Power of Minister to fix the rates of excise duties
Open ↗(1) The Minister may from time to time, by order published in the Gazette, fix excise duties to be levied and paid on—
(a) any goods manufactured in Malaysia; or
(b) any goods imported into Malaysia,
and may prescribe the method according to which such duties shall be levied and paid.
(2) Any order made under subsection (1) shall, at the next meeting of the Dewan Rakyat, be laid on the table of the Dewan Rakyat and shall, at the expiration of one hundred and twenty days from being so laid or of such extended period as the Dewan Rakyat may, by resolution direct, cease to have effect if and in so far as it is not confirmed by a resolution passed by the Dewan Rakyat within the said one hundred and twenty days or, if such period has been extended, within such extended period.
(3) Where an order ceases to have effect in whole or in part as provided by subsection (2), then any duty levied in pursuance of such order or, as the case may be, of such part thereof as ceases to have effect shall, subject to subsection (4), be repayable to the person from whom such duty was levied.
(4) Unless the Minister shall otherwise direct, no duty repayable under subsection (3) shall be repaid unless the person entitled to such repayment makes a claim therefor to the Director General within one year from the day on which the order ceases to have effect in whole or in part as provided by subsection (2).
(5) Any such claim shall be made in writing and shall contain such particulars as the Director General may, by general or special order, require.
(6) Without prejudice to any other remedy, any excise duty payable under this Act may be recovered by the Minister as a civil debt due to the Government.
Value of goods for purposes of duty
Open ↗The Minister may, from time to time, by notification in the Gazette, fix, for the purpose of the levy and payment of excise duty, the value of any dutiable goods.
Assessment of duty
Open ↗(1) The proper officer may, in respect of any dutiable or unexcisable goods—
(a) determine the class of goods to which such dutiable or unexcisable goods belong; and
(b) value, weigh, measure or otherwise examine or cause to be valued, weighed, measured or otherwise examined such dutiable or unexcisable goods,
for the purpose of ascertaining the amount of excise duty leviable thereon.
(2) All necessary operations relating to the weighing, measuring and examination of dutiable goods shall be performed by or at the expense of the owner thereof or his agent:
Provided that the proper officer may at his discretion direct that any such operations shall be performed by persons under his control, and in any case such operations shall be performed at the expense of the owner or his agent.
(3) When a valuation of any goods has been made by the proper officer such valuation shall be presumed to be correct until the contrary is proved.
Payment of excise duty under protest
Open ↗Any person who is dissatisfied with a decision of a proper officer under subsection 8(1) as to whether any particular goods are or are not included in a class of goods appearing in an order made under subsection 6(1) or with the valuation, weighing, measuring or examination of any goods may pay the excise duty levied under protest.
Director General to determine questions on classification and valuation
8 B. Where excise duty has been paid under protest, the proper officer shall, within thirty days of such payment being made, refer any question as to classification or valuation of goods to the Director General for his decision.
Power of the Director General to reassess
Open ↗Whenever the Director General has reason to believe or suspect that the quantity or quality of dutiable goods produced from any given quantity or quality of raw materials or component parts is lesser in quantity or lower in quality than that which ought to have been obtained therefrom, the Director General may reassess the duty payable at such greater quantity or higher quality as he deems proper. Every assessment made by the Director General under this Act shall be deemed to be correct.
Power of Minister to prescribe charges for assessment
Open ↗The Minister may by order prescribe the charges to be paid for operations performed under section 8 by officers of excise or other persons under the control of the proper officer, and may remit any charges due.
Exemption of excise duties
Open ↗(1) The Minister may by order exempt, subject to such conditions as he may deem fit to impose, any class of goods or persons from the payment of the whole or any part of any excise duty or any other prescribed fees or charges which may be payable.
(2) The Minister may in any particular case:
(a) exempt any person from the payment of the whole or any part of the excise duties or any other prescribed fees or charges which may be payable by such person on any goods; or
(b) may direct the refund to any person of the whole or any part of the excise duties or any other prescribed fees or charges which have been paid by such person on any goods,
and in granting such exemption or directing such refund may impose such conditions as he may deem fit.
