Technical Service Division - About Technical Services

User Rating: / 3
PoorBest 

FUNCTIONS OF TECHNICAL SERVICES DEPARTMENT

1.0     REVENUE ACCOUNTING BRANCH

1.1     OBJECTIVE

• 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. 

1.2     BACKGROUND

This branch is headed by a Deputy Director of Customs (Grade W54) comprising 5 units as follows:-

1. Revenue and Economic Analysis Unit
2. Collection Unit
3. Accounts Receivable Unit 
4. Claims Unit
5. 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.
• Ø  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:

1. Petroleum product subsidy claims.
2. Sales tax reimbursement claims on petrol purchases by Foreign Missions/Embassies and Rulers.
3. Refund/drawback claims by companies with AEO (Authorised Economic Operator) status.
4. Recoupment required by State Customs to refund returning visitors/tourists on tax collected at the various entry points.
5. To reconcile approved subsidy claims against advance payments made out by the Treasury to oil companies.
6. 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 BRANCH

2.1     BACKGROUND

Valuation branch is headed by a Deputy Director of Customs (Grade W54) and it consist of 3 units as follow:-

i) Imports / Exports Market Research and Valuation Unit

ii) Local Market Research and Valuation Unit

iii) Valuation Research and Appeal Unit

2.2     OBJECTIVE

i) To determine the compliance of acts and regulations which consists of Customs (Rules of Valuation) Regulation 1999, Sales Tax (Rules of Valuation Regulation 2002 and other orders pertaining to Customs, Excice and sales Tax valuation issues and problems.

ii) To develop and update information system and mechanism for ensuring the success of Customs Valuation base on WTO agreement through the activities of valuation, compliance and profiling managements.

iii) Attending and participating in international conferences.

2.3     FUNCTIONS

          i) Imports / Exports Market Researches and Valuation Unit

• Conducts market survey in business premises to obtained information of sales value and compiled them as price data.
• Collecting importation and exportation information through the imports/ exports transactions to built companies risk profiling and the adoption of valuation method so as to identified high risk companies for the further actions taken by Post Clearance Audit and CVI Branch.
• Conduct inspection and briefing to the stations regarding the adoption and complaint of Customs (Rules of Valuation) Regulations 1999 and Sales Tax (Rules of Valuation) Regulations 2002.
• Monitoring the implementation of WTO valuation system and standardize customs valuation in all state.
• Collecting information regarding valuation from various sources such as WCO, WTO, ASEAN, Court Judgements, Customs Appeal Tribunal and Customs Attaches and compile as reference for stations.
• Prepared, updated and disseminated circulars on valuation as a guide or references to the stations.
• Arrange Smart Partnership Programme between RMCD and private sectors.
• Conducts panel meeting for reviewing and determining the price of CBU and used vehicles.

ii) Local Market Research and Valuation Unit

• Conducts market survey in manufacturer premises to obtained the costing and selling price for determining the sales value and excise value.
• Collecting importation and exportation information through the imports/ exports transactions to built companies risk profiling and the adoption of valuation method so as to identified high risk companies for the further actions taken by Post Clearance Audit and CVI Branch.
• Conduct inspection and briefing to the stations regarding the adoption and complaint of Customs (Rules of Valuation) Regulations 1999 and Sales Tax (Rules of Valuation) Regulations 2002.
• Prepared, updated and disseminated circulars on valuation as a guide or references to the stations.
• Trained potential officers to be the resource persons and experts in valuation in order to solved valuation tehnical issues regading imported goods and local manufactured goods.
• Processed the application from manufacturers / franchise holders to determined Excise Open Market Value on the vehicles under Excise Act 1976.
• Processed, prepared and gazette Customs (Values) Orders Palm Oil and disseminate to the stations.
• Processed, prepared and gazette Customs (Values) Orders Palm Kernel Oil and disseminate to the stations.
• Prepared weekly Foreign Exchange Rate and disseminated to the stations.

iii) Valuation Research and Appeal Unit

• Carried out researches pertaining to valuation cases disputed and appealed by importers, local manufacturers and local customs stations for the inquiry of opinion and valuation decision.
• Carried out researches pertaining to valuation cases disputed and appealed by importers and local manufacturers in order to forward to Customs Appeal Tribunal for judgment.
• Studies cases reffered by Companies Auditing Branch, Post Clearance Audit Branch and issues pertaining to duties paid under protest by the importers /manufacturers and forward for the decision of Director General of Customs.
• Studies cases referred by Enforcement/Compliance Division for the inquiry of opinion and valuation decision.
• Carried out researches for the purpose of issuing the decision of Customs Advance Ruling.
• Review the appeal made by individual /ambassador to reduce the value of used CBU vehicles.
• Gather documents and prepared affidavit for the cases referred to Customs Appeal Tribunal and Court.
• Studies transfer pricing cases under customs valuation context.

3.0     CLASSIFICATION, TARIFF AND DRAFTING BRANCH

3.1     OBJECTIVES

• 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.

3.2     BACKGROUND

• This branch is headed by a Deputy Director of Customs (Grade W54) and comprising 3 units as follows:-

1. Tariff and Drafting Unit
2. Classification Unit
3. Customs Ruling Unit 

3.3     FUNCTIONS OF EACH UNIT IN CLASSIFICATION, TARIFF AND DRAFTING BRANCH

1. 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. 

1. 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

4.1     BACKGROUND

• 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.

4.2     OBJECTIVE

• 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

4.3     FUNCTIONS

• 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.