(1) This Act may be cited as the Free Zones Act Short title 1990. commence-
(2) This Act shall come into force on a date to be ment. appointed by the Minister by notification in the Gazette and the Minister may prescribe different dates for the coming into force of different provisions of this Act.
Act 438
Free Zones Act 1990
Akta zon bebas 1990
Text recovered by OCR from a scanned copy — section numbers and wording may be wrong. Check the official PDF on lom.agc.gov.my before citing.
An Act to provide for the establishment of free zones in Malaysia for promoting the economic life of the country and for related purposes. [5th. September 1991 ]P.u(B) 455/91 BE IT ENACTED by the Duli Yang Maha Mulia Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: PART I PRELIMINARY 1. (1) This Act may be cited as the Free Zones Act Short title 1990. commence- (2) This Act shall come into force on a date to be ment. appointed by the Minister by notification in the Gazette and the Minister may prescribe different dates for the coming into force of different provisions of this Act. 2. (1) In this Act, unless the context otherwise Interpre- requires— tation. "activity" includes commercial activity and manufacturing activity and related operations; "Authority" means any statutory body or company or department of the Government of Malaysia or of any State in Malaysia which has been appointed under the provisions of subsection (2) of section 3 to administer, maintain and operate any free zone; "commercial activity" includes trading, breaking subs. A55T bulk, goading, repacking, relabelling and transit; "customs duty" means any duty imposed by or under +AA924/95 the Customs Act 1967; Act 235.
Data synced
Part I — Preliminary
(1) In this Act, unless the context otherwise Interprerequires— tation. "activity" includes commercial activity and manufacturing activity and related operations; "Authority" means any statutory body or company or department of the Government of Malaysia or of any State in Malaysia which has been appointed under the provisions of subsection (2) of section 3 to administer, maintain and operate any free zone; "commercial activity" includes trading, breaking subs. A55T bulk, goading, repacking, relabelling and transit; "customs duty" means any duty imposed by or under +AA924/95 the Customs Act 1967; Act 235.
Act 176. 47924195→ AA924195 → Sub.AAl166 AA 924/95→ Act 64. Del.AA1572 [Pt. I, S. 2] "excise duty" means any duty imposed by or under the Excise Act 1976; "free zone" means any part of Malaysia declared under the provisions of subsection (1) of section 3 to be a free commercial zone or a free industrial zone; "goods" includes animals, birds, fish, plants and all kinds of movable property; "Labuan" shall have the same meaning assigned to it under section 154 of the Customs Act 1967; "Langkawi" shall have the same meaning assigned to it under section 163A of the Customs Act 1967: "legal landing.. "manufacture" means the conversion by manual oI mechanical means of organic or inorganic material into a new product by changing the size, shape, composition, nature or quality of such materials and includes the assembly of parts into a piece of machinery or other products, but does not include the installation of machinery or equipment for the purpose of construction; and the term "manufacturing activity" with its grammatical variations and cognate expression shall be construed accordingly and, in relation to such term, it shall include any activity as determined by the Director-General to be manufacturing activity: Provided that the Director-General may in his absolute discretion determine that the result of any manufacture or manufacturing activity is not a new product or article; "Minister" means the Minister for the time being charged with the responsibility for finance; "operation" means the operations set out under the activity approved by the Minister under the provisions of section Iu; prescribed place..." owner."pargkon". "principal customs area" means any part of Malaysia but excluding a free zone, Labuan and Langkawi; "proper officer... "sales tax" means any tax imposed by or under the Sales Tax Act 1972;
[Pt. I, S. 2-3] "service" has the same meaning as assigned to the term "prescribed service" in the Serviee Tax P.U. (A) Regulations 1975; 52/75.Del.AA1S72 "service tax" means any tax imposed by or under the- Act 151. Serviee Tax Act 1975; Ins. AA1166 Tioman... Del.AA1572 "value" in relation tol imported goods, means the subs.Ac 578 prıce which an importer would give for the goods on a purchase in the open market it the goods were delivered to him at the place of payment ot customs duty and if freight, insurance, commission and all other costs, charges and expenses (except any customs duty and wharf handling, storage, removal mechanical equipment and other charges incurred in a free zone) incidental to the purchase and delivery at such place had been paid.
