THE Customs Department will stop issuing licences to import cigarettes, starting January 1.

Director-general of Customs Abdul Latif Abdul Kadir said existing import licences were still renewable, but with more conditions.

“The additional conditions for importing the minimum quantity of cigarettes that have been set within 12 months must be adhered to,” he said in a statement today.

He said also starting next year, all transshipment of tobacco products, electronic and non-electronic smoking devices, including vape and nicotine-free liquids/gels for electronic cigarettes, were allowed to dock only at five ports.

The ports are West and North Port in Port Klang, Selangor; Tanjung Pelepas Port, Johor; Sandakan Port, Sabah and Senari Port, Sarawak.

“ISO containers must be used for transshipment activities and they must be full container loa shipments as break bulk activities are not allowed,” he said.

Latif said transit for overland exports was allowed, provided they were imported through the five ports, travel from the transshipment port has been set directly to the final destination abroad, and they comply with the provisions of the Customs Act 1967, Customs Regulations 2019 as well as department policies which are in force.

He said starting next year, transshipment of cigarettes and re-export of cigarettes, tobacco products, electronic and non-electronic cigarette devices cigarettes by small boats would be disallowed.

He said the imposition of tax on cigarettes with drawback facilities for re-export would only be allowed in the Free Zones (ZB), subject to conditions.

He said in accordance with Section 93, Customs Act 1967, re-export should be made within three months of the date duties were paid, while return claims were to be be within three months of the re-export date.

Latif said tobacco products would be taxed starting January 1 on all duty free islands (PBC), namely Langkawi, Labuan, Tioman and Pangkor, and the free zones for retail business.

“Duty exemption for cigarettes and tobacco products for visitors and tourists will no longer apply from Janurary 1, 2021.”

The free commercial zones under the Free Zones Act 1990 are located in Stulang Laut, Johor; Rantau Panjang and Pengkalan Kubor in Kelantan and Bukit Kayu Hitam, Kedah.

Latif said remaining cigarettes and tobacco products that had been imported into the PBC and ZB before January could be stored, owned, sold and disposed of in the same PBC and ZB.

He said the remaining cigarettes labelled with red tax stamps and duty-unpaid tobacco products that are to be taken out to the Customs Main Area should be settled before January 1.

In addition, starting April 1, duty and tax would be imposed on cigarettes and tobacco products imported from abroad or purchased from the duty free shops when they pass through Customs.

He said those measures were in line with Budget 2021 strategies to improve revenue collection and address smuggling, especially for high duty goods. – Bernama, December 30, 2020.