Malaysia Updates Customs Act With New Customs Violations, Enforcement Regulations
Malaysia’s recent amendments to its Customs Act includes updates to the country’s regulations for customs violations, enforcement, record-keeping requirements and more, according to a Federal Gazette notice. The amendments, detailed in a 100-page document that took effect July 9, “represents the most significant round of changes” to the country’s Customs Act, Baker McKenzie said in a July 16 post.
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As part of the changes, Malaysia is extending the “timeline” from three to six years “within which” the country’s customs department “may demand for payment of duties underpaid,” the post said. The changes also include a section on compounding offenses and introduce new categories of customs violations, including manipulating data stored in a computer, illegal drawback claims and illegal refund claims, the Federal Gazette notice said. In addition, customs officers now have new enforcement powers, including the “power to intercept communications,” Malaysia said.
The amendments include new regulations for record-keeping that require records to be kept ”up to date of all transactions which affect or may affect” obligations “on any matters under the Act.” This includes all records of imports and exports, bank records, “all accounting management and financial records, sales and purchase records including invoices” and inventory records, Malaysia said.
Baker McKenzie said “a comprehensive understanding of the new customs regime is key” for business compliance, adding that that changes “warrant a review of existing processes and practices.”