs has rejected my classifications. As it now stands (final decision, no appeal), I owe Malaysian custom RM 784 in import duties and sales tax. FYI the value of good ex USA is RM 2600 and the shipping costs was RM 320. The duty and tax amounts to 30% of the value of goods.

I instructed FEDEX to clear the goods through customs. I really have no choice really. What pisses me off is in 1999, I bought some running gear back in 1999 but was not tax then and for the stuff I bought now, I have to pay taxes.

As for the my future purchases from the Internet/overseas which are potentially taxeable, I have to use alternative methods to avoid the import duty and sales tax. For those who are planning to buy things overseas and bring them in by ship or air and the duties & taxes exceed RM 500, this is how it should be done:

Method One

1. Ship it to Singapore which has ZERO import duties. Most companies allow the purchaser a different billing (credit card) and shipping address. Use your friends address in Singapore.
   
   
2. Goods delivered to friend. Friend informs you.
   
   
3. Take a bus to Singapore (cheapest bus ticket is RM 30) - 5 hrs journey. Bring an almost empty suitcase(s) or bag(s) preferably only one (1) large suitcase/bag.
   
   
4. Pick up goods from friend. Belanja him or her for saving you lots of $$$$.
   
   
5. Remove all price labels, packaging and throw away the price list, invoice etc.
   
   
6. Take a bus back to Malaysia. Do this during peak hours (6 to 8 pm) to cross the Causeway to minimise chances of customs checking the bag.

Method Two
Malaysian customs regulations allow RM 500 to be brought in free of import duty by an air courier company like FEDEX, US Post etc via recognised international airports including KLIA. But there is a catch here (there is always one!) to watch out, the RM 500 is assessed on C.I.F. (Cargo Insurance Freight). This means the shipping cost and insurance fee are included in the RM 500. The CIF basis practically limits how much you can buy from overseas without being exposed to the import duties.