Malaysian SMEs can now capture a bigger share of the American consumer market following a revision in the de minimis threshold, with items valued at US$800 and below being exempted from import duties.
The de minimis threshold is the amount at which US import duties apply. With the limit being increased from US$200 to US$800 Malaysian retail exporters on eBay will be able to sell higher priced items into the US with much lower barriers such as additional duty charges, hold-ups in customs, and paperwork.
Coupled with the ease of access and reach of eBay, retail exporters can look forward to a shorter delivery period and hassle free document processing, with the amendment allowing them to bypass the US import customs formalities when the price falls under threshold value. American consumers, on the other hand, will be encouraged to buy more due to the increased affordability, leading to better export sales opportunities for retail exporters.
“This is a great opportunity for Malaysia’s retail exporters on eBay who are seeking to grow their net sales to customers in the United States. In essence, the amendment allows for exports to the United States valued at US$800 and below to be exempted from import duties, as compared to only US$200 before the revision,” said Wong Mei Inn, Country Head Cross Border Trade, eBay Malaysia.
“With the US being the number one export destination for eBay Malaysia sellers, this is the perfect time to pitch in, with the ongoing strength of the US Dollar preceding and the economic strength of the country generating a positive outlook for 2016,” she added.
The amendment will also enhance logistic management for Malaysia’s retail exporters on eBay, with higher value products shipped directly to the US market paving the way for better management of supply chain and better control of inventory costs. Malaysia SMEs can expect a win-win situation with the barrier of cross-border e-commerce lowered, creating an opening for boosting exports to the US market.
Currently, the US market looks promising to Malaysia’s eBay retail exporters with its strong purchasing capacity per capita and high expenditure in e-commerce. The growth is fuelled by the popularity of online shopping and well-developed online shopping habits, and further attributed to strong overall business norms in the US with excellent support facilities on hand.
eBay previously signed a joint memorandum with MATRADE on cross border e-commerce, developed to drive export businesses via the online marketplace. The partnership sees eBay and MATRADE providing sponsorship to small medium businesses in Malaysia to build retail export businesses online, enabling them to market their products to a global market.
With a commitment to build and elevate retail export businesses and SMEs in Malaysia, eBay offers SMEs with access to an eBay Premium Store for a discounted subscription price of RM1,500.00 for the subscription period of one (1) year.