Shift towards a Self-Assessment System
To administer customs clearance and assessment through U-Customs, four designated Strategic Centres will be established, each with their own specific mandates; namely:
National Targeting Centre (NTC) which will handle risk management, profiling and targeting of high-risk vessels, cargo and passengers;
National Clearance Centre (NCC) which will handle the clearance and assessment for low-risk declarations, as well as process medium and high-risk declarations;
Customs Examination Area (CEA) which is a complex for cargo clearance inspections at all entrances and exits managed by the Special Inter-Agency Taskforce; and
Customs Call Centre (CCC) which will operate as a helpdesk and provide support to U-Customs users and the business community.
We understand that the above Strategic Centres will be located in the Customs headquarters and only limited Customs officers will be based at the state ports, save for CEA officers who conduct physical inspections of cargos. As most customs clearances are processed and assessed electronically through the headquarters without physical inspection by Customs at the borders, there will be a shift towards a self-assessment system whereby Customs will process declarations made by importers and exporters primarily based on documentary evidence provided to ensure quicker clearances and potentially focus more on post-importation audits.
U-Customs Implementation Timeline
According to the Mid-Term Review of the 11th Malaysian Plan issued 2018, the U-Customs was targeted to be fully implemented in mid of 2019. Given the complexity of the system, however, the full implementation of the U-Customs has been dogged by delays. Having said that, the pilot implementation of U-Customs has already begun and the scope of the implementation is gradually expanded.
Effective from 5 March 2019, U-customs declaration for imports and exports through Port Klang are expected to be submitted through U-Customs unless they fall within certain exceptions, such as cargos less than a container load (LCL), goods subject to preferential tariff rate or duty and/or tax exemptions, or goods subject to import and export permit or licence.
Customs has also called on businesses to register on the U-Customs and actively provide pieces of training to educate businesses on the implementation of the U-Customs to prepare businesses for the full rollout.
Conclusion
The introduction of the U-Customs system is much welcomed as its benefits are potentially extensive and are touted to include consistent and streamlined procedures, user-friendly system, cost and time savings on cross-border movement of goods, and increased transparency. On a macro scale, it will improve the ease of doing business in Malaysia, and its competitiveness and attractiveness as a trading hub.
As Malaysia's national single window, the U-Customs will eventually, once fully implemented, be linked to the ASEAN single window which is envisaged to integrate the national windows of all ASEAN countries with an aim to further ease and smoothen customs processes for imports and exports within ASEAN, in fulfilment of the ASEAN Economic Community initiatives.
Comments