UK exports to Malaysia hit £3.4 billion over the past year, and it’s no surprise as this market is full of opportunities for businesses ready to expand. For UK companies, shipping from UK to Malaysia is a chance to tap into a growing economy – but only if you’re prepared to do it right.
Getting your products to Malaysia isn’t just a matter of packing and shipping them off. There’s paperwork to deal with, customs regulations to follow, and cargo shipping methods to choose from. If you’re not careful, you could face delays or unexpected costs.
Malaysia’s Market Overview
Malaysia’s economy is one of the fastest-growing in Southeast Asia, with a young and growing population of over 30 million people. An increasingly affluent middle class is driving demand for high-quality imports, and British brands have a strong reputation for reliability and prestige. Since 2020, UK exports to Malaysia have been increasing, with everything from generators and chemicals to cars and electrical goods making their way into the market.
The Malaysian government has also made things easier by encouraging more foreign trade and investment, so it’s a good time for businesses to consider expanding into Malaysian markets. Plus, with its strategic location and developed infrastructure, Malaysia acts as a gateway to other Association of Southeast Asian Nations (ASEAN) markets, making it an even more attractive option for UK companies.
International Trade Agreements
Trade agreements help simplify exporting from the UK to Malaysia and make it more affordable. Although there isn’t a specific UK-Malaysia free trade agreement, both countries are part of a wider network of trade deals. The UK, for example, has agreements through its membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes Malaysia.
These agreements can offer reduced tariffs, making your products more competitive in the Malaysian market. For UK exporters, this can be an advantage, especially when you’re competing on price. It’s worth looking into how these agreements apply to the specific goods you’re shipping to see if you can benefit from lower costs. Keeping an eye on trade policies and any changes in tariffs is important, as it can affect the bottom line of your export strategy.
Preparing for Export to Malaysia from the UK
What documents are required to export to Malaysia?
Getting the paperwork right is one of the most critical parts of exporting to Malaysia from the UK. Missing or incomplete documents can cause delays or even stop your shipment from entering the country altogether. Here’s a quick breakdown of the documents you’ll need:
- Commercial Invoice: This document details the goods you’re exporting, their value and the terms of sale. It’s used for customs purposes and is necessary for calculating duties and taxes in Malaysia.
- Packing List: This document provides details about the contents of each package, including dimensions, weight, and quantity. It helps both the shipping company and customs officials understand what’s being shipped and makes the clearance process smoother.
- Bill of Lading: This is a receipt for your shipment and a contract between the shipper and the carrier. It outlines the terms of delivery and acts as proof that the goods have been shipped.
- Certificate of Origin: Some goods may require a CO to prove where they were manufactured. This can be important for determining if your products are eligible for reduced tariffs under certain trade agreements.
- Export Declaration: In the UK, you’ll need to file an export declaration with HMRC through the Customs Declaration Service. This makes certain that your shipment complies with UK export laws.
- Any Special Permits: Depending on the type of goods you’re exporting, you might need additional permits or licenses. For example, if you’re exporting chemicals or machinery, you may need to check if there are any specific regulatory requirements for these products.
UK Customs and Export Procedures
Before your goods can head from the UK to Malaysia, they need to go through a few customs and export steps. You’ll need to submit an export declaration to HMRC, and get an EORI number (if you don’t have one already), which helps track your goods through customs.
Take time to check that your products meet all the regulations in the UK and Malaysia. This might mean getting licenses or special permits, especially for things like chemicals or electronics. Depending on what you’re shipping, there may also be export duties or VAT to consider.
Malaysian Import Procedures and Tariffs
Once your goods arrive in Malaysia, they’ll need to pass through Malaysian customs before reaching their final destination. This involves a few key steps and some costs to keep in mind.
Your shipment will need customs clearance, which means all the documents you prepared on the UK side (like the Commercial Invoice, Packing List, and Certificate of Origin) will need to be in order. Malaysian customs will use these documents to assess any import duties and taxes. The amount you’ll pay depends on the type of goods you’re importing, with some products, like cars or electrical goods, having higher tariffs than others.
In addition to import duties, there may be a Goods and Services Tax (GST) or other charges depending on the nature of the goods. Once customs are satisfied that your shipment complies with their regulations and all taxes and duties are paid, they will release your goods.
Trade Laws And Regulations
Malaysia has specific rules about what you can and can’t bring into the country, and if you don’t follow them, you could face delays, fines, or have your shipment refused altogether. Some items like chemicals, pharmaceuticals, or certain machinery might need extra permits or paperwork before they’re allowed in.
