KINIBIZ Malaysia’s 30 percent import duty on sensitive automotive products such as completely built-up (CBU) vehicles will be eliminated within 12 years, while import duties for other automotive products will be eliminated in between five and 10 years under the Trans-Pacific Partnership Agreement (TPPA).

CBU refers to vehicles that are wholly put together in another country.

International Trade and Industry Ministry also hopes that the removal of import duties on auto parts manufactured in Malaysia may encourage auto companies from non-TPPA nations to establish a presence Malaysia.

Import duties of rice will also need to be removed within 10 years of entry into force.

However, Malaysia has reserved the right to maintain its current importation and distribution system.

Duties for sensitive iron and steel products will be removed within 10 years, while other such products will see import duties removed in between five and seven years.

Malaysia will eliminate its import duties on sensitive products such as alcohol beverages and tobacco within 15 years of the agreement coming into force.

Nonetheless, the government still retains the right to maintain or adjust excise duties for these products.

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