(2) For the purpose of the definition of the word "value" , import means an import into a principal customs area from a free zone.
(A)...
(3) The expressions "Director-General", "officer of customs". ', "senior officer of customs" of customs" and "dutiable goods»,' "proper officer shall have the meaning assigned respectively to them in the Customs Act 1967. Ins.AA 1595
(1) The Minister may, by notification in the Gazette, Declaration declare any area in Malaysia to be a free commercial of free zones zone or a free industrial zone and every such appointment notification shall define the limits of such zone. of Authority.
(2) The Minister may appoint any statutory body established or constituted by or under a federal law or any department of the Government of Malaysia or with the consent of the State concerned, any statutory body established or constituted by or under a State law or any department of the Government of a State or, any company as the Authority to administer, maintain and operate any free zone which has been so declared under subsection (1).
[Pt. II, S. 4-5] Del.AA1572 Goods and services in a free zone. Odl.AA 1572 Dealing with or disposal of goods in a free zone. por otherwise A557
Part II — Activities permitted within a free zone
Subject to this Act goods-and services of any description, except those specifically and absolutely prohibited paзyket o amy cmpot amy oue ay a as ol, -service tax.
(1) Unless otherwise provided under this Act or any regulations made thereunder no person shall deal with or otherwise dispose of any goods in a free zone.
(2) Subject to the provisions of this Act, goods in a free zone may-
(a) be removed from such free zone for export or sent into another free zone either in original package or otherwise;
(b) unless otherwise directed by the Authority—
(i) be stored, sold, exhibited, broken up, repacked, assembled, distributed, sorted, graded, cleaned, mixed, or otherwise manipulated or be manufactured in accordance with the provisions of this Act, or
(ii) be destroyed;
(c) with the approval of the Authority, and subject to such conditions as may be imposed by it, be sent into any part of the principal customs area in the original package/provided that the Authority shall consult the Director- General before movement of the goods is authorised.
(3) The provisions of this section shall not apply to goods excluded by order made under subsection (1) of section 6.
[Pt. II, S. 6-8]
(1) The Minister may, by order published in the Exclusion of Gazette, exclude any goods or serviees from the goods-and provisions of section 4. -serviees-from Del. AA 1572 free status. oл.AA1512
(2) Notwithstanding anything to the contrary in any written law the provisions of the Customs Act 1967, theAct 235. Excise Act1976, the Sales Tax Act 1972 and the Ac176 Act 64.Sub.AA 1572 Service Tax Act 1975 shall apply to the goods ane Act 151. services so excluded as if the free zone is a place within Dлl.AA157) the principal customs area. 6A... 70Unless otherwise provided under this Act or any Goods regulations made thereunder or under any other , deemed to be written law— exported from, or
(a) goods which are taken out from any part of the imported principal customs area and brought into a free into, zone shall be deemed to be exported from Malaysia. Malaysia; and
(b) goods which are brought out of a free zone and taken into any part of the principal customs area shall be deemed to be imported into Malaysia. ()...
(1) Goods manufactured within a free industrial Goods zone shall not be taken out of such zone except— manufactured in a free
(a) for export; or industrial zone.
(b) with the approval of the Authority and after consultation with the Director-General, and subject to such conditions as may be imposed, for transmission of the goods to a free commercial zone.
(2) No retail trade shall be conducted within a free industrial zone unless authorised by the Authority; and the Authority may in relation to such authorisation impose such conditions as it deems fit. d/A537
(3) The Authority shall consult the Director- General before authorising any retail to be conducted within a free industrial zone.
Penalty. [Pt. II, S. 8-10]
(4) Goods manufactured in a free industrial zone shall not, without the written permission of a proper officer of customs not below the rank of Assistant Director of Customs and Excise, be used or consumed in such zone. 8A...