On the UK side, there are strict export laws that govern certain products, especially when it comes to sensitive items like advanced technology, software, or anything related to defence or military use. These kinds of goods might require special licenses or approval before you can export them. So, if you’re shipping anything that falls into these categories, it’s important to check if export controls apply to avoid legal issues or fines.
Packaging Requirements for an Exporter
When exporting goods to Malaysia, how you pack your items impacts the cost and how easily your shipment moves through customs. Shipping costs are based on either the weight or the volume of your goods, so bulky or oversized packaging could increase your fees, even if your goods aren’t that heavy. To keep costs down, pack your items efficiently, making sure the packaging isn’t bigger than necessary while still protecting your products.
Durable packaging materials such as wooden crates are essential for heavier items like machinery. However, bear in mind that if your packaging makes it hard for customs officers to inspect the goods, you might run into delays.
In Malaysia, there are specific rules about packaging materials. For example, wooden crates need to be treated and certified to meet international standards like ISPM 15, which prevents pests from being transported with your goods. This is especially important for bulky items that need wooden support.
Labelling and Documentation
Proper labels help customs officers verify your shipment quickly, and the documentation ensures everything complies with Malaysian regulations.
Start by making sure all labels are clear, easy to read, and properly attached to your goods. If your products require special handling, be sure to include labels like “Fragile” or “This Side Up.” Labels should also align with the product description and codes listed on your export documents.
Labels must be written in either Bahasa Malaysia or English. You can also include translations in other languages if necessary, but having the label in one of these two languages is mandatory. This means that customs and local authorities can easily verify the contents and details of the shipment.
If you’re exporting perishable items like food, pharmaceuticals, or other regulated items, it’s especially important that the labels meet these language requirements to avoid delays or penalties at customs.
Export Process from the UK to Malaysia
1. Choose a Cost-Effective Shipping Method
There are two main shipping options to get your cargo from the UK to Malaysia: air freight and sea freight.
Air freight is faster but generally more expensive, making it a good option for high-value or time-sensitive goods.
Sea freight is more cost-effective for larger, heavier shipments that are packed into shipping containers and that aren’t as urgent. If your products are too large or oddly shaped for a shipping container, they are called Out of Gauge Cargo and can be shipped by specialist sea freight.
2. Pick Your Freight Forwarder
A freight forwarder like us at SLG Logistics helps coordinate the entire export process, from booking space on a ship or plane to handling customs and ensuring your shipment reaches its final destination. Working with an experienced freight forwarder is especially important if you’re new to exporting, as it simplifies the process and reduces the risk of errors.
3. Prepare Your Shipment
Once you’ve selected a shipping method and a freight forwarder, the next step is preparing your goods for shipment. This includes proper packaging, accurate labelling, and getting all necessary documentation in order, including the waybill and any required permits.
4. Export Clearance
Your goods must be cleared by UK customs before they leave the country. Getting export clearance for your goods through UK customs is usually a quick process, especially if all your documents are in order. Usually, electronic export declarations are processed within a few hours. However, if your goods require additional checks, like controlled items or anything needing a special permit, it might take a bit longer, sometimes up to a few days.
5. Transportation of Shipment
Once cleared, your goods are transported to the shipping port or airport. From there, they’ll be loaded onto a ship or plane and begin their journey to Malaysia. Depending on your shipping method, this part of the process can take anywhere from a few days (for air freight) to several weeks (for sea freight).
6. Import Clearance in Malaysia
When your shipment arrives at Port Klang or any other port in Malaysia, it will be processed by Malaysian customs. Preparing all documentation will help speed up the clearance process and be ready to pay any import duties or taxes at this stage.
7. Delivery to Final Destination
After clearing Malaysian customs, the goods will be delivered to their final destination (i.e. a business, warehouse, or another facility). A reliable freight forwarder will manage this door-to-door service, arranging a local last-mile delivery service to make sure your shipment arrives on time and in good condition.
Shipping Goods to Malaysia? Export with SLG Logistics
Organising the export process can be overwhelming, especially if you’re new to shipping internationally and you’re trying to handle multiple steps like customs clearance, documentation, and shipping logistics.
We have years of experience helping businesses move their goods from the UK to Malaysia, making the entire process more straightforward. From choosing the most efficient shipping method to making sure your documentation is complete, we’ll take care of every aspect of the export journey. We’ll guide you through customs and track your shipment until it reaches its destination safely.
If you’re looking to break into the Malaysian market, SLG Logistics has got you covered. Get a quote today and let us make your export process easier and hassle-free.