(3) Any goods in respect of which an exemption from the payment of excise duties has been granted under subsection (1) or (2) shall be deemed to be dutiable goods until the conditions, if any, subject to which the exemption from duty was granted are fulfilled, and shall be liable to all other charges, not being excise duties, to which they would be subject if no such exemption had been granted.
Minister may remit excise duties
Open ↗The Minister may, if he thinks it is just and equitable to do so, and subject to such conditions as he may deem fit to impose, remit the whole or any part of the excise duties or any other prescribed fees or charges payable under this Act.
Re-imposition of duty
Open ↗(1) If any of the conditions subject to which exemption from duty granted under section 11 on any goods on which excise duty has not been paid, have not been complied with, or such goods cease to be kept or used by the person or for the purposes qualifying them for such exemption, such goods shall on non-fulfilment of such conditions or upon such cesser, become liable to the excise duty and the person to whom such exemption was granted and any person found in possession of such goods shall be jointly and severally liable to pay such excise duty.
(2) If any goods, which are liable to excise duty under subsection (1) and on which such duty has not been paid, are found in the possession or on the premises of any person other than the person authorized to possess them under the terms of such exemption, such goods shall, until the contrary is proved, be deemed to be dutiable goods within the meaning of this Act.
Refund of duty or other charges overpaid
Open ↗It shall be lawful for the Director General, if it is proved to his satisfaction that any money has been overpaid or erroneously paid as excise duties or as warehouse rent or as any other charges under this Act, to order the refund of the money so overpaid or erroneously paid:
Provided that—
(a) no such refund shall be allowed unless a claim in respect of the money overpaid or erroneously paid is made in writing to the Director General within one year after the over-payment or erroneous payment was made; or
(b) in the case where any excise duty has been paid under protest under section 8A, no claim for refund shall be allowed unless such claim is made in the prescribed form within one year after the decision on classification or valuation is made known to the claimant.
Remission of duty on goods lost, damaged or destroyed
Open ↗(1) If any dutiable goods are damaged, destroyed or, by unavoidable accident, lost at any time before removal from excise control, the Director General may remit the whole or any part of the excise duty payable thereon.
(2) After removal from excise control no abatement of excise duty shall be allowed on any such goods—
(a) on account of damage; or
(b) on account of any claim that the weight, measure, volume or value as determined by the proper officer for the purpose of ascertaining the excise duty on such goods, is incorrect unless notice in writing of such claim has been given at or before the time of such removal.
Payment of duty short paid or erroneously refunded
Open ↗(1) Whenever—
(a) through inadvertence, negligence, error, collusion, or misconstruction on the part of any officer of excise, or through misstatement as to value, quantity, quality or description by any person, or for any other reason, the whole or any part of any excise duties or other moneys payable under this Act has not been paid; or
(b) the whole or any part of such excise duties or other moneys, after having been paid, has been, owing to any cause, erroneously refunded,
the person liable to pay such excise duties or other moneys, or the deficient excise duties or other moneys, or the person to whom such refund has erroneously been made, as the case may be, shall pay the excise duties or other moneys, or the deficient excise duties or other moneys, or repay the amount paid to him in error on demand being made within three years from the date on which the excise duties or other moneys were payable, or deficient excise duties or other moneys were paid or the refund was made, as the case may be; and without prejudice to any other remedy for the recovery of the amount due any dutiable goods belonging to such person which may be in any distillery, brewery or other place of manufacture licensed under section 20 or in any public excise warehouse or in any licensed warehouse may be detained until the excise duties or other moneys be paid or repaid.
(2) Where any amount is payable in accordance with subsection (1), the Director General may allow the amount to be paid by instalments in such amounts and on such dates as he may determine.
(3) If after a reasonable time has lapsed and the amount due is not paid by such person, after giving not less than thirty days’ notice in writing to such person, the Director General may sell any goods detained under subsection (1).
