Malaysia legislation
Section 22
Section 22
“Power of Director General to require security
The principal Act is amended by inserting after Part IV the following Part:
“PART IVa
TRANSIT AND TRANSHIPMENT
Transits allowed 35a. (1) Subject to the provisions of this Part, the following transits are allowed:
(a)
goods imported into the country—
(i)
on board a vessel, aircraft, vehicle or a railway carriage to be transported through
Malaysia from the place of import in
Malaysia whether the goods were unloaded or not from the vessel, aircraft, vehicle or railway carriage to a place of exit from where the goods are to be taken out from
Malaysia; or
(ii)
on board a vessel, aircraft, vehicle or railway to be transported through Malaysia from the place of import in Malaysia to a place under customs control;
(b)
movement of goods from a place under customs control to a place of exit in Malaysia for the purpose of export; and
(c)
movement of goods under customs control from a place to another place in Malaysia.
(2)
The payment of customs duties for the imported or exported goods which moved in transit under subsection (1)
may be temporarily suspended subject to such conditions as determined by the Director General.
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Commencement and completion of transit procedure 35b. (1) Subject to subsection (4), the transit procedure commences when the goods are cleared for transit and completes when such goods are cleared and released for another customs procedure approved by the proper officer of customs or for home consumption.
(2)
Goods moved under the transit procedure shall reach the destination point as indicated in the declaration, and be exported within the period as determined by the
Director General.
(3)
Notwithstanding subsections (1) and (2), the transit procedure, in relation to any goods, ends before its completion if it is interrupted by any of the following circumstances:
(a)
the release of the goods for the transit procedure is withdrawn;
(b)
the goods have been—
(i)
released for home consumption not according to the approval given by the proper officer of customs;
(ii)
released for export not according to the approval given by the proper officer of customs; or
(iii)
moved not under customs control;
(c)
the goods have been abandoned;
(d)
the goods have been seized under this Act or any other written law; or
(e)
the goods are destroyed, lost or unaccounted for.
(4)
Without prejudice to any proceedings under this Act, where any dutiable goods moved under transit procedure ends before its completion as a result of the circumstances under
Customs (Amendment)
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subsection (3), the owner of the goods or his agent shall be liable to pay the duty leviable on such dutiable goods and any security furnished under this Act may be forfeited and paid into the Consolidated Fund.
(5)
Any person who contravenes subsection (2) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
Safeguard against any unauthorized interference with goods in transit 35c. (1) The Director General may require the owner of the goods to take the necessary measures to safeguard against any unauthorized interference with goods in transit.
(2)
Any person who fails to comply with the request made by the Director General under subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
Determination of customs ports and airports for transit 35d. (1) The Director General may determine—
(a)
the customs ports and airports where goods may be off-loaded from vessels or aircraft for transit; or
(b)
the customs ports and airports where goods may be loaded on board vessels or aircrafts for export from
Malaysia under the transit procedure.
(2)
No person shall load or off-load goods for transit except at the customs port or airport as determined under subsection (1).
(3)
Any person who contravenes subsection (2) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
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Determination on routes for transit 35e. (1) The Director General may determine the routes, by road or railway, over which goods may be transported under the transit procedures.
(2)
No person shall transport goods for the purpose of transit operation over a road or railway route other than a route determined under subsection (1).
(3)
Any person who contravenes subsection (2) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
Persons entitled to submit declaration for transit 35f. The following persons are entitled to submit declarations and supporting documents to clear goods for the purpose of transit:
(a)
the owner of the goods;
(b)
the licensed carrier or any other person as approved by the Director General under subsection 35g(2);
or
(c)
a customs agent.
Movement of goods in transit 35g. (1) Subject to subsection (2), no goods shall be moved in transit (including transhipment) by road except by a licensed carrier.
(2)
The Director General may, in special circumstances and subject to such conditions as determined by him, approve any person other than a licensed carrier to move goods in transit and transhipment.
Customs (Amendment)
(3)
Any person who contravenes subsection (1) or the conditions under subsection (2) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
Licensed carrier 35h. (1) The Director General may grant a licence to any person to act as a licensed carrier subject to such terms and conditions as he may deem fit and he may suspend or withdraw such licence.
(2)
In granting a licence under subsection (1), the Director
General may require such security to be furnished as he may consider adequate to cover the customs duty payable on the goods moved and for the faithful and incorrupt conduct of such licensed carrier and of the licensed carrier’s agents and employees acting for the licensed carrier both as regards to the customs and the licensed carrier’s employers.
(3)
The licensed carrier who carries out the transit or transhipment operation shall ensure such operation is carried out and completed in accordance with this Act and the necessary measures required by the Director General under subsection 35c(1) or 35k(1).
(4)
If the licensed carrier who carries out the transit or transhipment operation is not the person who submits the declaration or other document for such operation, the licensed carrier and the person who submits the declaration shall be jointly and severally liable for the customs duty due and payable and the obligation referred to in subsection (3).