Any person who contravenes the provisions of section 5 or 8 shall be guilty of an offence and shall, on conviction, be liable for the first offence to a fine of not less than ten times the amount of the customs or excise duty or tax or five thousand ringgit, whichever is the lesser amount, and of not more than twenty times the amount of the customs or excise duty or tax or five thousand ringgit whichever is the greater amount, and for a second or any subsequent offence to a fine of not less than twenty times the customs or excise duty or tax or ten thousand ringgit whichever is the lesser amount and of not more than forty times the customs or excise duty or tax or ten thousand ringgit, whichever is the greater amount, or to imprisonment for a term not exceeding two years or to both such fine and imprisonment: Provided that when the value of the goods cannot be ascertained the penalty may amount to a fine not exceeding five thousand ringgit. Activity. A557
(1) With the approval of the Minister—
(a) there may be carried out in a free commercial zone the activities specified in the First Schedule;
(b) there may be carried out in a free industrial zone the manufacturing activities specified in the Second Schedule.
(2) The Minister may, trom time to time, by notitication in the Gazette add to, alter or amend the First and the Second Schedules.
(3) Subject to section 8, no commercial activity shall be allowed in a free industrial zone. 1oA...
[Pt. II-ШI, S. 11-13]
(1) Subject to this Act goods of any description Goods which would be used directly for the manufacture of petoateed other goods and are approved by the Minister or goods industrial manufactured in any part of the principal customs area zone. which are meant for export may be brought into a free industrial zone.
(2) No other goods except those referred to in subs. A557 subsection (1) shall be allowed to be brought into a free industrial zone.
(1) Subject to subsection (2) goods of any Goods description may be brought into a free commercial zone permitted into a free d/4557 for retail trade or otherwise. commercial zone.
(2) The Minister may, by order, prohibit any goods or class of goods from being taken into a free commercial zone.
Part III — Specific functions of authority
(1) The Minister may require the Authority to Authority provide and maintain/in a free zone such facilities as he to provide facilities. may consider necessary for the proper and efficient Lor allon functioning of such zone. A557
(2) The Minister may give to the Authority such directions as he may consider necessary for the proper functioning of a free zone or for the purpose of protecting revenue; and the Authority shall comply with such directions.
(3) The Authority shall provide adequate facilities for officers of customs whose duties may require their presence within or at the perimeter of a free zone; and the Authority shall permit customs offices to be established in a free zone-
(a) to enable the Director-General to make such arrangements as he deems necessary to ensure the proper supervision of goods taken out from the free zone; and
[Pt. III, S. 13-16] Oл.AA1595
(b) for such purpose as may be considered necessary by the Minister for the better administration of the provisions of this Act.
(4) The Authority shall provide adequate enclosures to segregate a free zone from the principal customs area for the protection of revenue together with suitable provisions for the movement of persons, conveyances, vessels and goods entering or leaving a free zone. Authority
(1) The Authority may permit any person to erect may permit such buildings and other structures within a free erection of private Dd- AAIsqndustrial zone as may be required. buildings, etc.
(2) The Authority may, after consulting the Director-General, lease to or allow any person to take, hold or enjoy movable and immovable property of every description in a free industrial zone upon such terms and conditions and for such period as the Authority may determine. Entry and
(1) Subject to this Act no person shall enter or residence in a free reside within a free industrial zone without the -industriat permission of the Authority. zone.Dd.AA1595
(2) Any person who contravenes the provision of subsection (1) shall be guilty of an offence under this Act. Exclusion of certain goods, etc
(1) The Authority may in its discretion order the exclusion or removal from a free industrial zone of any goods, or the discontinuance of any activity or operations, which in its opinion are dangerous or prejudicial to the public interest, health or safety.
(2) An order by the Authority as to the removal or exclusion of any goods, which in the opinion of the Authority are dangerous or prejudicial to public safety, shall, notwithstanding an appeal to the Minister, be complied with immediately; but an order as to the discontinuance of activities or operations shall not take effect, if an appeal has been made to the Minister, until the determination of the appeal in favour of the Authority.
