INSTITUTIONAL AND LEGAL FRAMEWORK

by
Royal Malaysian Customs Department & Port Klang Authority
 ROYAL MALAYSIAN CUSTOMS DEPARTMENT

Established under Law of Malaysia Act 235

Customs Act 1967
Under the preview of Ministry of Finance.

Vision : A World Class Customs Administration

Mission : Collect Revenue and Provide Trade Facilitation through

Enforcement of and Compliance with Applicable Law to Spur
Economic Growth, Maintain National Security and Public Welfare

DATO’ SRI ABDUL LATIF BIN ABDUL KADIR

Director-general, Customs Malaysia
 PORT KLANG AUTHORITY

Established under Port Authorities Act 1963

Act 488 (Revised 1992) MINISTRY OF TRANSPORT
MALAYSIA
Under the preview of Ministry of Transport.

Vision : Port Klang as the National Load Centre Whilst Developing it as the
Preferred Logistics Hub for The Asian Region.

Mission : As Malaysia’s Premier Port, Port Klang will: SUBSIDIARY PORT OPERATORS ASSOCIATES COMPANIES

- Provide the highest standards of cargo safety, security and

workforce whilst ensuring a safe haven for ships.
- Provide cost-effective services through port performance of
international standards.
- Provide a conducive commercial environment for traders to have a competitive edge in the world market.
- To ensure supply-driven and environmentally sustainable port infrastructure facilities and services.

CAPT. K. SUBRAMANIAM
General Manager, Port Klang Authority
 CUSTOMS ROLE & FUNCTIONS

• The Royal Malaysian Customs is responsible for the implementation of the following acts
and their regulations:
Customs Act 1967 Excise Act 1976 Sales Tax Act 2018
Service Tax Act 2018 Free Zone Act 1990 Goods Vehicle Levy Act 1983

• Responsible to enforce the requirements of 25 other government agencies.

• The Department of Environment Quality is responsible for the issuance of permits for the
import of toxic chemicals & Hazardous waste.
 PORT KLANG AUTHORITY ROLE & FUNCTIONS

The core functions of the Authority under the reshaped role are as follows:
Regulatory (Free Zone Authority, Port Security & Fire Services, Navigational Safety, Issuance of License, Oversight of
Performance Standards, Safety & Environmental Issues)

Port Planning
Asset Management
Trade Facilitation
 INSTITUTION & LEGAL FRAMEWORK

CUSTOMS ACT 1967
To co-ordinating legal provisions with other
laws dealing with the foreign exchange,
PORTS (PRIVATIZATION) ACT 1990
exercising customs control on the
commercial international exchange,
assessing and collecting customs duties
and taxes in the part calculated at the
State's border (VAT, excise) and fighting
against smuggling activity and
counteracting customs fraud.
PORT AUTHORITY ACT 1963 FREE ZONE ACT 1990
Free Zone under the provisions of Section (1B) (a) of
the Customs Act (Amendment) 2019, means any
area in Malaysia excluded principal customs area
The function and duties of a port authority regarding
(PCA), Labuan, Langkawi, Tioman and Pangkor
marine safety and environmental protection and the
which has been declared by the Minister to be a free
Act makes provision for the establishment of the Port
commercial zone or a free industrial zone. Minister
Authority and for its functions and powers, that in charge of finance may appoint any
management and staff, etc. government agency or private entity to be the Free
Zone Authority as stipulated in Section 3, Free Zones
Act 1990.

• All goods which require permits are alerted in the Customs Information
System(CIS) based on HS codes.
• Release of these goods are effected only if the permits are in order (e-Permits). • 85% of goods are released based on declaration of importer.
• Permits are issued by DOE as mandated under S.34B(1)(b)&(c) of the • 10% of goods are released based on additional
Enviromental Quality Act,1974. documentation.
• The Customs (Prohibition of Import) Order 2017 and The Customs (Prohibition of • 5% of goods are released after inspection.
Export) Order 2017 provide the legal backing for Customs.
CUSTOMS & PORT AUTHORITY TODAY
 CHALLENGES

Functions : To regulate and control Functions : To facilitate and ease

trade trade

KEY SUCCESS FACTORS

• To find the equilibrium to promote and facilitate trade.

• To implement defined roles and functions.

• To cascade information within and between organisations.

• Digitalisation towards seamless connection.

• To cooperate and collaborate in carrying out respective duties and functions.

 COOPERATION & COLLABORATION
Dialogues/ Discussions/ Meetings/Cooperation/
Committee/ Joint Ventures
• National Logistics Task Force meeting, chaired by
Minister of Transport Malaysia.
• Public Private meeting, chaired by Director-General
Customs and co-chaired by industry representative.
• Engagement Session between PKA One Stop Centre and
Royal Malaysian Customs Department.
• Port Consultative & Operations Committee Meeting.
• Technical Working Group Meeting on Container
Operations.
• Technical Working Group Meeting on Installation of
Customs Scanners at Central Zone.
• Customs HQ / Private entities Meetings.
• Technical Committee Meeting Free Zone & Customs.
• Revenue Leakage Meeting (Central Zone Level).
Best Practice / Standard Operating Procedures /
Work Order
• DMP6 “Daftar Muatan Pindah Kapal 6” together
with NPT on ITT movement.
• Online approval by RMCD via “Government Agency
Manual Release Module” in ETP due to updating
actual container number / vessel’s name / SCN /
info on missing GCS message / changing Station
Code (B10 to B18) and online releasing for
respective manual transactions – ATA Carnet /
redelivery / K8 approval for critical cargoes and
Part-Of Declaration.
• In process of developing SOP “Detention /
Inspection / Release / Container by Enforcement
Agency / Other Government Agency (OGA) / Port
Authority at Port Klang”
ROYAL MALAYSIAN CUSTOMS DEPARTMENT & PORT KLANG AUTHORITY
WORKING TOGETHER TOWARDS MALAYSIA’S ECONOMIC
PROSPERITY

WE ARE ON THE RIGHT TRACK

THANK YOU