Duty Free Shops are licensed premises allowed to store and sell duty free goods to qualified buyers. They were established under Section 65D of the Customs Act 1967 to cater to the necessities and requirements of international tourists.
BackgroundDuty Free Shops were established for the first time in Penang following the withdrawal of its free port status towards the end of 1977, with the aim of allowing tourists to gain access of duty free goods in the island.
At the present, Duty Free Shops are located at these premises:
Basic Qualification For Duty Free Shops Applicants
Basically, there are five types of Duty Free Shops, that is International Airport Duty Free Shops, Port Duty Free Shops, Downtown Duty Free Shops, Border Duty Free Shops and Domestic Duty Free Shops.
Duty Free Shops at airports and ports can only be set up after prior approval for a commercial space had been obtained from the Airport or Port authority before the application can be approved by the Customs Department.
The establishment of Duty Free Emporiums / Complexes Downtown is subjected to these terms:
Application To Establish A Duty Free Shop
An application to establish a Duty Free Shop can be done using form JKED 1 and submitted directly to the State Director of Customs where the business will be operated. The following documents need to be attached:
The Duty Free Shop license is issued by the State Director of Customs of the state where the shop will be operated. The payment rate is RM1200 for two years or part thereof.
Terms Of Licence
The list of goods to be sold in a Duty Free Shop must get an approval first from the State Director of Customs. Goods that can be sold at Duty Free Shops are listed in Appendix A.
The licensee should furnish the Customs Department with a bank guarantee to cover the duties of goods kept in their premises. The value must cover the amount of customs duty/ tax for the maximum stock allowed to be kept at one time as approved by the State Director of Customs.
Duty Free Shops in the city and Domestic Duty Free Shops' licensees must send the goods bought by tourists to the Customs exit point / place of export and handover the goods to the purchaser in front of the Customs officer on duty at a special counter to prove that the goods will be and had been brought out of the country. If the goods were not proven as having been exported, the licensee is liable to pay customs duty / tax on the goods.
The licensee has to maintain and keep record of the company' sales and account. In cases of missing or unaccounted for goods, the licensee is responsible to pay all customs duty / tax involved to the Customs Department.
Duty Free Shops are prohibited from selling:
Duty Free Goods Supply Resource
Duty Free Shop licensees can get their duty free goods supply by these means:
Persons Eligible To Buy From Duty Free Shops
Duty Free Shops are allowed to sell duty free goods to:
However, for duty free goods bought at Duty Free Shops in the airport, at the border and at the port and imported into this country, tax need to be paid for purchases that does not fulfill the conditions for exemption under Item 19 Customs Duties (Exemption) Order 1988 and Item 19 Schedule B Sales Tax (Exemption) Order 1980.
Further information regarding Duty Free Shops is available at the nearest Customs Office or :
Royal Malaysian Customs Headquarters,
Customs Division,
Level 4 North, No.3 Persiaran Perdana,
Ministry of Finance Complex,
Precinct 2,
Federal Government Administration Center,
62592 Putrajaya.
Tel.: (603) 8882 2645
Fax: (603) 8889 5866
Appendix A
List of Dutiable Goods That Are Approved For Sale in a Duty Free Shop :
Duty Free Shops are licensed premises allowed to store and sell duty free goods to qualified buyers. They were established under Section 65D of the Customs Act 1967 to cater to the necessities and requirements of international tourists.
BackgroundDuty Free Shops were established for the first time in Penang following the withdrawal of its free port status towards the end of 1977, with the aim of allowing tourists to gain access of duty free goods in the island.
At the present, Duty Free Shops are located at these premises:
Basic Qualification For Duty Free Shops Applicants
Basically, there are five types of Duty Free Shops, that is International Airport Duty Free Shops, Port Duty Free Shops, Downtown Duty Free Shops, Border Duty Free Shops and Domestic Duty Free Shops.
Duty Free Shops at airports and ports can only be set up after prior approval for a commercial space had been obtained from the Airport or Port authority before the application can be approved by the Customs Department.
The establishment of Duty Free Emporiums / Complexes Downtown is subjected to these terms:
Application To Establish A Duty Free Shop
An application to establish a Duty Free Shop can be done using form JKED 1 and submitted directly to the State Director of Customs where the business will be operated. The following documents need to be attached:
Licence Period And Fees
The Duty Free Shop license is issued by the State Director of Customs of the state where the shop will be operated. The payment rate is RM1200 for two years or part thereof.
Terms Of Licence
The list of goods to be sold in a Duty Free Shop must get an approval first from the State Director of Customs. Goods that can be sold at Duty Free Shops are listed in Appendix A.
The licensee should furnish the Customs Department with a bank guarantee to cover the duties of goods kept in their premises. The value must cover the amount of customs duty/ tax for the maximum stock allowed to be kept at one time as approved by the State Director of Customs.
Duty Free Shops in the city and Domestic Duty Free Shops' licensees must send the goods bought by tourists to the Customs exit point / place of export and handover the goods to the purchaser in front of the Customs officer on duty at a special counter to prove that the goods will be and had been brought out of the country. If the goods were not proven as having been exported, the licensee is liable to pay customs duty / tax on the goods.
The licensee has to maintain and keep record of the company's sales and account. In cases of missing or unaccounted for goods, the licensee is responsible to pay all customs duty / tax involved to the Customs Department.
Duty Free Shops are prohibited from selling:
Duty Free Goods Supply Resource
Duty Free Shop licensees can get their duty free goods supply by these means:
Persons Eligible To Buy From Duty Free Shops
Duty Free Shops are allowed to sell duty free goods to:
However, for duty free goods bought at Duty Free Shops in the airport, at the border and at the port and imported into this country, tax need to be paid for purchases that does not fulfill the conditions for exemption under Item 19 Customs Duties (Exemption) Order 1988 and Item 19 Schedule B Sales Tax (Exemption) Order 1980.
Further information regarding Duty Free Shops is available at the nearest Customs Office or :
Royal Malaysian Customs Headquarters,
Customs Division,
Level 4 North, No.3 Persiaran Perdana,
Ministry of Finance Complex,
Precinct 2,
Federal Government Administration Center,
62592 Putrajaya.
Tel.: (603) 8882 2645
Fax: (603) 8889 5866
Appendix A
List of Dutiable Goods That Are Approved For Sale in a Duty Free Shop :