(1) Implementation of the uCustoms System (2) Revision in Principal Hub Incentive (3) FMM Seminar on Customs Facilities & uCustoms: Facilitating Import and Export Clearance

1) Implementation of the uCustoms System

The Royal Malaysian Customs Department will replace the 21-year-old Customs Information System (SMK) with a comprehensive and sustainable online electronic system called the 'Ubiquitous Customs' (uCustoms).
uCustoms will modernise the Customs information system in three areas namely import, export and control of free zones. It would allow trade transaction and facilitation to be accessed any time via a single access portal through the internet. The new system is expected to enhance efficiency in Customs service and trade facilitation to be on par with international standards. Overview of uCustoms system:

• Replaces existing Customs Information System (SMK) and National Single Window (NSW) system;
• Web based system integrating all players including importers, exporters, forwarding and shipping agents, port authorities, banks and insurance companies, other government agencies (OGA), shipping lines etc. with Customs Department;
• Covers 54 modules including Customs clearance, import and export permits, certificate of origin, Customs duty payment etc;
• No fees will be levied on users of the uCustoms system;
• Companies can go direct or utilise forwarding agents to clear shipments;
• Non-intrusive system with minimum Customs and OGA intervention as inspections and verification will be carried out through planned inspections and post clearance audits; and
• Supports digital certificates.

uCustoms which was expected to be implemented in 2015 has been postponed to 2018. The revised timeline for implementation of the uCustoms system is as follows:

Release	Scope	Implementation Date
Release 1	Registration of users and Broker Affairs (Westport)	17 March 2017
Release 2	• Sea Mode – End to End Clearance for Normal Import/ Export (selected traders, selected locations) • Risk Management systems	15 July 2017
Release 3	• Pilot Sea Mode – End to End Clearance Import/Export for All Scenarios, All Traders and Selected Locations (North Port, South Port, Westport) and Pilot Air Mode (KLIA, KLIA2, Penang and Subang) • Risk Management System	30 October 2017
Release 4	• Pilot end to end clearance (all scenarios and all modes) • Acceptance Post Clearance (Enforcement, Legal Affairs) Scenarios • Post Clearance Audit: End to End	31 March 2018
Release 5	• End to end Clearance Sea, Air and Land Mode • Post Clearance: Audit, Enforcement and Legal Affairs • Permit Module for 28 agencies on NSW • myCOO	30 June 2018

2. Revision in Principal Hub Incentive

The Principal Hub Incentive was introduced in April 2015 to replace Operational Headquarters (OHQ), International Procurement Centres (IPC) and Regional Distribution Centres (RDC). The guidelines for the Principal Hub incentive has recently been revamped providing greater clarity especially for existing companies and approved OHQ/IPC/RDC. The revised guidelines were recently issued by the Malaysian Investment Development Authority (MIDA) took effect from July 7, 2017.

A Principal Hub is a company incorporated in Malaysia (with minimum paid-up capital of RM2.5 million) that uses Malaysia for conducting its regional and global businesses and operations to manage, control and support its key functions, including management of risks, decision making, strategic business activities, trading, finance, management and human resources.

In addition to a reduced corporate tax rate, manufacturers with Principal Hub status also enjoy Customs duty exemption to bring in raw materials, components or finished products into free industrial zones, LMW, free commercial zones and bonded warehouses for production or re-packaging, cargo consolidation and integration before distribution to its final consumers.

3. FMM Seminar on Customs Facilities & uCustoms: Facilitating Import and Export Clearance

Learn more about the uCustoms and its impact on manufacturers as well as the benefits of the Principal Hub at the FMM Seminar on Customs Facilities & uCustoms: Facilitating Import and Export Clearance on Wednesday, October 25, 2017 at Sheraton Imperial Hotel, Kuala Lumpur. The Royal Malaysian Customs Department offers over 35 Customs facilities to facilitate import and export clearance and payment of duties. The Seminar will focus on facilities particularly relevant to manufacturers. The Seminar is HRDF Claimable under the SBL Scheme. Registration details of the seminar are attached for your information.

For enquiries, please contact Ms Nur Hafizah Sulaiman of the FMM Secretariat (Tel: 03-62867354 or Fax: 03-62741266/7288 or E-mail: [email protected]).