PUTRAJAYA – Excise duty on electronic and non-electronic cigarette devices and vape gels or juices, including non-nicotine types, will be imposed during importation beginning 2021, said Customs Department director-general Datuk Seri Abdul Latif Abdul Kadir in a statement today.
He said exceptions will be given to local manufacturers.
Devices will be charged excise duty at an ad valorem rate of 10%, while liquids and gels will be charged at 40% per ml, he added.
Latif said local manufacturers would be licensed under Section 20 of the Excise Act 1976 with a payment of RM4,800 a year, while warehouse licence fees under Section 25 of the same act is RM2,400 a year.
“Local manufacturers have to apply at the respective zone or state Customs Department offices where their factories or warehouses are located before December 15,” he said.
The documents required for application include an application letter for the excise licence (Customs No.1 form), business or company registration certificate under the Companies Commission of Malaysia or local authorities for Sabah, Sarawak and the Federal Territory of Labuan, raw ingredients list, finished products list, manufacturing flow chart, annual manufacturing capacity, and acknowledgement of nicotine content in the liquid or gel products.
"Licence holders are required to comply with licensing guidelines and to attach a bank guarantee to secure the duty or tax,” he said.
Latif said manufacturers can refer to the FAQ page on the Customs Department website for more information. – Bernama, December 8, 2020
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