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246615551.Pdf 1 CUSTOM & EXCISE SLIDE A 1 Zulhilmi b. Muhammad Nasir JLD20802 Room: 1421 HP: 019-2934883 [email protected] 2 ABBREVIATIONS ATIGA – Asean Trade in Goods Agreement AHTN – Asean Harmonised Tariff Nomenclature HS – Harmonised System IL – Import Licence EL – Export Licence CCCN – Custom Co-Operation Council Nomenclature SITC – Standard International Trade Classification MITI – Ministry of International Trade and Industry MAI – Malaysia Automotive Institute MIDA – Malaysian Industrial Development Authority MATRADE – Malaysia External Trade Development Corporation MPC – Malaysia Productivity Corporation MIDF – Malaysia Industrial Development Finance Berhad 3 “ VISION “ 4 VISION, MISSION & ETHICS VISION Making Malaysian Customs Mission services world class in 2015 Spurring economic growth, preserving national security and well-being of the people through revenue collection ETHICS services, facilitation of trade and industrial and Trustworthy Services, ensuring adherence to the Sincere and Dedicated laws through efficient and (A.B.I.D.) effective means Amanah Berkhidmat Ikhlas Berdedikasi 5 ORGANIZATION CULTURE TRUST T Togetherness (Bersatu Hati) R Respect (Saling Menghormati) U Understanding (Faham Memahami) S Spiritual (Kerohanian T Totality (Menyeluruh) 6 HISTORY 1.Maritime and harbour laws existed along with matters pertaining to a tax structure involving the foreign and local merchants. 2. Chief of the E xchequer – responsible on tax matter 3. controlled all the revenue and Customs Officers and looked after the palace building and equipment". (R.J.W. Wilkinson "The Melaka Sultanate". JMBRAS VOL. XIII-Pt.2, 1935, p.31). 4. The portfolio in charge of tax collection was the Harbour Master. He was entrusted by the king with the power to enforce rules and Harbour Laws. 13 TAX ADMINISTRATION – THE STRAITS SETTLEMENTS AND FEDERATED MALAY STATES The Straits Settlements – S‟pore, Penang, Melaka, Labuan & Dinding in Perak Tax administration - supervised by Governor - Council directly answerable to Governor General in Calcutta, India - controlled by Board of Governors of East India Company as a body were operated the activities. active until 1937 14 INTRODUCTION @ BACKGROUND Came effect on 22 Oct, 1934 was known as Trade and Customs Department. Function is to compile trade statistics, which is now performed by the Statistics Department In year of 1964, the Department was conferred with the title “ROYAL” and from then onward the Department was known as the ROYAL CUSTOMS & EXCISE DEPARTMENT until early 2002. Now the Department is known as the ROYAL CUSTOMS DEPARTMENT . 15 ROLE Import Duty Export Duty Sales Tax Excise Duty Service Tax Vehicle Levies 17 IMPORT DUTY Duty import rates vary according to the type of imported goods. The rates imposed on each good imported is describe in column 4 and 5 of the First Schedule under the Customs Duties Order 1996. It is possible that imported goods are exempted from the import duty. However, it is not exempted from the sales tax. 18 EXPORT DUTY Column 5 of The First Schedule under the Customs Duties Order 1996 indicates the export duty rates imposed on particular exported goods. The word "Nil" printed in column 4 and 5 in the Customs Duties Order 1996 indicates no export and import duties will be levied on export and imported goods. 19 PORTS IN MALAYSIA Kuah, Langkawi • Teluk Ewa, Langkawi Pulau Pinang, Butterworth Lumut, Perak Port Klang, Selangor Melaka, Melaka Pasir Gudang / Tanjung Belungkor / PTP Kuantan / Tanjung Gelang Kemaman Pengkalan Kubor, Kelantan Kota Kinabalu / Labuan / Sandakan Kuching / Miri / Sibu, 40 7 - MAJOR CONTAINER PORTS 1. Northport, Klang - Northport (M) Bhd 2. Westports, Klang - Westports Malaysia Sdn Bhd 3. Penang Port, Penang 4. Port of Tanjung Pelepas (PTP), Johor 5. Johor Port, Johor 6. Bintulu Port, Sarawak 7. Sapangar Bay Container Port, Sabah - Sabah Port Sdn Bhd 41 LAND • Padang Besar, Perlis • Wang Kelian, Perlis • Bukit Kayu Hitam, Kedah • Pengkalan Hulu, Perak • Johor Bahru, Johor • Gelang Patah, Johor • Rantau Panjang, Kelantan • Sindumin, Sabah • Tebedu, Sarawak • Sungai Tujuh, Sarawak 42 IMPORT - DIAGRAM Senai Airport Bonded Singapore CIQ Warehouse Pasir Gudang Port Importer Importer Importer C A B - LMW Sabah Port 45 IMPORT LEGAL PROVISION, DOCUMENTATION AND PROCEDURES Import flow All goods meant for import and export either it is under import/export duty or otherwise must be declared in writing in the respective forms; customs form No 1 for imported goods and customs form No 2 for exported goods. Declaration forms must be filled in detail including providing true information regarding the number, description of packages/crates, value, weight, quantity and type of goods. The origin of the goods will also need to be informed. This applies for goods meant for exports as well where the final destination of the goods is notified. Completed Custom forms will need to be submitted to Customs offices at the place where the goods are to be imported or exported. 