IPt. III-IV, S. 16-20]
(3) The decision of the Minister shall be final and not be subject to review in any court.
(1) The Authority shall prescribe the form and Annual manner of keeping the accounts of a free industrial reports and d(Ang4.| accounts. zone.
(2) The Authority if so directed by the Minister shall present to him annually and at such other times as the Minister may prescribe, reports containing a full Sub. AA1595 statement of all activities, operations, receipts and expenditure and such other information in respect of such zone as the Minister may require.
(3)... 17A- 17B... Ins. AA1S95 Ins.AA1630
Part IV — Offences, penalties, search, seizure, arrest and provisions as to trials and proceedings
Every omission or neglect to comply with, and Penalty for every act done or attempted to be done contrary to , offences the provisions of this Act or any regulations made wise prothereunder shall be an offence and in respect of any - , vided for. such offence for which no penalty is expressly provided, the offender shall be liable on conviction to a fine not exceeding five thousand ringgit. Sub.AA 1595
Whoever attempts to commit any offence Attempts punishable under this Act or any regulations made and thereunder or abets the commission of such offence abetments. shall be punished with the punishment provided for such offence. д0A... Ins. AA1S95
[Pt. IV, S. 21-22] Issue of search warrant. Sub.A11595 Del.AA 1572 Sub.AAIS95
Whenever it appears to any Magistrate on information and after such enquiry as he may think ie aesy thop, watehreise or orle Suilygingo beliace that free zone, there are concealed or deposited any goods 19 07g thet o vi Ac or, the saeo tho ct 192 Ac. service lax Act 19/2 or this Act or any regulations made thereunder had been committed, such Magistrate may issue a warrant authorising an officer of customs, named therein, by day or by night and with or without assistance—
(a) to enter such shop, warehouse Shop orworchouse, or other building' otfief premiles building or place-and there to search for and seize ahy goods in respect of which there is reason to believe that the offence aforesaid has been committed, and any book or document Which may reasonably be believed to have a bearing on the case;
(b) ggop,esware gere, orpensons teinginuc possession of any goods aforesaid found, or whom such officer may reasonably suspect to have concealed or deposited such goods; ctnpretopeorho ne ohernecessary any door ot such shop, warehouse, building or pläce-and enter thereinto;
(d) to forcibly enter, if necessary, such place and evèry part thereof;
(e) to remove by force any obstruction to such entry, search, seizure and removal as he is empowered to effect; and
(f) detain any person found in such place until such place has been searched. When search 22. Whenever it appears to any senior officer of may be made without customs that there is reasonable cause to believe that in warrant. any shop, warehouse or othet building or place in a free zone, there are concealed or deposited any goods in
[Pt. IV, S. 22-24] respect of which an offence under the Customs Act 1967, the Excise Act 1976, the-Sales fax Act 1972, the De.AA1572 Service Tax Act 1975-or this Act or any regulations made thereunder has been committed, and if he has reasonable grounds for believing that by reason of any delay in obtaining a search warrant under section 21 such goods or any book or document, which may reasonably be believed to have a bearing on the case are liany in bespect of susuci ops eareastee or el e building or place all the powers mentioned in the said Sub. AA1S95 section 21 in as full and ample a manner as if he were authorised so to do by warrant issued under that section.
(1) Any officer of customs may stop and examine Officers of any vehicle in a free zone for the purpose of customs may ascertaining whether any goods which may form the search consubject of an offence under the Customs Act 1967, the veyances. Excise Act 1976, the Sales Tax Aet 1972, the Service Tax Act 1975 or this Act or under any regulations made De.An1s72 thereunder are contained therein, and the person in control or in charge of such vehicle shall if required so to do by such officer stop such vehicle and allow such officer to examine the same or move the vehicle to another place for examination, and shall not proceed until permission to do so has been given by such officer.
