Yes. Most shipments to the South Korea are subject to import duties and taxes.
The South Korea no longer applies a broad duty-free threshold. This means goods of any value may be assessed import duty, depending on the product type and its tariff classification (HTS code).
What you may be charged:
- Import duty based on the product’s HTS code
- Additional tariffs depending on the country of origin
- Excise tax for specific goods such as alcohol or tobacco
There is no VAT or federal sales tax on imports, but customs fees may still apply.
Yes. Most shipments from Malaysia to South Korea are subjected to import duties and taxes unless it's within the De Minimis threshold or recognized under the preferential treatment of ASEAN-Korea Free Trade Agreement (AKFTA).
Yes. Most shipments from Malaysia to South Korea are subjected to customs duty and VAT. The rate will depend on the shipment's value and the type of goods. However, if the value of the goods are within the De Minimis threshold or you're qualify for preferential treatment under the ASEAN-Korea Free Trade Agreement (AKFTA) duty could be eliminated or reduced.
About South Korea's De Minimis:
- The standard South Korea's De Minimis threshold for most imports is KRW 150,000 (approximately USD 110–115).
- Shipments valued at or below this amount are generally exempt from customs duty and 10% VAT for personal use or small consignments.
- Exceptions: Certain goods (e.g., alcohol, tobacco, perfumes, or restricted items) may not qualify for the exemption even below the threshold, and duties/taxes could still apply.
About ASEAN-Korea Free Trade Agreement (AKFTA):
- The AKFTA significantly reduces or eliminates customs duties for goods moving between Malaysia and South Korea.
- Duty-Free Potential: Most qualifying Malaysian exports (electronics, machinery, textiles, and processed foods) are eligible for 0% duty.
- Origin Requirement: To qualify, goods must be "originating," meaning they are either wholly produced in Malaysia or meet specific ASEAN value-added content rules.
- Mandatory Documentation: You must provide a Certificate of Origin (Form AK) issued by MITI. Without this physical proof, South Korean customs will apply the standard (higher) MFN duty rates.
- Current Status: Since the agreement is fully phased in, almost all "normal track" goods from Malaysia now benefit from the lowest possible preferential rates.