(4) The proceeds of sale of any such goods shall be applied to the payment of the amount due, and the surplus, if any, shall be paid to such person.
(5) If the sale of such goods is by auction, such auction shall be conducted by or in the presence of a senior officer of excise.
Recovery of excise duty from persons leaving Malaysia
Open ↗(1) Where the Director General has reason to believe that any person is about or is likely to leave Malaysia without paying any excise duty payable by him, he may issue to any Director of Immigration a certificate containing particulars of the excise duty so payable with a request that such person be prevented from leaving Malaysia unless and until he pays the excise duty so payable, or furnishes security to the satisfaction of the Director General for its payment.
(2) Subject to any order issued or made under any written law for the time being in force relating to banishment or immigration, any Director of Immigration who receives a request under subsection (1) in respect of a person shall exercise all measures which may include the removal and the retention of any certificate of identity, passport, exit permit, or other travel documents in relation to that person as may be necessary to give effect to the request.
(3) The Director General shall cause a notice of the issue of a certificate under subsection (1) to be served personally or by registered post on the person to whom the certificate relates:
Provided that the non-receipt of the notice by that person shall not invalidate anything done under this section.
(4) Where the person in respect of whom a certificate has been issued under subsection (1) produces on or after the date of the certificate a written statement signed by the Director General stating that all excise duty specified in the certificate has been paid, or that security has been furnished for its payment, that statement shall be sufficient authority for allowing that person to leave Malaysia.
(5) No legal proceedings shall be instituted or maintained against the Government, a State Government or any other public officer in respect of anything lawfully done under this section.
(6) In this section, “Director of Immigration” means any Director of Immigration appointed under subsection 3(1A) of the Immigration Act 1959-1963 [Act 155].
Rate of excise duty
Open ↗(1) The rate of excise duty applicable to any goods shall be—
(a) in the case of goods manufactured in Malaysia, the rate of excise duty or valuation (if any) in force on the day on which such goods are removed from the distillery, brewery or other place of manufacture, or from the public excise warehouse or licensed warehouse in which they are stored or from any other place under excise control;
(b) in the case of goods lawfully imported—
(i) if such goods (other than petroleum in a licensed warehouse) are warehoused, or if excise duty is paid at a collection station, the rate in force on the day on which the removal of the goods is authorized by the proper officer or, in the case of a collection station, by an officer appointed under the provisions of any law for the time being in force in Singapore relating to the collection of excise duties payable to the Government of Malaysia;
(ii) if such goods consist of petroleum which is in a licensed warehouse, the rate in force on the day on which such petroleum is removed from such warehouse;
(iii) if such goods are imported by post, the rate in force on the day on which duty is assessed by the proper officer; and
(iv) in any other case, the rate in force on the day on which such goods are released by the proper officer; and
(c) in the case of unexcisable goods, the rate in force on the day on which such goods became unexcisable goods, if known, or the rate in force on the day of seizure, whichever is the higher.
(2) For the purpose of calculating the excise duty payable, the valuation applicable to any goods shall be made in the prescribed manner.
Imposition or abolition of excise duty
Open ↗When by virtue of an order made under subsection 6(1) an excise duty is fixed on any goods which previously were not dutiable or any excise duty on goods is abolished, such imposition or abolition of duty shall be deemed to have had effect at the time such goods are removed from the place of manufacture or excise control.
Question in respect of goods deemed to be dutiable
Open ↗If any question arises whether any particular goods are or are not included in a class of goods appearing in an order under subsection 6(1), such question shall be decided by the Director General.
Certificate of Director General admissible in evidence
18 A. Notwithstanding anything contained in any other written law or rule of evidence to the contrary, where in any proceedings a document purporting to be a certificate under the hand of the Director General in respect of a decision made by him under section 8B or 18 is produced, such document shall be admissible in evidence and shall be accepted as sufficient evidence of the facts therein stated and the Director General shall not be required to give evidence in respect of such decision unless the court otherwise orders.