(2) The person in control or in charge of any vehicle stopped for examination under subsection (1) shall if so requested by the officer of customs open all parts of the vehicle for examination by such officer and take all measures necessary to enable such examination as such officer considers necessary to be made. 23A.... = Cus.AA1II3
Any proper officer of customs may in a free zone Power to examine any goods which are being taken into or being open packages removed from a free zone or intended to be taken into and examine or removed from a free zone and for the purpose of such goods. examination direct the same to be brought to a customs office or a customs station and may open any package or receptacle.
Search of persons entering or leaving a free zone. Subs. AA1113 Seizure of goods subject of an offence. Del.AAIS72 [Pt. IV, S. 25-26]
Any person landing, or being about to land, or having recently landed in a free zone, from any vessel or aircratt, whether for the purpose of landing or otherwise, or entering or having recently entered a free zone by road or railway or leaving or about to leave a free zone in any vessel or aircraft, or by road or railway shall, it so requested by any proper officer of customs either permit his person, goods and baggage to be searched by such officer, or together with such goods and baggage accompany such ofticer to a customs oftice or customs station or police station and there permit his person, goods and baggage to be searched by an officer of customs: Provided that—
(a) any person requesting that his person be searched in the presence of a senior officer of customs shall not be searched except in the presence of and under the supervision of such officer, and such person may be detained until the arrival of such officer or taken into any customs office or customs station or police station where such officer may be found;
(b) the goods and baggage of any person who requests to be present when they are searched and so present himself within a reasonable time shall not be searched except in his presence; and another
(c) no temale shall be searched except by A female officer of customs or police officer, witl strict regard to decêncy.
(1) All goods in respect of which there has been, or there is a reasonable cause to believe that there has been committed any offence against, or any breach of, the Customs Act 1967, the Excise Act 1976, the Sales Tax Act 1912, the Serviee Tax Aet 1975 or this Act or any regulations made thereunder or any contravention of any restriction or condition subject to which any licence, permit or authorisation has been granted under
[Pt. IV, S. 26] any such law, together with any receptacle, baggage, package, vehicle, vessel (not exceeding one hundred and eighty two nett registered tonnes), or aircraft other than an aircraft engaged in international carriage, in which the same may be found or which is used in connection with such offence, breach or contravention, and any book or document which may be reasonably believed to have a bearing on the case, may be seized by any officer of customs in a free zone.
(2) All such goods and such receptacles, baggages, packages, vehicles, vessels or aircrafts shall, as soon as is practicable, be delivered into the care of a proper officer of customs whose duty it is to receive the same.
(3) Whenever any goods, receptacle, package, baggage, vehicle, vessel or aircraft is seized under this Act, the officer effecting the seizure shall forthwith give to the owner thereot, II known, notice in writing oi such seizure and the reasons theretor, either by delivering such notice to hım personally or by post at his place of abode, it known: Provided that such notice shall not be required to be given where such seizure is made on the person or in the presence of the offender or the owner or his agents, and, in the case of a vessel or an aircraft in the presence of the master or pilot, as the case may be.
(3A) - (3b)...
(4) The provisions of this section relating to the seizure of goods shall apply to all the contents of any package or receptacle seized and to any article used to conceal the same.
(5) The provisions of this section relating to the seizure of any vessel or aircraft shall apply also to tackles, equipments and furnishings of such vessel or aircraft.
