No new import licenses and duty free cigars as of Friday



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Gone are the days of duty-free cigarette outlets, even in tax-free islands and free zones. (Facebook photo)

PUTRAJAYA: No new cigarette import licenses will be issued as of January 1, Customs Director General Abdul Latif Abdul Kadir said.

However, he said existing import licenses could still be renewed by the Customs Department, with stricter conditions.

Nor will any more cigarettes be sold duty-free in islands or free zones.

“To reinforce the renewal of the cigarette import license, the additional conditions to import the minimum quantity of cigarettes that have been established within 12 months must be met,” Latif said in a statement today.

He said that as of Friday, all transshipment of cigarettes, tobacco products, electronic and non-electronic cigarette devices, including vapes and nicotine-free liquids / gels used in electronic cigarettes, is only allowed in five ports.

The ports are Westport and Northport in Selangor; Tanjung Pelepas in Johor; Port Sandakan, Sabah and Port Senari, Sarawak.

“ISO containers should be used for transshipment activities and should only be full container load (FCL) shipments, as breakdown activities are not allowed,” he said.

Abdul Latif said that transit activities for export purposes by road are allowed, as long as they are imported through the five ports, the journey from the transshipment port has been established directly to the final destination abroad, and they comply with the provisions. of the 1967 Customs Law, Customs. 2019 regulations as well as current departmental policies.

He said that as of January 1, the transshipment of cigarettes and the re-export of cigarettes, tobacco products, electronic and non-electronic cigarette devices using small cans would be prohibited.

He said that the imposition of taxes on cigarettes with return facilities for re-export will only be allowed in the Free Zone, subject to Customs conditions.

He said re-export must be done within three months from the date the duties are paid, while return claims can be made within three months from the re-export date.

Abdul Latif added that the imposition of taxes on cigarette products in all the duty-free islands, namely Langkawi, Labuan, Tioman and Pangkor and the free zones (retail) will also start on Friday.

“As such, the tax exemption on cigarettes and tobacco products for visitors and tourists will no longer apply as of January 1, 2021,” he said.

Free trade zones included in Article 6A of the Free Zones Act 1990 are Stulang Laut, Johor; Rantau Panjang and Pengkalan Kubor in Kelantan and Bukit Kayu Hitam, Kedah.

Abdul Latif said that the remaining cigarettes and tobacco products that had been imported into the duty-free islands and free zones before January 1, 2021 could be stored, possessed, sold and disposed of in the same areas.

He said that the remaining cigarettes labeled with red tax stamps and untaxed tobacco products that will be taken to the Main Customs Area (KUK) must be cleared before January 1, 2021.

In addition, he said, starting April 1, 2021, duties and taxes will be imposed on cigarettes and tobacco products imported from abroad or bought in duty-free stores via all modes of transport when the products are brought into the KUK. .

These measures are in line with the 2021 budget as part of strategies to improve revenue collection and tackle smuggling activities, especially for high-tax products.

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