PUTRAJAYA – No new import licences for cigarettes will be issued by the Royal Malaysian Customs Department effective January 1, 2021, said customs director-general Datuk Seri Abdul Latif Abdul Kadir.
He said that existing import licences could however still be renewed.
Latif said from January 1, all transshipment of cigarettes, tobacco products, electronic and non-electronic cigarette devices, including vape and nicotine-free liquids/gels used in electronic cigarettes are only allowed at five ports.
He said the ports are West and North Port in Port Klang, Selangor; Tanjung Pelepas Port, Johor; Sandakan Port, Sabah, and Senari Port, Sarawak.
“ISO containers must be used for transshipment activities and they must only be full container load shipments as break bulk activities are not allowed,” he said.
Latif said transit activities for export purposes by road are allowed, provided they are imported through the five ports, travel from the transshipment port has been set directly to the final destination abroad, and they comply with the provisions of the Customs Act 1967, Customs Regulations 2019, as well as department policies in force.
He said that from January 1, transshipment of cigarettes and re-export of cigarettes, tobacco products, electronic and non-electronic cigarette devices cigarettes by small boats would be disallowed.
Latif said the imposition of tax on cigarettes with drawback facilities for re-export will only be allowed in the free zones, also subject to the department’s conditions.
He said in accordance with Section 93, Customs Act 1967, re-export should be made within three months from the date of duties payment, while return claims can be made within three months from the re-export date.
Latif added that the imposition of tax on cigarette products at all duty-free islands, namely Langkawi, Labuan, Tioman and Pangkor and the free zones (retail business) will start on January 1.
“As such, duty exemption on cigarettes and tobacco products for visitors and tourists will no longer apply from January 1, 2021,” he said.
The free commercial zones involved under Section 6A, Free Zones Act 1990 are those located in Stulang Laut, Johor; Rantau Panjang and Pengkalan Kubor in Kelantan, and Bukit Kayu Hitam, Kedah.
Latif said the remaining cigarettes and tobacco products imported to the islands and free zones before January 1 could be stored, owned, sold and disposed of in the same areas.
He said the remaining cigarettes labeled with red tax stamps and duty-unpaid tobacco products to be taken out to the customs main area should be settled before January 1.
Latif also said that from April 1 onwards, duties and taxes would be imposed on cigarettes and tobacco products imported from abroad or purchased from duty-free shops through all modes of transportation when products are brought into the customs main area.
These measures are in line with the 2021 budget tabled on November 6, as part of strategies to improve revenue collection and address smuggling activities especially for high duty goods. – Bernama, December 30, 2020
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