(6) The provisions of this section relating to the seizure of conveyances shall apply to all equipments thereof. Ins.AA1630
Return or disposal of movable property. Suts. Act 578 2ths. AA 1I13 [Pt. IV, S. 27]
(1) Where any movable property has been seized under this Act, a senior officer of customs may, at his discretion—
(a) temporarily return the movable property to the owner or to the person from whose possession, custody or control it was seized, or to such person as the senior officer of customs may consider entitled thereto, subject to such terms and conditions as may be imposed and, in any case, subject to sufficient security being furnished to the satisfaction of the senior officer of customs that the movable property shall be surrendered to a senior officer of customs on demand and that the said terms and conditions, if any, shall be complied with; OI
(b) return the movable property to the owner or to the person from whose possession, custody or control it was seized, or to such person as the senior officer of customs may consider entitled thereto, with liberty for the person to whom the movable property is so returned to dispose of the same, such return being subject to security being furnished to the satisfaction of the senior officer of customs in an amount not less than an amount which, in the opinion of the senior officer of customs, represents-
(i) the open market value of such property on the date on which it is so returned; ii)the customs duty payablein respect thereof; and
(iii) any tax payable in respect thereof under any written law, for the payment of the amount so secured to the Director-General in the event of the court making an order for the forfeiture of such amount under section 39g or
[Pt. IV, S. 27]
(c) sell or destroy the movable property, as appropriate in the circumstances, where it is a living creature or where, in the opinion of the senior officer of customs, it is of a perishable or dangerous nature or lkely to speedily deteriorate in quality or value, and where it is so sold, he shall hold the proceeds of sale <pending the result of any prosecution or claim -and in relation to such proceeds of sale to abide by the outcome of such prosecution of elaim:
(2) Any person who-
(a) fails to surrender on demand to a senior officer of customs the movable property temporarily returned to him under paragraph (a) of subsection (1); or
(b) fails to comply with or contravenes any of the terms or conditions imposed under paragraph
(a) of subsection (1), shall be guilty of an offence and' shall, on conviction, be liable to imprisonment for a term not exceeding three years or to a fine not exceeding ten thousand ringgit or to both.
(3) The criminal liability of any person under subsection (2) shall be in addition to any other liability that the said person or any other person may incur under the terms and conditions relating to the return of the movable property under paragraph (a) of subsection (1).
(4) The provisions of subsection (2) shall not apply to such person, if any, who is the guarantor or surety of the person to whom the property is returned under paragraph (a) of subsection (1).
(5) The Minister may, from time to time, either generally or in any particular case or class of cases, give such direction to the Director-General as he may deem _Suts. AA1113
Kaлuaber. AA 1113 Powers of arrest. [Pt. IV, S. 27-29] necessary or expedient with regard to the exercise of the powers conferred on a senior officer of customs under subsection (1).
(6) No person shall be entitled to maintain any action on account of any act done or any decision taken by or on behalf of the Minister or by or on behalf of a senior officer of customs under this section, and no court shall have any jurisdiction to entertain any such action. 28."Any officer of customs may arrest in a free zone without warrant-
(a) any person found committing or attempting to commit, or employing or aiding any person to commit, or abetting the commission of an offence against this Act or any regulations made thereunder;
(b) any person whom he may reasonably suspect to have in his possession any goods liable to seizure under the Customs Act 1967, the Excise Act 1976, the Sales Tax Aet 1972, the Service Tax Act 1975, or this Act or any regulations made thereunder; or
(c) any person against whom a reasonable suspicion exists that he had committed an Bfcnce At not th th s0n rax Act 12, the Service Tax Act 1975, or this Act or any regulations made thereunder, and may search, or cause to be searched, any person so arrested: another Sals. AA1113 195.AA1I13 Provisions relating to arrest without warrant.
(1) An officer of customs making an arrest without warrant shall, without unnecessary delay and subject to the provisions of this Act, as to bail or previous release, take or send the person arrested before a Magistrates' Court.
[Pt. IV, S. 29-31]
(2) No otticer of customs shall detain in custody a person arrested without a warrant for a longer period than under the circumstances of the case is reasonable; and such period shall not exceed twenty-four hours exclusive of the time necessary for the journey from the place of arrest to the Magistrates' Court. 1) msspal be relasas except onested byan ofd or of bail or under a special order in writing by a Magistrate or a senior officer of customs. P•AA1II3
Prosecution in respect of offences committed Who may under— prosecute.
