Demerit system from April 1 for customs agents

The Royal Malaysian Customs Department will introduce Demerit Points System starting 1st April to all its shipping agents.

Deputy Finance Minister II, Datuk Johari Abdul Ghani said the system allows Customs to deal with the issue of tax leakage and lowering the customs value.

"With this system, we will be able to improve our ability to control the tax leaking that occurs in our economy.

"If we can streamline the system, the government gets to create an efficient tax system thus creating healthy competition among industry players in the long term," he told reporters in a press conference after opening the New Policy for Customs Agent 2016 seminar here today.

Customs Director General Datuk Seri Khazali Ahmad said, at this point the agent who committed the offense will only be compounded.

"The most frequent error is an error pledging or using the wrong code. Let’s say, for some goods supposedly taxable but he (the agent) declare the goods are not taxable.

"If the (tax) RM1, she (the agent) pledge 50 sen or 20 sen ... this (demerit system) should be done so that we (Customs) could collect taxes properly," he said.

Khazali said, the Customs agents who make mistakes and achieve certain prescribed demerit points will be suspended or revoked license.

Hence, he said the performance of agents will be evaluated in a more systematic and to facilitate customs agents to determine the level of compliance with legislation and policies that have been set.

Before this, Customes had taken action to suspend about 70 licenses for its agents and shippers.

The seminar was attended by agents and shipping lines from Selangor, Kuala Lumpur, Kuala Lumpur International Airport, Melaka and Negeri Sembilan.