Looking to purchase vehicles parts online from overseas stores? Watch out for import duties, taxes

Looking to purchase vehicles parts online from overseas stores? Watch out for import duties, taxes

In this modern day and age, it’s rather easy to purchase items online, be it locally or from stores located overseas. The latter does come with some risks, as it’s up to you to determine the trustworthiness of the store, and hope that your ordered item arrives in one piece.

Be that as it may, the numerous avenues to source items bodes well for vehicles owners who might find it hard to source certain parts for their car or motorcycle locally, but can only find them from markets outside the country.

This was exactly the predicament faced by Durrani Sharom, who writes for our sister site paultan.org/BM, and owns 2015 KTM Enduro 690. While the availability of spare parts for his motorcycle is catered for by the local KTM distributor in Malaysia, it’s a different story when it came to accessories.

The backstory on Durrani’s motorcycle is that it was fitted with an aftermarket air filter and exhaust system, with a tuned ECU to be compatible with these modifications. Over his three years of ownership, the carbon-fibre trim on the exhaust became damaged and need to be replaced. It was then that he decided to purchase an entirely new set made from stainless steel – the stock exhaust system was no longer suitable with the bike’s ECU mapping.

Looking to purchase vehicles parts online from overseas stores? Watch out for import duties, taxes

After scouring around Malaysia for a suitable aftermarket option, he found an Akrapovic unit that costs over RM7,000 just for the end pipe, which is well over his budget. As a result, he looked around online stores outside Malaysia for a more affordable option, and long story short, decided to purchase an Arrow set from an Italian website for 349.56 euros (around RM1,600).

The purchase was done on November 15, 2019, and on November 19, he received a tracing number stating that the item would be shipped via Poste Italianne. Set to arrive on December 2, the package never did, and was eventually stuck at Malaysia’s international shipping exchange hub.

Initially, Durrani assumed it was a rudimentary case of the item being inspected before being released, but after two weeks without any progress, he decided to head to the Pos Malaysia’s international hub at KLIA to see what’s what. As it turns out, the item did arrive, but before it could be collected, Durrani was directed by an officer to the Customs counter first.

Upon arrival, he was instructed to open the package and state what was inside, before being told he had to pay the import duty and tax for the item. Having anticipated this would happen, the only concern was how much it would add up to. After some assessment, the officer revealed that the import duty would be 25%, with the SST an additional 10%. This would be calculated based on the total price of the items, which when rounded up, was RM1,600.

Looking to purchase vehicles parts online from overseas stores? Watch out for import duties, taxes

On the whole, for the items to be released, Durrani paid RM400 for the import duty (25% times RM1,600) and RM200 for SST (10% times the total of RM1,600 plus the import duty). All in all, the total cost of the items – include duty and tax – was RM2,200, which was the same price listed on the website prior to the discounted price he got upon checkout (RM1,600). Even so, it’s still well within his budget, and the set was among the cheapest on the market.

While some of you are already familiar with such a scenario, we would like to inform those who are looking to purchase parts for overseas to also factor in local import duties and taxes to confirm the final price upon arrival. Don’t just purchase the item due to its attractive price only to have it be stuck in Customs because the import duties and taxes are just too expensive – if you don’t pay, you can’t collect your item.

Do your homework by checking the applicable import duties and taxes on the Customs website using the HS Code of the item you’re looking to purchase. Based on our observations, vehicle parts can vary between five and 40%, before the additional 10% SST. Best to judge for yourself if you’re willing to pay the sum before you pull the trigger.

This post was adapted from an article posted on our sister site paultan.org/BM.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Finally they are doing this. For years so many rich abang abangs buy parts for their Ferrari and Porsche for over the Internet. Then ask foreman in Malaysia to pasang.

    Government loses billions of ringgit per year. Time to curb all this nonsense.

    Like or Dislike: Thumb up 7 Thumb down 51
    • This doesn’t look like an exhaust pipe from a Ferrari nor from a Porsche dude. Heck it looks like it is for a KTM 690 Enduro which is far cheaper than any Ferrari or Porsche. You better curb your baseless accusations here.