Drawback
Open ↗(1) Where any goods are exported by the manufacturer as part or ingredient of any goods manufactured in Malaysia or as the packing, or part or ingredient of the packing, of such manufactured goods, then if excise duty has been paid on that part or ingredient of such manufactured goods or on the packing or that part or ingredient thereof, the Director General may, on such export, allow to the manufacturer a full drawback of the duty so paid, if—
(a) the finished goods have been manufactured on premises approved by the Director General;
(b) such books and account are kept as the Director General may require for the purpose of ascertaining the quantity of the goods used in such manufacture or for or in the packing of such manufactured goods;
(c) such goods are so exported within twelve months of the date upon which excise duty was paid or such further period as the Director General may approve; and
(d) written notice has been given on the export declaration form that a claim for drawback will be made, and such claim is made in the prescribed form and established to the satisfaction of the senior officer of excise within six months of the date such export or such further period as the Director General may approve.
(2) In this section, the expression “manufacturer” includes any person to whom the manufactured goods have been sold or otherwise disposed of.
Drawback on imported goods
Open ↗(1) When any imported goods, upon which excise duty has been paid, are re-exported, nine-tenths of the duties calculated in accordance with subsection (2) may be repaid as drawback if—
(a) the goods are identified to the satisfaction of a senior officer of excise at the customs port or customs airport at which such goods are shipped or loaded for re-export, or at the place of re-export;
(b) the drawback claimed in respect of any one consignment of re-exported goods is not less than fifty ringgit;
(c) the goods are re-exported within twelve months of the date upon which the excise duty was paid;
(d) payment of drawback upon goods of a class to which the goods to be re-exported belong has not been prohibited by regulations made under this Act;
(e) written notice has been given to a senior officer of excise at or before the time of re-export that a claim for drawback will be made, and such claim is made in the prescribed form and established to the satisfaction of a senior officer of excise within three months of the date of re-export; and
(f) the goods have not been used after importation.
(2) The amount of drawback allowed shall be calculated at the rate of the excise duty levied at the time of import, or at the rate of excise duty leviable on goods of a like description at the time of re-export of the goods, whichever is the lower.
Declaration by claimant
Open ↗Every person claiming drawback on any goods re-exported shall, personally or by his agent, make to a senior officer of excise a declaration in duplicate, substantially in the prescribed form, that such goods have actually been re-exported and have not been relanded or detrained and are not intended to be relanded or detrained at any customs port, customs airport or place in Malaysia or within any port of Malaysia, where goods of a like description are liable to excise duty.
Definition of “re-export” in sections 19A and 19B
Open ↗For the purposes of sections 19 A and 19B, the expression “re-export” includes the movement of goods to a warehouse licensed under section 65A of the Customs Act 1967 and to a duty free shop licensed under section 65D of the Customs Act 1967.
Drawback on destroyed goods
Open ↗The Director General may, at his discretion, allow drawback of excise duty on goods which suffer deterioration or damage and are destroyed in the presence of a senior officer of excise, if the conditions set out in section 19A in respect of re-exported goods are fulfilled in respect of such destroyed goods, and sections 19 A and 19B shall, mutatis mutandis, apply to such destroyed goods.
Refund to visitors and owners of samples
19 E. When any personal effects or other goods which have been imported by visitors to Malaysia for their personal use, or samples imported by commercial travellers, or trade samples or such other goods as may be prescribed, on which excise duty has been paid are re-exported within three months from the date of importation or within such further period as the Director General may, either generally or in any special case allow, the Director General may allow a drawback of such excise duty.
Relief from duty on goods temporarily imported
Open ↗Where the Director General is satisfied that goods are imported only temporarily with a view to subsequent re-exportation, he may permit the goods to be delivered on importation without payment of duty subject to the payment of a deposit equivalent to not less than the amount of duty which would be payable if the goods were imported for home use or security being given to the satisfaction of the Director General for the payment of such duty, and such deposit shall be refunded or such security discharged if the goods are re-exported within three months of the date of importation or within such further period as the Director General may allow.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
