Sistem Maklumat Kastam ("SMK") is the current operating system for customs declaration for import and export of goods. In a modernising initiative, the Royal Malaysian Customs Department ("Customs") is seeking to replace the SMK with the Ubiquitous Customs system, otherwise known as the U-Customs: a single-window, fully integrated, end-to-end system for customs clearance procedures.
The U-customs has been in the works for a number of years and as it progresses towards completion, we are pleased to provide an update on the status of the U-customs and what businesses can expect of it.
SMK and the Promise of U-Customs
1. Integrated End-to-end Solution for Customs Clearance
Currently, the SMK processes customs declarations, but it is not a fully automated nor fully integrated system. Whilst customs declaration are made through the SMK, other import and export related procedures such as the procurement of import or export permits from Permit Issuance Agencies and applications for certificates of origin are not integrated within SMK. Instead, some of these functions are outsourced to DagangNet, a third-party service provider which is operated independently of SMK.
The U-Customs system seeks to provide a comprehensive platform to cover end-to-end customs-related processes, where all customs-related applications and declarations are processed under one single system to ensure shorter clearance time, higher efficiency, simpler and more consistent procedures for import and export transactions. It is anticipated that applications for import and export permits, Strategic Trade Act-related permits, customs facilities, certificates of origin, and payment of duties and taxes will be done through the U-Customs platform as a single-window once fully implemented.
Focus on User-Friendliness and Transparency
A key driver in the creation of the U-Customs was to enhance the user-friendliness of the system. To this end, the U-Customs system will have the following features:
it will operate 24/7;
it will be offered free-of-charge;
it will be easily accessible from a variety of devices as a web-based programme; and
it will be accessible by all players who are involved in the import and export clearance process. Businesses can register as users on U-Customs and be able to track the movement of goods through customs at every step, from the arrival of the goods at customs control (including the submission of manifest by the vessel operator and customs declaration) to the payment of the applicable duties and taxes and removal of the goods from customs control.
In view of the above, the U-Customs is expected to enhance transparency in the customs processes and reduce the risk of fraud and corruption taking place as a result.
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