Malaysia Import Duty and SST Calculator with Cargo Sum Insured Worksheet

USD 100,000 CIF Port Klang. Customs sees USD 100,000. Your cargo policy should respond to USD 110,000. The 10 percent uplift is your buyer's margin and contingencies, not customs duty or SST recovery.

Most Malaysian importers compute customs value, duty, and Sales Tax with their customs agent, and compute the cargo insurance sum insured separately. The two should sit on one worksheet so the cargo policy is sized to recover the customs value plus the buyer's expected uplift. This five-page calculator walks the four numbers in order, with an Incoterm-to-sum-insured mapping table and a Port Klang worked example.

What you get inside

The four-number framework, an Incoterm-to-sum-insured mapping, a fillable worksheet, and a worked example with a decision card.

• The four-number framework: customs transaction value (Customs Act 1967), import duty (HS code per the Royal Malaysian Customs JKDM tariff), Sales Tax under the Sales Tax Act 2018, and cargo insurance sum insured (Incoterms 2020 Article A.5).
• An Incoterm-to-sum-insured mapping table covering EXW, FCA, FOB, CFR, CIF, CIP, DAP, DPU, and DDP.
• A fillable worksheet capturing importer status, top three HS codes, monthly import volume, current sum insured methodology, and any customs valuation issues.
• A worked example for a USD 100,000 CIF Port Klang shipment with the cargo insurance sum insured at USD 110,000.
• A decision card mapping three positions (methodology aligned, sum insured below customs value, recurring valuation queries) to a next step.

How Incoterms map to sum insured methodology

The Incoterm sets who arranges insurance and the methodology applied; the table walks the most common terms.

Who this is for

Built for Malaysian importers, traders, distributors, and finance teams who buy from overseas suppliers on CIF, CIP, or other Incoterms and want to confirm that the cargo policy is sized against customs valuation, not against the invoice in isolation. The calculator assumes commercial maturity and a working familiarity with HS codes, customs declarations, and the role of the customs agent.

What this calculator references

All cargo cover references are subject to policy terms and conditions, and customs duty and SST rates are governed by Royal Malaysian Customs (JKDM) and the relevant Acts. The calculator draws on the Customs Act 1967 (transaction value method under the Customs Rules of Valuation), the Sales Tax Act 2018, the JKDM tariff schedule (HS-code-specific rates), Incoterms 2020 published by the International Chamber of Commerce (Article A.5 sum insured methodology), and Institute Cargo Clauses (A), (B), and (C) 2009.

Frequently asked questions

How is customs transaction value calculated under the Customs Act 1967?

Customs transaction value is the basis for customs valuation under the Customs Act 1967, with adjustments per the Customs Rules of Valuation. Where the import is on CIF, the transaction value typically includes freight and insurance; where the import is on FOB or similar, the customs value is built up from invoice plus freight plus insurance.

What is the SST rate on imports of taxable goods?

Sales Tax under the Sales Tax Act 2018 is determined by HS code and exemption status. Rates are governed by Royal Malaysian Customs (JKDM); consult the current tariff for active values for your specific HS codes.

Why is the cargo insurance sum insured set at 110 percent of CIF?

Incoterms 2020 Article A.5 for CIF and CIP requires a sum insured of at least 110 percent of the CIF or CIP value, in the contract currency. The 10 percent uplift covers the buyer's expected profit margin, freight not yet paid where applicable, and contingencies on the consignment.

Does cargo insurance recover customs duty or SST?

No. Customs duty and SST are payable to JKDM and are not recovered through the cargo policy. The cargo policy responds to loss of or damage to the cargo, subject to ICC level and policy terms and conditions; duty and SST recovery, if any, runs through the customs framework.

Download the calculator, walk the four numbers against your three largest HS codes, and align the sum insured methodology with your customs agent before your next placement.