      Like or Dislike: Thumb up 41 Thumb down 8
    • Angry Voters on Jan 03, 2020 at 5:15 pm

      We choose not to pay taxes to this bloody blood-sucking, money-sucking, uturning government. We will not pay taxes until we get a government that truly cares about us and not just our votes.

      Like or Dislike: Thumb up 36 Thumb down 11
    • Hafiz Hisham on Jan 03, 2020 at 5:22 pm

      Complain about gahmen losing billions RM per year and yet got billions RM to throw into unnecessary 3rd crony car projects and flying crony drone projects and wrecking havoc & destruction on the environment of an island and buying imported cars for themselves? Lol! What happen to yr priorities PH? The people dont matter anymore since its not GE season?

      Like or Dislike: Thumb up 29 Thumb down 3
  • No matter how much tax is imposed by our Customs, most rich guys just go to Port Klang, put RM1000 inside a red packet and pass it as duit kopi

    All settled.

    This is why it is important for the Government to clean the KDRM guys at the port. They are always asking for Red Packet to settle everything

    Who loses? The Government loses billion per year because the KDRM staff are heavy into duit kopi

    Like or Dislike: Thumb up 11 Thumb down 16
    • Jeremy on Jan 03, 2020 at 4:06 pm

      This is express delivery which meant air freight shipment, nothing to do with Port Klang. Port Klang is not an airport even though it has ‘port’ in the name. You better get some imported multivitamins to make you smarter.

      Like or Dislike: Thumb up 23 Thumb down 2
      • Sohai jeremy on Jan 03, 2020 at 9:08 pm

        Stupid JEREMY. Port klang even import MORE HEAVY DUTIES PRODUCT LIKE CAR. tau apa tu AP ? Who incharge port klang ? KASTAM OFFICER LA. sohai like u presume different from airport. Sohais everywhere

        Like or Dislike: Thumb up 2 Thumb down 4
        • English Teacher on Jan 06, 2020 at 2:06 pm

          You have some problems understanding English or difficulties to read the article? That is the problem with our UEC grads, very poor grasp of English but talk a lot.

          Like or Dislike: Thumb up 3 Thumb down 1
  • BOYRACER on Jan 03, 2020 at 1:41 pm

    Good info here..

    Like or Dislike: Thumb up 2 Thumb down 0
  • Abang2 Basikal Lajak on Jan 03, 2020 at 1:41 pm

    Our Customs are pretty uneducated. I always buy multivitamins but they tell me it is illegal substances and narcotics.

    Aiyooo……multivitamins from GNC la. How can this be illegal substances and Narcotics?

    I spent the whole day with Customs trying to convince them it is multivitamins

    Education oh education

    Like or Dislike: Thumb up 8 Thumb down 7
    • Jeremy on Jan 03, 2020 at 4:04 pm

      Don’t worry our useless PH Education Minister have just been sacked. Hopefully soon our entire Cabinet will be sacked as well. Then you will see Malaysia climb up the education ranks again.

      Like or Dislike: Thumb up 20 Thumb down 10
  • Frozen on Jan 03, 2020 at 1:51 pm

    This New Malaysia is intending to cekik us kaw kaw until we bleed dry of our hard earned money. Already are forcing many parents to buy expensive child seats when the same model is 3X cheaper overseas. They keep calling us to pay our dues and yet they do not hesitate to spend our tax money on Toyota Velfires and Honda Accords. This is the shittiest government we ever had.

    Like or Dislike: Thumb up 31 Thumb down 8
  • vivizurianti on Jan 03, 2020 at 4:17 pm

    I hear some buyers asked oversea sellers to “under-declare” their item (ori price is USD25. But declared on the postage as USD10 only). With such lower value, the import duty shall be lowered.

    Anyway, the harapan(less) govt should lower, or do away with the import duties. Open up the market. More sales, more choices, more competition, etc

    But in reality, The govt wants to cekik darah rakyat samor. The govt ain’t gonna be rich through taxing its rakyat wei.

    Last time with GST, even buying coffin for the dead oso slapped with plus 6%…..Adui!

