RM72.32 million in vehicle import duty not collected by customs, audit report shows

The Auditor-General’s 2021 Series 2 released today disclosed that vehicle import duty on duty-free islands (PCB) totalling RM72.32 million was not collected by customs department in 2021.

The report said the weaknesses in duty collection were due to the declaration form not being supported by complete and correct documentation of residency status as well as calculation errors by the assessment officers.

"To ensure full compliance, it is suggested that the Royal Malaysian Customs Department make improvements and take measures such as revising the terms and conditions of vehicle purchase on PBC.

"The Technical Services Department and the heads of department must ensure that the issued guidelines are followed, especially in the assessment process, while the customs division must conduct audits after the release of imported goods," the report said.

The report also recommended that the heads of department ensure that the officials under their supervision perform their duties in accordance with the applicable regulations to ensure that customs duties are paid correctly.

"In addition, the relevant regulations should be improved to ensure uniformity in carrying out assessments on pre-assembled motor vehicles brought out of the PBC to the main customs area to prevent revenue leakages," it said.