Billion ringgit freight fraud
Customs: Taxable items smuggled in through falsified papers
Forwarding and shipping agents have hoodwinked the Government of billions in taxes by falsely declaring goods brought into the country via entry points like Klang, Bukit Kayu Hitam and Sibu. In three years, more than RM2.5bil in taxes and duties – RM1.06bil this year alone – has gone uncollected. The Customs Department is cracking the whip, and counter measures include revoking the licences of culprits.
PETALING JAYA: More than RM2.5bil in taxes and duties have been lost over the past three years, largely due to freight forwarders falsifying documents, says the Customs Department.
In most of the cases, shipments containing taxable items were declared to be other products.
This year alone, a total of RM1.06bil has gone uncollected, with goods worth RM731mil smuggled into the country, said Customs director-general Datuk Seri Subromaniam Tholasy.
“The three top smuggling hotspots are Port Klang, Bukit Kayu Hitam and Sibu.
“The main culprits are forwarding agents, shipping agents and freight forwarders. While the number of errant companies is small compared to the total number of companies licensed, their activities are backed by syndicates,” he said.
In 2015, the value of goods seized throughout Malaysia by the department stood at RM416mil, rising to RM447mil last year.
Taxes and duties “lost” totalled RM854mil last year, up from RM635mil in 2015.
Earlier yesterday, Subromaniam told a press conference in Sibu that 20 forwarding agents nationwide may have their licences revoked next year for their alleged involvement in smuggling.
He warned forwarding agents that they could not claim ignorance about the content of containers rented by clients.
“They must bear responsibility. As forwarding agents, they should know who the importers are and what they are bringing into the country.
“They should not just ‘wash their hands of the issue’ and claim they
did not know the items imported in,” he said.
There are more than 3,000 forwarding agents in Malaysia and the issuance of permits by the department has been frozen since 2006.
In Sibu and Sarikei alone, the department foiled attempts to smuggle goods worth RM27mil with a tax value of RM6mil between October and December this year.
The 12 containers seized by the department contained fireworks, cigarettes and beer from China which had been declared as furniture and other goods.
Subromaniam said action would be taken against the three forwarding agents involved in the matter.
“This includes suspending their licence indefinitely and revoking it later if they are convicted under Section 114 of the Customs Act 1967,” he said.
Of the seizure from the two places, eight containers had been confiscated at the Rejang Port Authority in Sibu since October.
“Five of the containers contained 51,192 litres of various well-known brands of beer with value and tax amounting to RM6.52mil.
“Two other containers had 103,650 cartons of various brands of cigarettes with value and tax recorded at RM14.28mil.
“Another container had fireworks, with value and tax amounting to RM265,000,” he added.
In Sarikei, the department seized four containers with similar items worth some RM6.8mil, including tax.
“For the first offence, a person convicted is liable to a fine of not less than 10 times and not more than 20 times the value of the goods or three years’ imprisonment or both.
“For the second and subsequent offence, the penalty is a fine of not less than 20 times and not more than 40 times the value of the goods or a jail sentence of not more than five years or both if convicted,” said Subromaniam.
Forwarding agents must bear responsibility ... they should know who the importers are and what they are bringing into the country. Datuk Seri Subromaniam Tholasy