On 18 March 2022, the Regional Comprehensive Economic Partnership (RCEP) entered into force for Malaysia. RCEP is the largest trade bloc in the world and Malaysia now officially join the other RCEP member countries where it became effective; Australia, Brunei, Cambodia, China, Japan, South Korea, Laos, New Zealand, Singapore, Thailand, and Vietnam.
The Malaysian ministry of finance published an order that includes details of the requirements that need to be met in order to qualify for the incentives, including rules of origin, product specific rules, and operational certification procedures. The import duty rates under the RCEP have also been shared in the tariff reduction schedule as well as a sample of the Certificate of Origin (Form RCEP).
Poldertrade encourage businesses to evaluate the impact of the changes on their imports and exports and capture potential benefits from this agreement. However, traders should be aware of the qualification requirements of the duty privileges and prepare proper supporting documentation for FTA usage.
If you have any questions regarding this topic, please feel free to contact us.