Until June 2025, Malaysian exporters are subject to 10% reciprocal tariffs to exports to the U.S.

How can Malaysian exporters reduce their effective exposure to below 10% during this period? As part of our tax awareness CSR initiative, Thenesh Kannaa of TRATAX was live on-air at Astro AwaniNiaga sharing techniques to reduce the tariff exposure legitimately.

The techniques include legitimate exclusions for freight and insurance cost, logistics costs, ‘First Sale’ rule that excludes the middleman margin from dutiable value and the importance of proper tariff classification. He also deliberated on the value exclusions for raw materials and components originating from the US for the purposes of manufacturing in Malaysia and re-export to the U.S.

Thenesh emphasises on the importance to comply with the origin rule and to seek professional support to ensure compliance and tax efficiency.

Below is the link for replay of the live session.

Thenesh is an Executive Director of TRATAX & International Tax Leader for the APAC region of WTS Global.