(5)
If the licensed carrier who carries out the transit or transhipment operation is the person who has subcontracted the transport of the goods to another carrier, the licensed carrier and the other carrier shall be jointly and severally liable for the customs duty due and payable and the obligation referred to in subsection (3).
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(6)
Any person who contravenes subsection (3) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
Transhipment goods to be deposited in warehouse 35i. (1) Goods arriving in Malaysia for transhipment and landed at a customs port or airport to await the arrival of the vessel or aircraft to which they are intended to be transhipped shall, if they are dutiable or prohibited on import or export, as the case may be, or belong to a class of such goods, be deposited in a customs or licensed warehouse, or a warehouse or other place approved by the Director General, until such goods are loaded on board the vessel or aircraft and transported out of Malaysia.
(2)
The owner or agent of the goods for transhipment is liable to any storage charges, handling charges, warehouse rental and other charges at the rates applicable to such goods or, if such rates are not prescribed, at the prescribed rates applicable to such goods prior to transportation out of Malaysia.
(3)
No goods for transhipment may be moved between two or more places under customs control at the customs port or airport where the goods were off-loaded without the prior permission of the proper officer of customs.
(4)
The Director General may exempt any particular goods from the operation of this section.
(5)
Any person who contravenes subsection (1) or (3) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
Commencement and completion of transhipment procedures 35j. (1) Subject to the provisions of this Part, the Director
General may allow any goods imported to be moved under transhipment procedure subject to such conditions as determined by the Director General.
Customs (Amendment)
(2)
The transhipment procedure commences when the goods are cleared for transhipment and completes when such goods are cleared for export.
(3)
Notwithstanding subsection (2), the transhipment procedure, in relation to any goods, ends before its completion if it is interrupted by any of the following circumstances:
(a)
the release of the goods for the transhipment procedure is withdrawn;
(b)
the goods have been—
(i)
released for home consumption not according to the approval given by the proper officer of customs;
(ii)
released for export not according to the approval given by the proper officer of customs; or
(iii)
moved not under customs control;
(c)
the goods have been abandoned;
(d)
the goods have been seized under this Act or any other written law; or
(e)
the goods are destroyed, lost or unaccounted for.
(4)
Without prejudice to any proceedings under this Act, where any dutiable goods moved under transhipment ends before its completion as a result of the circumstances under subsection (3), the owner of the goods or his agent shall be liable to pay the duty leviable on such dutiable goods and any security furnished under this Act may be forfeited and paid into the Consolidated Fund.
Safeguard against any unauthorized interference with goods under transhipment 35k. (1) The Director General may require the owner of the goods to take the necessary measures to safeguard against any unauthorized interference with goods under transhipment.
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(2)
Any person who contravenes the request made by the Director General under subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
Non-compliance with completion periods 35l. (1) If—
(a)
transhipment procedure does not commence or is not completed in accordance with subsection 35j(2); or
(b)
transhipment goods loaded on board the vessel or aircraft to be transported out of Malaysia are not exported in accordance with subsection 35j(2), the licensee of the licensed warehouse, or warehouse or other place approved by the Director General, or the master of the vessel or the pilot of the aircraft on board of which the goods were to be loaded for export, as the case may be, shall—
(A)
immediately notify the proper officer of customs of the delay, and the reasons for the delay; and
(B)
thereafter notify the proper officer of customs regularly, of the situation with regard to the commencement and completion of the transhipment procedure.
(2)
Any person who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
Delivery of goods for transhipment for loading on board outgoing vessel or aircraft 35m. (1) The master of a vessel or pilot of an aircraft or the agent of the vessel or aircraft under Part VII reporting the arrival of transhipment goods shall ensure that the goods are to be loaded on board the vessel or aircraft and be transported out of Malaysia at the customs port or airport to which the transhipment goods are intended to be transhipped under section 35i.
Customs (Amendment)
(2)
Any person who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
Responsibilities of licensee, owner or person handling goods for transhipment 35n. (1) Where goods are deposited under section 35i, the licensee of the licensed warehouse, or warehouse or other place approved by the Director General, the owner or the person handling such goods for transhipment, shall keep such records of the receipt, handling, storage and delivery of the goods as may be determined by the Director General.
(2)
The licensee, owner or person handling such goods for transhipment referred to in subsection (1) shall—
(a)
within two hours after the goods have been loaded on board such vessel or aircraft, submit to the proper officer of customs a certified statement in relation to the removal of the goods from the licensed warehouse, or warehouse or other place approved by the Director General; and
(b)
immediately notify the proper officer of customs if the goods are removed from the licensed warehouse, or warehouse or other place approved by the Director
General, for the purposes other than the loading of the goods on board such vessel or aircraft.
(3)
The certified statement submitted under paragraph (2)(a)
shall—
(a)
state that such goods are for transhipment; and
(b)
contain all the information as may be required by the Director General.
(4)
The certified statement submitted under paragraph (2)(a)
shall be submitted electronically unless approved otherwise by the Director General.
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(5)
Any person who contravenes subsection (1), (2), (3) or
(4)
shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.”.
Amendment of section 36