# Royal Malaysian Customs Department (RMCD): What It Does and Where You Meet It

> The Royal Malaysian Customs Department (RMCD/JKDM) is Malaysia's border agency and main indirect-tax collector, administering customs and excise duties, sales and service tax (SST), and enforcing anti-smuggling law under the Ministry of Finance.

- Category: taxation
- Language: en
- Status: published
- Updated: 2026-08-14
- Canonical: https://negaraku.md/en/taxation/royal-malaysian-customs-rmcd

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Every time you pay tax on a restaurant bill, clear a parcel through customs, or fill up a car built on an imported engine, one department is behind the charge: the **Royal Malaysian Customs Department (RMCD)** — *Jabatan Kastam Diraja Malaysia* (JKDM), commonly called *Kastam*. It is the government department under the **Ministry of Finance** responsible for collecting indirect taxes, facilitating trade and enforcing customs law, and it is the country's main indirect-tax collector.

## What does RMCD actually collect?

RMCD gathers national revenue in the form of **import duty, export duty, excise duty, sales tax and service tax**, along with levies including the **departure levy, vehicle levy, extraordinary profit levy and tourism tax**. Income tax is not on that list — direct taxes are handled by a separate agency, the Inland Revenue Board (LHDN).

To do this it administers a whole stack of statutes, including:

| Law | Covers |
|-----|--------|
| Customs Act 1967 | Import/export duties, clearance, enforcement |
| Excise Act 1976 | Excise on goods such as vehicles, alcohol, tobacco |
| Sales Tax Act 2018 | Sales tax on taxable goods |
| Service Tax Act 2018 | Service tax on taxable services |
| Tourism Tax Act 2017 | Tourism tax on accommodation |
| Strategic Trade Act 2010 | Controls on strategic and dual-use goods |

The scale is substantial: RMCD collected **RM55.1 billion** in revenue for 2023, exceeding its RM53.5 billion target by RM1.6 billion, with a target of RM56 billion set for 2024.

## How does the Sales and Service Tax (SST) work?

SST is where most businesses meet RMCD. It was **reintroduced from September 2018**, replacing the Goods and Services Tax (GST), under the Sales Tax Act 2018 and Service Tax Act 2018, and is administered through the **MySST** portal.

The **service tax rate** was 6% from September 2018 to February 2024, then rose to **8% effective 1 March 2024** — except for food and beverage, parking, logistics and telecommunications services, which remain at 6%. The **registration threshold** for sales tax (manufacturers) and for service tax is **RM500,000** in taxable turnover; on reaching it, a business must register through MySST.

The system keeps shifting. Effective **1 July 2025**, the government revised sales tax to 5% or 10% on discretionary, non-essential goods (essentials unchanged) and expanded service tax to sectors including leasing and rental, construction, financial services, private healthcare and education — with a grace period during which no penalties apply until 31 December 2025 for businesses taking steps to comply.

## Where do citizens and SMEs deal with RMCD?

Most people encounter the department at a few concrete touchpoints:

- **SST registration** — via the MySST portal once you cross the threshold.
- **Import and export clearance** — declaring goods and paying the assessed duties and taxes at ports, airports and land borders.
- **Duty and tax payment** — settling import duty, excise and SST.
- **Enforcement** — inspections and seizures where goods are undeclared or prohibited.

On enforcement, RMCD is described as the nation's **first line of defence against smuggling**, ensuring imported and exported goods are correctly declared and duties paid while detecting prohibited items such as drugs and firearms — without disrupting legitimate trade.

## Who runs it, and since when?

RMCD was **established in 1931** and conferred **'Royal' status on 29 October 1963** by the Yang di-Pertuan Agong; it is headquartered in **Putrajaya**. It is headed by a **Director-General of Customs** assisted by three deputy directors-general, with the role currently held by Dato' Haji Amran bin Haji Ahmad. Its specialised units include a **Marine Unit** (established 1917), a **K9 drug-detection dog unit** (1978) and the **Royal Malaysian Customs Academy (AKMAL)** (1989); the department also runs a Customs Museum.

## What's next

If you import or export, confirm the customs duty and excise that apply before you declare your goods. If you run a business, check whether you cross the **RM500,000** SST threshold and register through **MySST**. For income tax and other direct taxes, refer instead to the Inland Revenue Board (LHDN).

## Sources

- Royal Malaysian Customs Department — https://en.wikipedia.org/wiki/Royal_Malaysian_Customs_Department (Wikipedia)
- Pengurusan Tertinggi Jabatan (Top Management) — https://www.customs.gov.my/en/corporate/top-management (Royal Malaysian Customs Department (customs.gov.my))
- Background — MySST — https://mysst.customs.gov.my/background (Royal Malaysian Customs Department (mysst.customs.gov.my))
- Kastam Kutip Hasil RM55.1 Bilion Tahun Lepas — https://mof.gov.my/portal/ms/berita/akhbar/kastam-kutip-hasil-rm55-1-bilion-tahun-lepas (Ministry of Finance Malaysia (mof.gov.my))
- Targeted Revision Of Sales Tax Rate And Expansion Of Service Tax Scope Effective 1 July 2025 — https://www.mof.gov.my/portal/en/news/press-release/targeted-revision-of-sales-tax-rate-and-expansion-of-service-tax-scope-effective-1-july-2025 (Ministry of Finance Malaysia (mof.gov.my))
- Peranan Pegawai Penguatkuasa Kastam Sebagai Benteng Memerangi Penyeludupan — https://www.mof.gov.my/portal/ms/berita/siaran-media/peranan-pegawai-penguatkuasa-kastam-sebagai-benteng-memerangi-penyeludupan (Ministry of Finance Malaysia (mof.gov.my))

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