BASIC
LOGISTICS
GUIDE
Associate Company:
INCOTERMS
• Incoterms are a set of international rules to interpret
commonly used trade terms in foreign trade
INCOTERMS
Commonly used incoterms for exports:
FOB CIF CFR
ExWorks DDU DDP
DAP
IMPORTANT INFORMATION FOR
YOUR FREIGHT FORWARDER
1. Pick up location & destination address
2. Dimension and weight of cargo
3. Commodity of cargo
4. Shipping terms (FOB / CIF / door to door / door to port)
5. Mode of transport
6. Packing of cargo
7. A photo of the cargo
8. Brochure of cargo
9. Value of cargo
PERMITS
• Permits are required for the import and export of
certain goods in order to clear customs
• Example of goods that require export permits/licenses:
Poultry
Any animal or bird, alive or dead
Sugar and rice
Military clothing and equipment
Arms and ammunition
Coral, alive or dead
Vegetables, fresh, frozen or chilled in excess 3 kg
Palm kernels and palm seeds
Live prawns/shrimps/fish
INTRODUCTION TO TARIFF CODES
How to identify the tariff code of a product?
• http://tariff.customs.gov.my/
• The Malaysian Trade Classification & Customs Duties
Order (amendments up to April 2017)
INTRODUCTION TO TARIFF CODES
Section Title Chapters
1 Live Animals; Animal Products 1-5
2 Vegetable Products 6-13
3 Animal and Vegetable Fats and Oils and Their Cleavage 15
Products; Prepared Edible Fats; Animal or Vegetable
Waxes
4 Prepared Foodstuffs; Beverages, Spirits and Vinegar; 16-24
Tobacco and Manufactured Tobacco Substitutes
5 Mineral Products 25-27
6 Products of the Chemical or Allied Industries 28-38
7 Plastics and Articles Thereof; Rubber and Articles Thereof 39-40
8 Raw Hides and Skins, Leathers, Furskins and Articles 41-43
Thereof; Saddlery and Harness; Travel Goods, Handbags
and Similar Containers; Articles of Animal Gut (other than
silk-worm gut)
INTRODUCTION TO TARIFF CODES
Section Title Chapters
8 Wood and Articles of Wood; Wood Charcoal; Cork and 44-46
Articles of Cork; Manufacturers of Straw, of Esparto or of
other Plaiting Materials; Basketware and Wickerwork
9 Pulp of Wood or of other Fibrous Cellulosic Material; 47-49
Recovered (waste and scrap) Paper or Paperboard, Paper
and Paperboard and Articles Thereof
10 Textiles and Textile Articles 50-63
11 Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking- 64-67
sticks, Seat-sticks, Whips, Riding-crops and Parts Thereof;
Prepared Feathers and Articles Made Therewith; Artificial
Flowers; Articles of Human Hair
12 Articles of Stone, Plaster, Cement, Asbestos, Mica or 68-70
Similar Materials; Ceramic Products; Glass and Glassware
13 Natural or Cultured Pearls, Precious or Semi-precious 71
Stones, Precious Metals, Metals Clad with Precious
Metal, and Articles Thereof, Imitation Jewellery; Coin
INTRODUCTION TO TARIFF CODES
Section Title Chapters
14 Base Metals and Articles of Base Metals 72-83
15 Machinery and Mechanical Appliances; Electrical 84-85
Equipment; Parts Thereof; Sound Recorder and
Reproducers, Television Image and Sound Recorders and
Reproducers, and Parts and Accessories of Such Articles
16 Vehicles, Aircraft, Vessels and Associated Transport 86-89
Equipment
17 Optical, Photographic, Cinematographic, Measuring, 90-92
Checking, Precision, Medical or Surgical Instruments and
Apparatus; Clocks and Watches; Musical Instruments;
Parts and Accessories Thereof
18 Arms and Ammunition; Parts and Accessories Thereof 93
19 Miscellaneous Manufactured Articles 94
SIZE - WEIGHT & DIMENSION
Measuring length x width x height
SIZE - WEIGHT & DIMENSION
The three most
common container
dimensions
PACKING
Fumigated Pallet
Why is packing important?
Integrity and security of goods
Requirement by customers
Requirement of importing countries
Eg: Europe pallets, wood
fumigation
PACKING
TYPES OF WOODEN PACKING
PACKING
Lashing & Choking
EXPORT FLOWCHART
Origin Destination
PICK UP DELIVER
Shipper’s office / Consignee’s office /
warehouse warehouse
CUSTOMS CUSTOMS
CLEARANCE CLEARANCE
AGENT’S
- Documentation - Documentation
WAREHOUSE
- Declaration - Declaration
FREIGHT - Unstuffing
FORWARDER’S - Unpackaing
WAREHOUSE - Repacking /
labelling
- Distribution
IMPORTANT DOCUMENTS
2. Packing List
IMPORTANT DOCUMENTS
3. Commercial Invoice
IMPORTANT DOCUMENTS
1. Bill of Lading
/ Airway Bill
IMPORTANT DOCUMENTS
4. Certificate of Origin
(Form D)
FREE TRADE AGREEMENT (FTA)
• Malaysia has 7 bilateral FTAs and 6 regional FTAs
• Exporters and importers will benefit from the FTAs by
saving import duty
1. Malaysia-Japan Economic Partnership Agreement 1. ASEAN-China Free Trade Agreement (ACFTA)
(MJEPA)
2. ASEAN-Korea Free Trade Agreement (AKFTA)
2. Malaysia-Pakistan Closer Economic Partnership
Agreement (MPCEPA) 3. ASEAN-Japan Comprehensive Economic
Partnership (AJCEP)
3. Malaysia-New Zealand Free Trade Agreement
(MNZFTA) 4. ASEAN-Australia-New Zealand Free Trade
Agreement (AANZFTA)
4. Malaysia-India Comprehensive Economic
Cooperation Agreement (MICECA) 5. ASEAN-India Free Trade Agreement (AIFTA)
5. Malaysia-Chile Free Trade Agreement (MCFTA) 6. ASEAN Trade in Goods Agreement (ATIGA)
6. Malaysia-Australia Free Trade Agreement
(MAFTA)
7. Malaysia-Turkey Free Trade Agreement (MTFTA)
