Why Your Package or Container Is Stuck in Customs?

Ever wondered, “Why is my package stuck in Customs? Why are my goods still being held by Customs?” There are a variety of reasons why shipments may face delays or become stuck in Malaysian Customs. These issues can be grouped into three main categories: Physical Inspection, Duties & Taxes, and Clearance & Documentation.

Reason 1: Physical Inspection

Shipments can be delayed if Customs or relevant authorities need to perform a physical inspection. This process involves examining the goods after they’ve been declared for shipment.

Valuation Related
Customs officials will check the declared value of items listed on the commercial invoice. If they believe the value is underreported, they might request proof of payment from the recipient. Undervaluing items can result in fines, additional taxes, and even audits.

💡 Solution: Provide proof of purchase, such as receipts, credit card statements, or order confirmation emails, to verify the declared value. Always declare the actual transaction value instead of the manufacturer’s price.

Classification Discrepancies
Customs will also check the accuracy of HS Codes (Harmonized System Codes) used in the commercial invoice. HS Codes are standardized globally to identify and classify traded goods. In other words, they determine the applicable duties and taxes. Incorrect or disputed HS Codes can lead to inspection delays, extra fees, or penalties.

💡 Solution: Ensure you provide detailed and accurate information about each item. Include catalogs or technical details to support the assigned HS Code.

Confiscation Risks
Customs may confiscate shipments if the items fall into a prohibited category. For example, they pose a health and safety risk. Confiscation is done to prevent the entry of illegal, harmful, or dangerous goods into the country.

💡 Solution: Contact the Customs directly.

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Reason 2: Duties and Taxes

Delays can also occur due to issues related to duties and taxes.

Pending Duty and Tax Payment
Delays can happen if payment of duties and taxes is pending. Customs clearance cannot proceed until these payments are made. Each country has a threshold, known as the de minimis value. In Malaysia, this threshold is RM500. If your shipment exceeds this amount, you must pay duties and taxes before Customs can release your goods. Failure to pay could result in the parcel being seized, returned, or disposed of.

💡 Solution: Settle any outstanding duties and taxes.

High Duty and Tax Payments
For shipments where duties and taxes exceed RM5000, payment may need to be made via check or bank transfer.

💡 Solution: Follow the instructions provided by the clearance team to make the payment.

Expired Duty Exemptions
Duty exemptions allow certain goods to be imported without paying duties. However, these exemptions have validity periods. If an exemption has expired, Customs will require new or updated paperwork.

💡 Solution: Obtain the updated paperwork for duty exemptions.

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Reason 3: Clearance and Documentation

Issues with customs clearance and documentation can also lead to delays.

Incomplete Documents Provided
The commercial invoice and other paperwork contain crucial information that customs authorities need to classify and assess the goods properly. If documents are missing or inaccurate, Customs may not be able to process the shipment.

💡 Solution: Ensure all required paperwork, particularly commercial invoices, is provided upon.

Permits Required
Certain restricted items require permits or specific paperwork, which must meet customs requirements. Customs brokers will inform the recipient if any permits are needed. Shipments lacking the required permits or containing prohibited items may be confiscated by Customs.

💡 Solution: Apply for the necessary permits as instructed. Consider consulting a customs broker for professional guidance and compliance.

Clearance Approval
Customs may require additional approval for clearance based on specific paperwork or duties.

💡 Solution: Follow the instructions from the customs clearance team and provide any additional documentation as requested.

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