Facilities and Tax Incentives Under the Customs Act

INTRODUCTION

Many companies especially importers, exporters and manufacturers are facing problem and issues when dealing with the Royal Malaysian Customs Department (RMCD).  This is mainly due to the lack of knowledge when dealing with the RMCD on the facilities and incentives provided under the Customs Act.

Join our “FACILITIES AND TAX INCENTIVES UNDER THE CUSTOMS ACT” training to discover and update about the facilities and incentives that are available to the business communities to facilitate their operations from our expert in Customs procedures and make your dealing with the RMCD more effective and efficient. This training will also cover the implications of GST on these facilities and incentives.

LEARNING OBJECTIVE 

At the end of this “Facilities and Tax Incentives Under the Customs Act” training, participants will be able to

• Gain an insight into the facilities available under the Customs Act 1967 to obtain tax / duty relief.
• Learn how to effectively make use of these facilities for cost optimization.
• Streamline their businesses activities by making use of these facilities.
• Effectively evaluate the facilities most suitable for their businesses.
• How to overcome cash flow implications on the introduction of GST.

WHO SHOULD ATTEND

This course is suitable for

• Tax Consultants
• Finance Managers
• Accountants
• Logistic Managers
• Those dealing with RMCD
• All manufacturers and traders who desire to obtain import duty / tax exemptions

1. Customs Organisation

2. Licensed Manufacturing Warehouse (LMW)

• Concepts & Objectives for setting up LMWs
• Eligibility criteria & conditions to be complied
• Application for LMW & Documentation
• Location & Type of Premises
• LMW procedures and documentation
• Release to domestic market and duty payment
• Control over premises by customs controlling station
• Farming out / subcontract activities
• Losses by fire, flood & theft
• Procedures as to destruction of waste raw materials and finished goods
• IPC and value added activities in LMW
• GST implications on LMW’s

3. Treasury Exemptions

• Legal provisions – Section 14(2) Customs Act 1967
• Application for Treasury Exemptions
  – Machinery / Equipment – PC1
  – Raw Materials & Components – PC2
• Customs Procedures and Documentation
• Importation pending approval
• Enforcement by customs controlling station
• Disposal of raw materials / machinery
• Procedures as to destruction of waste & scrap
• Subcontract / farming out
• Conditions for Treasury Exemptions
• GST Implications on Treasury Exemptions

4. Refunds

• Refunds of duty overpaid or errorneously paid under Section 16 Customs Act
• Reasons for overpayment
• Conditions for successful refund claim
• Application for refund & documentation

5. Drawback 

• Type of drawback claim & legal provisions
• Drawback under Section 93, 95 and 99 Customs Act
• Conditions to be complied for a successful claim
• Procedures as to drawback claims & documentation
• Problems associated with drawback claims

6. Free Zones 

• Concept of Free Zones
• Types of Free Zones – FIZ and FCZ
• Activities that can be conducted in FIZ and FCZ
• Application to operate inside Free Zones
• Goods allowed inside FIZ and FCZ
• Movement of goods / Transshipment / Transit Procedures
• Documentation Procedures
• Farming out / Subcontract
• Advantages of FCZ to importers/exporters
• GST Implications on movement of goods within and between FIZ / FCZ

7. International Procurement Centre (IPC) 

• Concept of IPC
• Activities that can be conducted under IPC
• Application for IPC status
• Eligibility criteria for IPC
• Incentives for IPC companies
• Conditions of IPC

8. Temporary Import / ATA Carnet

9. Temporary Export

10. Bonded Warehouses 

• Concept of Bonded Warehouses and eligibility criteria
• Different categories of Bonded Warehouses
• Benefits of Bonded Warehouses
• Procedures & Documentation
• SST implications on Licensed Warehouses

• Procedures as to claiming import duty exemptions under CD (E) O 2017 andvarious exemptions under Sales Tax Exemptions Order 2018

13. Customs Facilitation

• Authorized Economic Operators (CGC)
• Export Pre Clearance
• Express Handling Unit
• Import Pre Clearance
• Asean Green Lane Counter
• Direct Release System
• Electronic Fund Transfer

14.Conclusion and Questions & Answers

Nadaraja was formerly with the Royal Malaysia Customs (1981-1997) as a Senior Officer of Customs having served in various units and his key areas of focus includes customs administration, import and export procedures, classification, valuation, licensing and compliance matters. He posses an in depth knowledge of various customs legislation including Customs Act, Sales Tax Act, Service Tax Act, Excise Act and other subsidiary legislation. He has vast experience in Customs matters and has been a guest lecturer at the Royal Malaysian Customs Academy in Malacca on various occasions to deliver lectures on various aspects of Customs laws and procedures.

In 1997 he left the Customs Department on optional retirement for private practice as an Advocate and Solicitor.

He is now involved in legal practice and at the same time is actively involved in conducting seminars and workshops on customs matters. He has also conducted in house training for various companies including statutory bodies and has advised and consulted upon by companies on issues such as customs and sales tax valuation, classification, service tax matters, drawback, refunds, exemptions and others. He was officially appointed by the Customs Department to conduct Basic Customs Course for forwarding agents during the year 2005 – 2007.

He is also an Associate of the Malaysia Institute of Chartered Secretaries & Administrators and Chartered Tax Institute of Malaysia (ACTIM) and is currently involved in customs litigation and rendering of consultancy & advisory services on Customs matters.

Telephone : +603 5523 1819

Mobile : +6016 263 4929

Fax : +603 5523 2827

Email : [email protected]

https://wanfahprosper.com/facilities-and-tax-incentives-under-the-customs-act/