It is an amazing idea to import from China, so here is a guide for you.
Malaysia is a trading nation in Southeast Asia, with imports being a significant part of its economy. They have been known for importing machinery, and equipment, and in 2021, the import market was valued at 69 billion ringette. Whereas China is one of the world’s largest manufacturers and exporters of machinery.
China is advanced in terms of manufacturing and is relatively cheaper than other manufacturers. The size of their export industry is larger than any other. So. You have many suppliers to choose from. But how do you import machinery from China to Malaysia? Here is why we are here.
Well, when you begin to begin the journey of trading with China from Malaysia, it could be complex. You have to learn about the importing process, costs, and other important factors attached to it. However, Malaysia’s customs are more flexible than neighboring ASEAN countries.
Why Do You Need to Import Machinery from China?
As you know China is a top market, other reasons also make up why you need to trade with China. The quality of the products is greater than others, and also are lower in prices. The people working in China are proficient yet it can vary on the suppliers.
Having said that, you have to find suppliers for the process to proceed. Several factors have to be considered before choosing a supplier and other matters. Do you know them? Well, you should know.
Common Types of Machines Imported from China and Manufactured
Here is an extracted list of some of the most common and required machines,
- Agricultural machines
- Food production machines
- Welding machines
- Sealing machines
- Weaving machines
- SMT machines
- Knitting machines
- Lathes
- Milling machines
- Mixers
- Grinders
- CNC machines
- Wheel loader
These are only some sections of machinery available in China and are therefore highly demanded in Malaysia as well as in other parts of the world. So, what you need now is the right suppliers.
Tips for Importing Machinery from Malaysia to China
Different tariffs and taxes are associated with importing goods from China to Malaysia. It is the tax that is payable equivalent to the present value of the products.
Malaysia uses the K2 form which is the most important part of the documents in export. It has to be completed in English and submitted to the customs office.
General Documents Required When Bringing Machinery to Malaysia
When trade takes place between China and Malaysia here are some important documents when bringing machinery from China,
- Certificate of origin i.e.; China
- Custom and export declaration form
- Packing list
- Commercial invoice
- Letter of credit (opt)
- Proof of payment
How to Get an Import Permit in Malaysia?
First of all, you need to apply to the Ministry of International Trade and Industry (MITI). It can be applied online or by post. The process is slower and may take several weeks therefore it is important to apply the earliest.
Step-by-Step Process of Importing Machinery from China to Malaysia
Here is how you will import goods from China to Malaysia.
Find the Right Suppliers
Foremost, you have to begin with finding the right suppliers, they are the main character of your business. They play a direct role in influencing the entire model and journey of your business. Don’t only consider suppliers as a source, but they play a great role in the entire process. So, make sure they are reliable, verified, and meet your business requirements. Here are some places where you can find the right suppliers.
· eWorldTrade
One of the main markets of China, eWorldTrade is a pioneer in B2B trade. They are super sources and a great business partner when it comes to online eCommerce platforms. Import and export are what they mastered. You will find manufacturers, suppliers, retailers, and all necessary business entities.
· Made-in-China
Made-in-China is also a Chinese-centric B2B marketplace. Businesses from China can easily connect through the suppliers and make a verified trade deal. All the products and suppliers are verified by the authorities.
· Alibaba
Alibaba has entered the B2B market with a storm, they have set some new bars in the industry. It is listed among the most popular online platforms working indigenously. Any business from Malaysia that seeks to make a tremendous deal may work with Alibaba.
· EC Plaza
Adding another prestigious name to the list, EC Plaza can also be considered for importing machinery from China to Malaysia. They have largely contributed to the eCommerce business model, and continue to do so. They have an easy-to-trade system with other Ven fits for businesses.
Research Import Regulations
Have you read about the trade regulations of trading with China or about Malaysia? Each state has a designed system where they apply some regulations that are to be looked at before. These include tariffs, restrictions, permits, and specific documents for equipment.
Request Quotations and Samples
Always ask for a quotation before making any business deal for the machinery. You can also ask for samples before delivery to see if the supplier meets the requirements.
Negotiate Terms
Negotiate with businessmates mates, ask them about payment terms, business terms, and other details. Whenever you are trading with suppliers make sure to be on the same page. It is among the basics, to obtaining the basic documents and payment methods.
Arrange Shipping
Decide on the most suitable shipping method for transporting the machinery from China to Malaysia. Options include sea freight, air freight, or courier services. Obtain quotes from freight forwarders or shipping companies and arrange transportation accordingly.
Now, comes an important part where you have to choose the most suitable method of delivery. When you work with international eCommerce businesses you can choose among some defined delivery methods. They are defined as;
Air Freight
Air freight is one of the quickest ways to get goods from China to Malaysia, it is time for goods to reach you soon. It is now often used but is only ideal for lightweight or high-graded goods.
Sea Freight
For large and bulk products, sea freight is the most used form of delivery method for international trade. It may take several weeks for machinery to reach but is a cost-effective option. One of the fine qualities of sea freight is it allows large volumes at a fraction to be shipped.
Courier Services
An ideal option for small packages that could be easily moved and does not require much speculation.
Pay Duties and Taxes
Taxes are also another important part of the import business. You are supposed to pay any applicable duties, taxes, and import fees required by Malaysian customs authorities. Also, be aware of the applicable rates based on the value and classification of the machinery being imported.
Track Shipment
Be in contact with your suppliers and ask for up-to-date information. Be sure you know where is your package, and how far it is. You have to be keen when it comes to this. We know how you want your products to reach you soon.
On a Concluding Note
If you begin importing from Malaysia to China you need to pay great attention to detail and make sure you are obeying all the terms and conditions in trade. Understand what are Malaysia’s import regulations, permits, and licenses. So, be ready before you enter and make sure you have the documents.
Another important step is choosing the supplier, delivery method, and custom broker. Be prepared for any kind of hindrance and have always ways to tackle it. You need to have proper planning as an importer to enter into this arena. Because Malaysia contributes to the growth and development of industries in both countries while complying with all regulatory obligations. So, do not worry, and begin now.