Importing China Products into Malaysia: A Seller's Compliance Guide

To sell Chinese products in Malaysia, the compliance logic is the same as for other countries—"the product category decides the competent authority"—but Chinese goods have one key advantage: China is a party to the ASEAN-China Free Trade Agreement (ACFTA). As long as you have a Form E preferential certificate of origin and the product meets the 40% Regional Value Content (RVC) rule of origin, you can enjoy preferential import tariffs—this is where Chinese goods differ in cost from Taiwanese and Korean goods. All other compliance requirements (food under FSQD, cosmetics and health supplements under NPRA, electrical goods under ST+SIRIM, halal under JAKIM, and clearance and SST through RMCD) are treated the same.

China products to Malaysia: competent authority reference

China is one of Malaysia's largest sources of imports, spanning an extremely wide range of categories; confirm the HS Code and competent authority first, then review the overall market compliance roadmap.

Tariffs and taxes: make good use of Form E

ACFTA gives Chinese goods that meet the rules of origin preferential import tariffs. Key points:

• Form E: a preferential certificate of origin issued in China, valid for one year from the date of issue; it must meet rules of origin such as RVC 40% or a change in tariff heading.
• RVC 40%: Malaysia grants preferential treatment to goods originating in China that meet 40% Regional Value Content.
• Sales Tax (SST): a preferential tariff does not mean tax-free—imports still incur 10% (some 5% or exempt) sales tax, with the tax base being "customs value + duty + excise duty."

Small cross-border e-commerce parcels are equally regulated: from 2024, low-value goods sold online at RM500 or below per item are subject to 10% sales tax, and sellers with annual LVG sales exceeding RM500,000 must register with RMCD's MyLVG. For documents and process, see the customs clearance process and document overview.

Import vs. local: compliance responsibility sits with the importer

When Chinese products are listed as imports, the compliance obligation falls on the Malaysian local importer:

• Labelling: statutory labelling must be in Malay or English, adding the country of origin (Made in China) and local importer's name and address; Chinese-only labels must be over-labelled with a compliant version.
• Local holder: the holder of a cosmetic notification or a health-supplement MAL registration must be a Malaysian-registered company.
• Extra care with halal: JAKIM only recognises halal certificates issued by its recognised Foreign Halal Certification Bodies (FHCB); recognition has a two-year validity and can be revoked (in recent years, some Chinese bodies have been de-listed, causing the related products to be barred), so always verify the latest recognition list before use.

Market-entry steps

1. Classify: fix the HS Code, check the competent authority and whether an Approved Permit (AP) is required.
2. Certify + prepare Form E: obtain the category certificate and, in parallel, request Form E from the Chinese supplier to secure the preferential tariff.
3. Relabel: produce a Malay / English compliant label, adding the country of origin and importer's name and address.
4. Clear and list: declare and pay tax, and have regulated electrical goods undergo SIRIM on-arrival testing.

Common mistakes

• Having Form E but mistakenly assuming SST is also waived—tariff preference and sales tax are two separate things.
• Form E details that do not match the customs declaration and invoice, causing the preference to be rejected.
• Reusing China's domestic halal mark without confirming whether the issuing body is JAKIM-recognised (or has been de-listed).
• Shipping electrical goods without obtaining ST's CoA and without SIRIM on-arrival testing.

Pre-launch self-check checklist

• [ ] Confirmed the category, competent authority and HS Code
• [ ] Assessed whether Form E can be used to secure ACFTA preferential tariffs
• [ ] Completed the category certificate and local holder
• [ ] Label is in Malay / English, with country of origin and importer's name and address
• [ ] The halal certificate's issuing body is on JAKIM's current recognition list
• [ ] Prepared customs documents and confirmed SST / LVG tax

Frequently asked questions (FAQ)

Q: Can Chinese goods be imported into Malaysia duty-free? Not necessarily duty-free, but goods that meet the ACFTA rules of origin (RVC 40%) and hold a valid Form E can enjoy preferential import tariffs; sales tax (SST) still applies.

Q: How long is Form E valid? The preferential certificate of origin is valid for one year from the date of issue and must match the customs documents to be accepted.

Q: Can Chinese halal certification be used in Malaysia? Only certificates issued by a JAKIM-recognised Foreign Halal Certification Body are accepted, and recognition can be revoked, so always check the latest list before importing.

Q: Do Chinese cosmetics need to be re-certified? Yes. They must be notified to NPRA under CDCR 1984, with a local company acting as the notification holder.

Conclusion

The biggest difference for Chinese products entering Malaysia is that Form E can secure ACFTA preferential tariffs; but sales tax, category certificates, a local holder and halal-recognition checks—none can be skipped. Work out both the benefits and the obligations, and cost and risk become controllable.

Want to confirm whether your China product label is compliant? Run a free label check now.

This article is compiled from official sources for reference only; actual compliance is subject to the latest official texts and reviews of the competent authorities.