October 14, 2019

Malaysia revises export duty structure CPO

Malaysia will revise its price band export duty structure for Crude Palm Oil (CPO) next year, according to a Reuters report this morning. In most cases the revised export duty structure will lead to a modest 0.5 percentage point duty cut. For the price band RM 2,250 – RM 2,400 per tonne, however, the new structure will result in a more substantial duty cut (1.5 percentage point). For more information, see table below.

The last time that the Malaysian CPO market price exceeded the trigger export duty price level of RM 2,250 per tonne was in August 2018 (RM 2,284.26 / tonne). 

Malaysia's export duty structure for Crude Palm Oil (CPO)

CPO market price

(FOB Malaysian Ringgit / tonne)

 

Present duty (%)

 

Export duty 2020 (%)

< RM 2,250

NIL

NIL

RM 2,250 – RM 2,400

4.5

3.0

RM 2,401 – RM 2,550

5.0

4.5

RM 2,551 – RM 2,700

5.5

5.0

RM 2,701 – RM 2,850

6.0

5.5

RM 2,851 – RM 3,000

6.5

6.0

RM 3,001 – RM 3,150

7.0

6.5

RM 3,151 – RM 3,300

7.5

7.0

RM 3,301 – RM 3,450

8.0

7.5

> RM 3,450

8.5

8.0

 MVO will ask the Malaysian authorites for an official confirmation of this revision.

 

Last modified: October 14, 2019