Malaysia has announced the implementation of updated Product Specific Rules (PSR) under the ASEAN–Korea Free Trade Area (AKFTA) based on the Harmonized System (HS) 2022 nomenclature, effective 1 May 2026. The changes apply to Appendix 2 of Annex 3 (Rules of Origin) under the ASEAN–Korea Trade in Goods Agreement and will affect exporters utilizing preferential tariff treatment under Form AK.
A particularly important compliance element in the announcement relates to the treatment of approved Cost Analysis (CA) applications. Malaysian authorities have advised exporters with existing approved CA under HS 2017 to review the official HS 2017-to-HS 2022 correlation table before applying for preferential Certificates of Origin (Form AK). Critically, where the approved CA involves changes to the first six digits of the HS classification under HS 2022, exporters must submit a new CA application reflecting the updated tariff classification.
This requirement has significant implications for companies relying on existing origin qualification approvals. Businesses can no longer assume that previously approved CA arrangements under HS 2017 remain automatically valid under the revised HS 2022 framework, particularly where tariff restructuring has occurred at the six-digit level.
From a trade compliance perspective, exporters should immediately conduct a detailed mapping exercise between existing HS 2017 classifications and HS 2022 equivalents to identify affected products. Internal origin calculations, bills of materials, supplier declarations, ERP master data, and customs documentation should also be reviewed to ensure consistency with the revised nomenclature.
Failure to update CA approvals where required may expose companies to preferential duty denial, customs reassessment, or post-clearance audit challenges. The development reinforces the increasing importance of proactive tariff classification governance and origin management within free trade agreement compliance programs.
Please refer to the official announcement from the Ministry of Investment, Trade and Industry:
https://www.dagangnet.com/wp-content/uploads/2026/04/Announcement-AKFTA-in-HS-2022.pdf