Customs laws in Malaysia are administered by the Royal Malaysian Customs Department (“RMCD”).
Customs laws in Malaysia are administered by the Royal Customs Department (“RMCD”).
By 2017 or earlier, the RMCD will begin to phase out the existing system in stages and switch to a new platform named “uCustoms”, described as “a fully integrated, end-to-end, Customs modernization solution that delivers Single Window for goods clearance.” The new web-based system, as well as a range of revisions to the existing Customs laws, are amongst a series of efforts by the Malaysian Government aiming to modernize the Malaysian Customs landscape.
The Ministry of International Trade and Industry (“MITI”) is the lead agency for negotiating Free Trade Agreements and the authority for the endorsement of Preferential Certificates of Origin. MITI also regulates trade policy, administer trade remedies (antidumping and countervailing, safeguard measures), manage Export Controls (Strategic Trade Act 2010), and issues import and export license for a number of restricted products.
The new Customs environment, along with changes to a number of trade laws as a result of Trans Pacific Partnership Agreement implementation and/or ASEAN Economic Community initiatives will demand higher standards of compliance. Traders that maintain high quality Customs processes will stand to benefit, while traders that fail to manage their Customs compliance functionality well will lag behind.
Keeping up with these dynamic changes may not be a straightforward process for many.
Already, post import audit activities are increasing. Retroactive duty claims on grounds of non-compliance, misclassification and indefensible valuation positions are growing.
Our team of Customs and Trade specialists provide solutions and supports to businesses in the following areas:
Please do feel free to contact us if you require any further information on the above.
On a separate note, Customs and Trade issues do often affect your organization in various ways and may also give rise to GST issues. Should you have any concerns in the area of GST, kindly click here to find out how KPMG can assist you.