This glossary defines the customs, shipping and haulage terms a Malaysian importer or exporter meets most often. Each entry gives a plain-English definition and links to the in-depth guide where DNE Forwarding explains it in context. Use it as a quick reference while you read the rest of the site.
How to use this glossary
- Terms are listed alphabetically; each links to a full guide.
- Definitions reflect Malaysian customs and Port Klang practice, not generic theory.
- Unsure where to start? The four pillars are customs clearance, freight forwarding, container haulage and importing into Malaysia.
What do the key logistics and customs terms mean?
AEO (Authorised Economic Operator)
A JKDM trusted-trader status that gives compliant companies faster, "green-lane" customs clearance. See AEO fast-track customs.
AHTN (ASEAN Harmonised Tariff Nomenclature)
The 8–10 digit extension of the global HS code used across ASEAN, including Malaysia, to classify goods for duty. See finding your HS code.
Bill of Lading (B/L)
The carrier’s document that is both the contract of carriage and the title that controls release of sea cargo. See telex release vs original B/L.
Bonded Warehouse
A licensed facility where imported goods are stored with duty and tax suspended until they are released. See bonded vs FTZ vs LMW.
CIF (Cost, Insurance, Freight)
An Incoterm, and the valuation basis for Malaysian duty and SST — duty is charged on the cost of the goods plus insurance and freight. See Incoterms.
Customs Value
The value a declaration is taxed on — in Malaysia the CIF value, not the bare invoice price. Under-declaring it is a leading cause of a post-clearance audit.
Demurrage
A charge billed by the shipping line when a container stays inside the port beyond its free time. See avoiding demurrage and detention.
Detention
A charge billed when you keep a container at your premises beyond the free days after collection. The flip side of demurrage — see how to avoid both.
Duty Drawback
A refund of import duty already paid on goods that are later re-exported. See claiming duty drawback.
FAF (Fuel Adjustment Factor)
A surcharge on haulage that moves with the diesel price, forming part of the total haulage rate. See haulage rates and routes.
FCL (Full Container Load)
A shipment that books a whole container for one consignee, versus sharing one. See FCL vs LCL.
FOB (Free On Board)
An Incoterm where the seller delivers the goods loaded onto the vessel and the buyer takes over from there. See Incoterms.
Free Trade Zone (FTZ)
A designated zone treated as outside the customs territory, so goods can be handled with duty deferred or removed. See FTZ warehousing savings.
Haulage (KA licence)
The inland trucking of sea containers; in Malaysia it requires a dedicated "KA" haulage licence. See the haulage guide.
HS Code (Harmonized System)
The global product-classification code maintained by the World Customs Organization that sets your duty rate and permit requirements. See finding your HS code.
Import Duty
A tax on imported goods set as a percentage by the HS code and published by the Royal Malaysian Customs Department. See calculating duty + SST.
Incoterms
International Chamber of Commerce rules (FOB, CIF, DDP and others) that define who pays for and risks each leg of a shipment. See Incoterms for importers.
K-Forms (K1, K2, K8, K9)
Malaysia’s customs declaration forms: K1 import, K2 export, K8 transit/re-export, K9 release from a bonded warehouse. See the K-forms guide.
LCL (Less than Container Load)
A shipment that shares container space with other consignees’ cargo, consolidated and de-consolidated at each end. See FCL vs LCL.
LMW (Licensed Manufacturing Warehouse)
A licensed facility for export-oriented manufacturers to import raw materials with duty suspended. See bonded vs FTZ vs LMW.
MAQIS
The Malaysian Quarantine and Inspection Services agency, which controls imports of food, plants, animals and related goods. See importing food (MAQIS permits).
MyCIEDS
The system for submitting customs supporting documents (invoices, packing lists, permits) — not where declarations are lodged. See MyCIEDS digital customs.
Prohibited & Restricted Imports
Goods that may not be imported at all, or only with a permit from a regulator such as MITI or SIRIM. See the prohibited & restricted list.
SMK (Sistem Maklumat Kastam)
The live Malaysian customs system through which declarations are lodged via the National Single Window. The successor uCustoms is not yet operative.
SST (Sales and Service Tax)
Malaysia’s consumption tax; sales tax on imported goods is a standard 10% on the CIF value (some goods 5% or exempt). See SST on imports.
Telex Release
An electronic release of sea cargo that removes the need to courier original bills of lading, speeding collection. See telex vs original B/L.
TEU (Twenty-foot Equivalent Unit)
The standard unit for counting container volume; a 40ft container is two TEU. Port Klang handled 15.14 million TEU in 2025, up from 14.64 million in 2024, according to the Port Klang Authority.
Transhipment
Moving cargo from one vessel to another at an intermediate port (a hub) rather than carrying it straight through. Port Klang is a major transhipment hub.
uCustoms
The long-planned successor to SMK; it is not yet the live declaration system, so current declarations still go through SMK.
VGM (Verified Gross Mass)
The verified weight of a packed container that, under SOLAS rules, must be declared before it can be loaded onto a ship. See VGM for exporters.
Where can you go deeper?
Every term above links to a full guide. For the big picture, start with importing into Malaysia or browse the complete library of logistics guides. Common questions are answered in the logistics FAQ, and you can compare your options in shipping comparisons. Need a hand with a specific shipment? See our services.