FUNCTIONS OF TECHNICAL SERVICES DEPARTMENT
1.0 REVENUE ACCOUNTING BRANCH
- To ensure revenue collected is properly and accurately accounted for.
- To monitor and analyse effectively revenue collection and prepare revenue forecasting.
- To ensure accounts receivables are properly managed.
- To ensure all refund / drawback claims and subsidy payments being made in accordance with legislations and regulations.
- To ensure that the process of write-off of bad debts is correctly and properly implemented.
This branch is headed by a Deputy Director of Customs (Grade W54) comprising 5 units as follows:-
- Revenue and Economic Analysis Unit
- Collection Unit
- Accounts Receivable Unit
- Claims Unit
- Write Off Unit
1.3 FUNCTION OF EACH UNITS IN REVENUE ACCOUNTING BRANCH
i) Revenue and Economic Analyst Unit
- To monitor and analyse the performance of customs revenue collection on a continuous basis.
- Trend analysis customs revenue collection.
- Customs Revenue forecasting
- Foster mutual cooperation in defining national indirect tax policy
- To setup Technical Services Division ICT Supporting Tools.
ii) Collection Unit
- To ensure revenue reports are delivered to the relevant agencies on a monthly basis.
- To ensure laws, regulations and orders are reviewed and updated accordingly.
- To ensure applications on new Federal and Department Codes are reviewed and processed.
iii) Accounts Receivable Unit
- To monitor and manage the status of the department’s accounts receivables.
- To provide stakeholders with information on the status of the department’s accounts receivables.
- To carry out analysis and generate reports regarding the amount in arrears to the department on a regular basis.
- To manage and administer black listed taxpayers and keeping it updated regularly and systematically.
iv) Claims Unit
- To obtain sufficient annual allocation of funds from the Treasury for the payment of refund/drawback/petroleum subsidy claims.
- To distribute the allocated funds to State Customs based on actual requirement and monitor the usage.
- To process appeals on refund/drawback claims that have been rejected by State Customs.
- To prepare report/recommendations required by the Treasury relating to refund/drawback appeals.
- To provide consultations and answer public enquiries on matters relating to refund/drawback applications and appeals.
- Make payments on:
- Petroleum product subsidy claims.
- Sales tax reimbursement claims on petrol purchases by Foreign Missions/Embassies and Rulers.
- Refund/drawback claims by companies with AEO (Authorised Economic Operator) status.
- Recoupment required by State Customs to refund returning visitors/tourists on tax collected at the various entry points.
- To reconcile approved subsidy claims against advance payments made out by the Treasury to oil companies.
- To monitor the processing of refund/drawback/subsidy claims at State Customs.
v) Write Off Unit
- To process the application for write off in order for it to be forwarded to the Director General of Customs and Treasury.
- To review, evaluate and revise the procedures for write off from time to time.
2.0 VALUATION MANAGEMENT BRANCH
This branch is headed by a Deputy Director of Customs (Grade W54) comprising 3 sections as follows :-
- Import/Export Goods Market Research and Valuation Section
- Local Goods Market Research and Valuation Section
- Valuation Appeals and Research Section
- To ensure WTO Customs Valuation Agreement is successfully implemented.
- To ensure that the customs value of import, export and local goods being determined properly and accurately according to Customs Act 1967, Excise Act 1967 and Sales Tax Act 1972.
- To determine the level of voluntary compliance among the importers and ensure compliance with provisions of legislations and regulations relating to customs valuation
- To enhance the understanding and knowledge of Customs Officers regarding customs valuation.
- to ensure uniformity in valuation of goods by providing accurate guidelines
- To update all related laws, regulations and orders related to customs valuation.
2.3 FUNCTIONS OF EACH SECTION IN VALUATION MANAGEMENT BRANCH
i. Import/Export Goods Market Research and Valuation Section
- To plan and execute necessary actions in order to fulfil the commitments on customs valuation rules and guidelines as stipulated by World Trade Organization (WTO) and World Customs Organization (WCO).
- To issue guidelines, administrative circulars and standing orders to the State Customs to enhance technical knowledge and to ensure uniformity in customs.
- To provide sufficient data for determination of customs value by Assessment Officers.
- To establish smart partnership between Customs and local industries.
- To carry out panel meetings on new/used CBU cars.
- To analyse and make recommendations to the valuation cases issued by the Enforcement Division.
- To carry out customs valuation inspections at state customs offices and ensure that the guidelines and proceduresrelated to valuation of imported goods are being effectively applied.
ii. Local Goods Market Research and Valuation Section
- To obtain information on costing and selling price for determining the sales value and excise value of local goods by conducting market survey in manufacturing premises.
- To conduct inspection and briefing to the states regarding the adoption and compliance of Sales Tax (Rules of Valuation) Regulations 2002.
- To prepare, update and disseminate circulars on valuation as a guide or references to the stations.
- To train potential officers to be the subject matter experts (SME) in valuation in order to solve valuation technical issues regarding local manufactured goods.
- To process and determine the Excise Open Market Value on application by manufacturers / franchise holders of vehicles subject to the Excise Act 1976.
