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KUALA LUMPUR – The second series of the Auditor-General’s 2021 Report released today disclosed that the Royal Malaysian Customs Department failed to collect vehicle import duty on duty-free islands totalling RM72.32 million in 2021.
The report said the weaknesses in duty collection were due to inaccurate and incomplete documentation on residency status upon declaration as well as calculation errors by the assessment officer.
“To ensure full compliance, it is suggested that the Royal Malaysian Customs Department make improvements and take measures such as revising the terms and conditions of vehicle purchase on duty-free islands.
“The technical services department and the heads of department must ensure that the issued guidelines are followed, especially in the assessment process, while the customs division must conduct audits after the release of imported goods,” the report said.
The report also recommended that the heads of department ensure that officials perform their duties in accordance with the applicable regulations to ensure that customs duties are paid correctly.
“In addition, the relevant regulations should be improved to ensure uniformity in carrying out assessments on pre-assembled motor vehicles brought out of the duty-free islands to the main customs area to prevent revenue leakages,” said the report. – Bernama, February 16, 2023
