Case Study: Customs Operational Movement Compliance (Temp. Import and Re-exportation)
Background:
This case study focuses on the Customs Operational Movement of goods under the procedures established for exporting, repairing, and re-importing goods. The assessment aimed to ensure the correct application of exemptions, clarify the movement of goods, and correct discrepancies in customs declarations. The primary objective was to align the customs documentation with the appropriate operational flow and exemption clauses.
Problem Identification:
Misapplication of Exemption Clauses
Initially, exemption clauses Butiran 46 and Butiran 36 were suggested for customs duties and sales tax exemptions based on the assumption that the goods were temporarily exported for repair. However, further examination revealed that these exemptions were not applicable to the specific scenario.
Incorrect Declaration Forms
The goods were exported using a Normal Export (K2) declaration. For the re-importation phase, a Temporary Import (K1) declaration are utilized to move the goods from outside.
Solution:
The correct customs operational flow for goods imported for repair and subsequently re-exported is as follows:
Movement 1: Goods are initially exported using a Normal Export (K2) declaration, indicating that the export cycle is complete.
Movement 2: The goods are temporarily imported using a Temporary Import (K1) declaration, which qualifies for temporary exemptions as per Butiran 38, Perintah Duti Kastam (Pengecualian), and Butiran 34, Jadual A, Perintah Cukai Jualan (Orang Yang Dikecualikan Daripada Pembayaran Cukai).
Movement 3: The goods are re-exported using a Re-Export (K2) declaration, completing the temporary import cycle.
Results:
The goods in this case should have been processed under Butiran 38 and Butiran 34, as they were imported for repair and subsequently re-exported. It was confirmed that the goods fell under HS Code 8807, which does not attract import duty or sales tax. The case was successfully resolved through the identification of the correct procedures and documentation.
Recommendation:
To prevent similar issues in future transactions, it is recommended that a Bank Guarantee (BG) be prepared for all future temporary import and re-export movements to cover any potential duty liabilities. This measure will ensure compliance and facilitate smoother customs operations.