- To process, prepare and gazette the Customs Orders (Values) Palm Oil, Customs Orders (Values) Palm Kernel Oil and Customs Export Value on Petroleum Crude Oil to be disseminated to the stations.
- To prepare weekly Foreign Exchange Rate and disseminate to the stations.
iii. Valuation Analysis and Appeals Section
- To analyse disputable and appeal cases by importers, local manufacturers and customs stations in order achieve a valuation decision.
- To analyse disputable and appeal cases by importers, local manufacturers and customs stations for the judgement of Customs Appeal Tribunal.
- To analyse and make recommendations to the Director General of Customs on cases issued by Company Audit Section and Post Clearance Audit Section.
- To analyse and make recommendations to the Director General of Customs on pay under protest applications by importers/ manufacturers.
- To analyse application on valuation for Customs Ruling.
- To analyse and make decision on valuation appeals by individual owner of imported / locally assembled used motor vehicles.
- To make necessary documentation with regard to preparation of affidavit for valuation cases tabled at the Customs Appeal Tribunal and courts.
- To analyse transfer pricing cases with regard to customs valuation.
3.0 CLASSIFICATION, TARIFF AND DRAFTING BRANCH
- To ensure prompt and accurate classifications of goods.
- To enhance the understanding and knowledge of officers regarding classification, tariff and drafting.
- To ensure uniformity in classification of goods by providing accurate guidelines
- To update all related laws, regulations and orders administered by the Department.
- This branch is headed by a Deputy Director of Customs (Grade W54) and comprising 3 units as follows:-
- Tariff and Drafting Unit
- Classification Unit
- Customs Ruling Unit
3.3 FUNCTIONS OF EACH UNIT IN CLASSIFICATION, TARIFF AND DRAFTING BRANCH
- Tariff and Drafting Unit
- To process proposed amendments and to update all related laws administered by the Royal Malaysian Customs (RMC) for gazette purposes and to classify goods inline with the Harmonised System.
- To enact new provisions and amendments to the existing laws administered by the Royal Malaysian Customs (RMC) and make available such new provisions and amendments to all customs offices nationwide so as to ensure efficient and effective implementation.
- To carry out discussions / meetings from time to time with Ministry of Finance, Ministry of International Trade and Industry, Attorney General Chambers and other related government agencies on drafting of new laws and relevant amendments.
- To review and prepare draft on National Budget related to indirect taxes
- To update database of Customs Information System (CIS) inline with the gazetted amendments and to ensure updating of CIS Control Data Module.
- Classification Unit
- To ensure the classifications of goods is in accordance with the WCO Harmonised System and to determine the customs tariff code under The Customs Duties Order 2007 and ASEAN Harmonised Tariff Nomenclature 2007.
- To answer inquiries (in person, via telephone or emails) on matters relating to the classifications of goods from the State Customs and the public.
- To issue guidelines, administrative circulars and standing orders to the State Customs to enhance technical knowledge and to ensure uniformity in classifications of goods.
- To plan and execute necessary actions in order to fulfill the commitments on classification rules and guidelines as stipulated by WCO.
- To be the source of reference for all the classification officers.
- To participate in international forums, workshops and meetings involving issues pertaining to Harmonised System and classification of goods.
iii) Customs Ruling Unit
This unit acts as the secretariat for customs ruling administering applications on customs ruling under section 10B of Customs Act 1967, Section 11B of Sales Tax Act 1972, Section 5B of Excise Act 1976 for the following matters:
a) Classification of goods
b) Valuation Advice
c) Determination of taxable person
d) Determination of taxable services
4.0 CUSTOMS VERIFICATION INITIATIVE (CVI) BRANCH
- Royal Malaysian Customs Department (RMCD) has made various efforts to modernise the Customs procedures to meet the requirements of the Revised Kyoto Convention. Subsequently, at the end of year 2007 RMCD had established a task force known as Customs Verification Initiative (CVI) Unit and on July 2009, CVI Branch was officially established under the Technical Services Division in Customs Headquarters.
- CVI Branch is headed by a Senior Assistant Director of Customs (Grade W52) and supported by 8 Officers who are responsible to identify and assess risk in the release of customs form C1, C2, C8 and C9 via CIS (Customs Information System) Selectivity Module with the application of Risk Management concept.
- To assist and expedite the clearance of goods from customs control by adopting risk management approach in identifying and ascertaining high risk consignment in line with the requirement of the Revised Kyoto Convention and WCO SAFE Frameworks of Standard.
- To assist and increase the compliance level of the importers, exporters and traders towards adhering to customs laws and trade regulations without jeopardising the RMCD delivery system
- To collect and scrutinise data from internal and external sources to identify risk indicators in the movement and release of goods from customs control.
- To analyse data and information gathered in identifying risk factors and risk criteria in the movement of goods and commercial motor vehicles across the border.
- To assess and identify risk according to all district and geographical areas via all customs entry points.
- To develop and maintain risk profiles using the CIS Module to select, and rate each electronic Customs declarations (Cusdec) automatically for inspection before the release of goods by the frontline officers.