    Like or Dislike: Thumb up 7 Thumb down 1
  • apamau on Jan 03, 2020 at 4:22 pm

    Hello all, this is not new, pls take note whatever you buy, not just car parts, it is subjected to tax, it was never changed since last time till now.
    we were for fashion, phone (sirim), parts, accessories and all sort of things. so this is not an isolated cases, check around and you found many since bn till ph.

    however, anything declared below the value of RM400, it won’t be tax. (generally). that’s why all the online shopping thing you buy fr taobao or other places may skip, either below the value or the seller know how to declare the value

    Like or Dislike: Thumb up 10 Thumb down 2
    • Calvin on Jan 03, 2020 at 5:37 pm

      C’mon lah. Isn’t Pakatan supposed to be different than BN? Isn’t transparency and openness was what they shouted during campaign? So why not open the market and remove these tax hindrances? Suddenly Pakatan not so open anymore after becoming gomen? What shit is this? This is not what I voted for!

      Like or Dislike: Thumb up 12 Thumb down 6
  • I was charged roughly 6% for import tax but not being charged for a sales tax. It still a motor bike part I bought online but not an accessories. May be the charge rate would be different for a different category of motor vehicle part. I think the ceiling rate would be 30%.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Haviny on Jan 03, 2020 at 9:01 pm

    Amazon now does shipping overseas and they take a duties deposit , whatever is extra they refund , whatever shortfall they absorb it

    Like or Dislike: Thumb up 1 Thumb down 1
  • Old news & common knowledge that auto parts are subject to duty taxes based on value + freight. Anything beyond RM500 can be taxed. Higher risk of duty by normal mail/Pos than international courier. My 2cts.

    Like or Dislike: Thumb up 1 Thumb down 0
  • ducati specialist on Jan 06, 2020 at 3:50 am

    well, to be honest. this is not new at all. want to share my experience.
    i was charged when i import parts from overseas buying such as from ebay.
    my 1st experience in 2015 was buying bulk Ducati parts: timing belts, map sensor :declare real value
    from Austria and when arrive at klia, i received a call from pos malaysia said that i have pending item from custom.
    the value was around rm2000+ have to pay 30% import duty + 6% gst.
    so lesson learned. every time i want to buy Ducati parts from ebay or other online store, i will personally message the seller and agreed to declare lower value at the label sticker. if the item below rm500 than you will not being taxed.
    there is one time, i bought Panigale 1199 rear rim. it is 17inch size and big box managed to get the value usd50 and label as broken parts. surprisingly i received the rim at my door step without being held in custom.
    2nd situation i bought used 999 R meter+fuel cap+key set, small box.value was rm1800 taxed 30%+6%gst as the seller did not want to declare lower value.
    other situation, September 2019 bought Ducati parts one way bearing, starter driven gear, streetfighter 1098 meter+keyset and other small heavy parts from Ducati UK, medium box declare 50 pound at the sticker. being held in custom and request invoice. and have to pay only the poslaju service fee rm40 because i showed them the original invoice also mentioned 50 pound. even though the actual price is 3000 pound.
    so, for my every next purchase I bought many ducati parts from outside and shipped to an address in singapore and no tax will be impose if the item below sgd400 and if more just 7% gst no matter what size the box/parcel are. in their custom site, engine parts also will not being tax. only 7% gst if the value above sgd400. so if anyone wants to buy an engine, shipped it to singapore first and to bring to here, pandai-pandailah…

    Like or Dislike: Thumb up 10 Thumb down 0
    • Hi, I want to ask if the parts bring in from Singapore, then there will be no tax impose to those parts??

      Like or Dislike: Thumb up 0 Thumb down 0
  • potato on Jan 06, 2020 at 11:53 am

    my best advise is always buy original parts from official SC. the price will be slightly higher but guarantees genuine & new and comes with warranty.

    buy from China, you never know parts may be incompatible.

    Like or Dislike: Thumb up 2 Thumb down 0
  • AHKIATKLLL on Jun 13, 2023 at 3:51 pm

    anyone know the HS code for shipping a repaired Turbocharger back from USA? is it 40% tax? God damn it, i only send there repair and send back.. used one somemore..

    Like or Dislike: Thumb up 0 Thumb down 0
 

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