Sarawak Customs Seizes 10 Luxury Vehicles Worth Over RM8.1 Million in Kuching
KUCHING, Sept 14 – The Sarawak Customs Department recently made headlines with a major seizure of 10 luxury vehicles valued at over RM8.1 million in Kuching. The operation, which took place on Sept 2, has highlighted the ongoing efforts to curb tax evasion and smuggling activities in the state.
According to the department’s director, Norizan Yahya, the vehicles were confiscated during a raid on a premises where they were being stored without proper clearance. The high-end cars, from various brands, had bypassed customs regulations, resulting in a significant loss of revenue for the government.
High-Value Seizure: A Closer Look at the Operation
Illegal Storage of Luxury Vehicles
During the raid, Customs officials discovered that the vehicles were being held at an unlicensed premises, a clear violation of Section 65 of the Customs Act 1967. The company involved had been transferring the vehicles to the premises before they were cleared by the department, which raised suspicions about their intent.
“The company’s modus operandi was to move vehicles that had not yet been cleared by the Customs Department to an unlicensed premises or warehouse, an offense under Section 65 of the Customs Act 1967,” Norizan explained.
The vehicles, which were of various luxury brands, were found to be in breach of Section 75(b) of the Customs Act 1967. This section specifically governs the importation and movement of goods without compliance with customs regulations, which in this case, led to the confiscation of the vehicles.
Estimated Value and Duties
The total value of the seized vehicles is estimated at RM3,145,000, with additional duties and taxes amounting to RM4,984,825. The grand total, inclusive of both the value of the vehicles and unpaid taxes, exceeds RM8.1 million.
Norizan stated that these figures represent a significant loss to the government, as the company involved attempted to evade paying the required duties and taxes.
“Inspection results show that the 10 luxury vehicles, of various brands, did not comply with the conditions stipulated under Section 75(b) of the Customs Act 1967,” he said.
The Customs Act 1967: Key Sections Involved
Section 65: Offenses Related to Unlicensed Warehousing
Under Section 65 of the Customs Act 1967, any company or individual that stores goods at an unlicensed premises without prior customs clearance is committing a serious offense. This section is designed to prevent businesses from bypassing customs inspections, which could lead to smuggling or tax evasion.
Section 75(b): Compliance with Import Regulations
Section 75(b) of the same act deals specifically with the compliance of goods with customs regulations. This includes ensuring that all imported items, including vehicles, have been properly declared and that the necessary duties and taxes have been paid. Failure to do so can result in the immediate confiscation of the goods in question.
Section 138: Legal Actions and Penalties
In addition to the above sections, the case is being investigated under Section 138 of the Customs Act 1967, which covers the penalties for evading customs duties and taxes. Companies found guilty under this section can face heavy fines, imprisonment, and the permanent loss of the seized goods.
Norizan emphasized that the investigation is ongoing, and the authorities are working to identify those responsible for the attempted tax evasion.
Ongoing Investigations and Crackdown on Smuggling
This recent seizure is part of a broader effort by Sarawak Customs to crack down on smuggling and tax evasion activities in the state. The department has been actively monitoring high-risk businesses and premises to prevent further losses to the government.
The confiscation of these luxury vehicles serves as a reminder to all businesses that any attempt to evade customs regulations will be met with strict enforcement. Norizan assured the public that Sarawak Customs will continue to work diligently to uphold the law and protect the state’s revenue.
“The case is being investigated under Section 138 and Section 75(b) of the Customs Act 1967,” Norizan added.
Conclusion
The seizure of 10 luxury vehicles worth over RM8.1 million in Kuching highlights the ongoing efforts of the Sarawak Customs Department to enforce compliance with customs regulations. The breach of Sections 65, 75(b), and 138 of the Customs Act 1967 underscores the seriousness of the offense, with the company involved facing significant legal consequences.
As investigations continue, Sarawak Customs remains committed to preventing illegal activities that threaten the state’s economic stability. This operation serves as a clear warning to businesses that customs compliance is not optional, and any violations will result in severe penalties.