Malaysia's New Customs System Delayed
The implementation of Malaysia’s new customs declaration system, which was expected to be introduced in early 2019, has been delayed, according to a March 25 report from Baker McKenzie. Malaysia began a pilot version of the new system on March 5, the report said, which covers most imports and exports through Port Klang. While it is unclear when the new Ubiquitous Customs system will fully replace the current Sistem Maklumat Kastam, the report said the “scope of the implementation is (being) gradually expanded.”
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The report describes the new system, uCustoms, as a “fully integrated, end-to-end system” where all customs-related applications and declarations will be processed. Under the current system, certain import and export procedures, such as procurement of permits and applications for certificates of origin, are processed by a third-party provider, according to the report. uCustoms, however, will serve as a one-stop window for customs procedures, the report said, processing applications for import and export permits, certificates of origin and payments of duties and taxes. The new system will “ensure shorter clearance time” and lead to “higher efficiency,” it said.
Along with uCustoms, Malaysia will also introduce four “designated Strategic Centres” to help target “high-risk vessels,” handle clearance for “low-risk declarations” and serve as a helpdesk for uCustoms users, the report said. The fourth strategic center, the Customs Examination Area, will establish a “complex for cargo clearance inspections” at all entrances and exits managed by the country’s “Special Inter Agency Taskforce.”
uCustoms will also “operate 24/7,” be “free-of-charge” and can be accessed by “all importers and exporters,” the report said. Businesses will be able to track their goods as they move through Customs, according to the report, which will “enhance transparency … and reduce the risk of fraud and corruption.” Once it is “fully implemented,” the report said, uCustoms will be linked to the ASEAN single window, the customs declaration system that connects the Association of Southeast Asian Nations.