47 2.3 The „balancing‟ of inward manifest constitutes a significant exercise to both custom authorities and the ship or aircraft agents. Meaning that every item of cargo listed in the manifest must be accounted for and balanced by custom declaration. As regards this balancing exercise, the ship or aircraft agent is required to prepare and submit the related outturn certificate to Customs. Section 55, Custom Act 1967 2.4 Time of making Customs Declaration The time for submitting Customs declaration differs with the manner of importation and this may comprise :-:- 51 A ) Dutiable Goods :- ii) Exempted from warehouse At the time of arrival of goods at the place of import –– Sec.78(2) iii) Goods imported by road At the time of arrival of goods at the place of import –– Sec.78(2) iv) Goods imported by post On demand by proper officer ofof customs –– Sec.78(3) B). Non-Dutiable Goods ii) Import by rail At the time of delivery of the goods –– Sec.82 iii) Import by road At the time of arrival at the place ofof import –– Sec.83 52 METHOD OF ENTRY IMPORTED CARGO The owner of imported goods has a choice in the method of entry and dealing with the goods on the appropriate Custom declaration form :- b)b) Warehouse in a bonded warehouse without payment of customs duties until the goods are declared ex-warehouse for home use or for export as the case may be. --Custom Form No.1 duly stamped ”For Warehousing” by Customs c)c) Clearance for home use from Licensed Warehouse must be declared in Custom form no.9 d) TTransshipment into another carrier for export to a foreign country - Customs Form No.9 e) TTransit overland in approved vehicle to another Customs port or Station for export to free zone or toto foreign country –– Custom form No.8 and support by appropriate Security (Banker‟s Guarantee / General Bond). When applicable, import license should be submitted if the goods are subject to prohibition. f) f) Overland transit for removal and clearance at another Customs Station in Malaysia –– made of transport must be approved and appropriate security must be furnished. g) g) Transportation between Sabah or Sarawak or to West Malaysia or vice versa firstly, payment of Customs duties should be settled and subsequently transported to Malaysia territories by way of declaring in Custom Form No 3. If the goods are subject to control under Custom (Restriction of Movement) Order 1988, permission must be first obtained from the respective authority. 53 PREPARATION OF CUSTOM DECLARATION AND SUBMISSION OF DECLARATION a) In accordance with the choice in the method of entry, the appropriate prescribed Custom declaration for the goods in the number of copies as required by the Customs Authorities should be prepared and submitted at the respective entry point b) All particulars in the prescribed from are duly completed, particulars with the respect to shipping marks, numbers and types or packages, description of goods, tariff classification, unit and total value of goods. Accuracy in completing the Customs Declaration is highly essential. This is where most importers default and have caused untold displeasure and inconvenience to the authorities. c) Custom declaration can be made either by the owner of goods or by a forwarding agent licensed by Customs and duly authorized by the owner of the goods (Sec.90, Custom Act 1967 . d) Custom declarations must be presented at the respective Custom Office for registration and checking and may be rejected for amendment if found to be incorrect e) To permit rapid clearance of goods, especially perishable goods, provisions have been made for customs declaration to be accepted and duty paid before the goods arrive. This so called “direct release system” is , of course dependent on : e1) The early submission of the inward manifest; and e2) Timely submission of properly completed Customs declaration and proper documents to the customs (Sec.74(1) Custom Act SUPPORTING DOCUMENTS Bill of Lading or Consignment Invoice Certificate of Origin – relevant to any preferential rate of duty Bank documents such as letter of Credit, etc Packing List / Weight List Import license where necessary CUSTOM EXAMINATION OF GOODS Custom declaration that have duly passes “ Custom checking process” are sent by Customs to the place at which the goods are landed. There are Customs will selectively examine the good physically in the presence of the owner or his agent. Custom inspection determine the following :- Whether the import goods are truly and correctly described in the customs declarations.
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