(a) sections 5/and 8 may be conducted by a senior L6A officer of customs or by any officer of customs specially authorised in writing in that behalf by the Director-General; and
(b) any other provisions of this Act or any regulations made thereunder may be conducted by an officer of the Authority, specially or generally authorised in writing in that behalf by the Minister. 30 A.... 30B... Ins. AA1II3 Ins. AA 1630
(1) Except as hereinafter provided, no witness in Protection any ciyil or criminal proceedings conducted pursuant to qf informers this Act shall be obliged or permitted to disclose the discovery. name or address of an informer or the substance of the information received from him or to state any matter which might lead to his discoyery.
(2) If any book or doçument which is in evidence or liable to inspection in any clvil or crmuna. proceedings whatsoever, contain any entry or passage in which any informer is named or described or which might lead to his discovery, the court shall cause all such entries or passages to be concealed from view or to be obliterated insotar only as may be necessary to protect the informer from discovery.
(3) If on the trial for any offençe against this Act or any regulations made thereunder the court, after full enquiry into the case, believes that the informer
sals. AAIII3 Offence by bodies of persons and by servants and agents. Subs. AA1113 Suts, AAI113 Compounding of offences. Sub. AA1595 [Pt. IV, S. 31-33] wilfully made in his complaint a material statement which he knew or believed to be false or did not believe to be true, or if in any other proceedings the court is of the opinion that justice cannot be fully done between the parties thereto without the discovery of the informer, it shall be lawful for the court to require the production of the original complaint, if in writing, and permit enquiry, and require full disclosure, concerning the informer.
(1) Where an offence against this Act or any regulations made therewhoer nas been committed by a company,/tirm,/society,or other body of persons, any person who at the time of the commission of the offence was a director, manager,spa ssecretary or other similar officer of the company, societyyor other body of persons, a partner or manager of the firm, or such other person purporting to act in such capacity or such person csoberyin chare or peostro orti command ,fre sociey that offence, unless he proves that the offence was committed without his consent or connivance and that he has exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances.
(2) Where any person would be liable under this Act to any punishment, penalty or torteiture for any act, omission, neglect or default he shall be liable to the same punishment, penalty or forfeiture for every such act, omission, neglect or default of any clerk, servant or agent, or of the clerk or servant of such agent provided that such act, omission, neglect or default was committed by such clerk or servant in the course of his employment or by such agent when acting on behalf of such person or by the clerk or servant of such agent when acting in the course ofhis employment in such circumstances that had such act, omission, neglect or default been committed by the agent his principal would have been liable under this section.
(1) Any senior officer df customs may compound any offence under this Act which is prescribed to be a compoundable offence by requiring the person
[Pt. IV, S. 33-36] reasonably suspected of having committed an offence to pay a sum of money not exceeding five thousand ringgit.
(2) On payment of such'sum of money the person Suls. AA 1113 reasonably suspected of having committed an offence, if he is in custody, shall be discharged, and any property seized shall be released and no further proceedings shall be taken against such person or property, unless the property consists of goods the import of which into Malaysia is absolutely or conditionally prohibited under any written law and no import licence has been issued in which case such goods shall be forfeited.
The Government or the Authority, as the case may Protection be, shall not be liable to make good any loss sustained of Governin respect of any goods by fire, theft, damage or any liability. other cause while such goods are in any customs warehouse or in the lawful custody or control of any officer of customs or an employee of the Authority unless such loss is caused by the wilful neglect, or default of an officer of customs or of a person employed by the Government or the Authority.
No officer of customs or other person employed by Protection the Government in connection with the customs shall officers of be liable to make good any loss sustained in respect of from liability. any goods by fire, theft, damage or other cause while such goods are in any customs warehouse or in the lawful custody or control of such officer or any other officer of customs or person employed in connection with customs unless such loss is caused by his wilful neglect or default.
No person shall in any proceedings before any No costs or court in respect of the seizure of any goods seized in damages exercise or the purported exercise of any power recoverable conferred by this Act be entitled to the cost of such unless seizure is proceedings or to any damages or other relief except an without order for the return of such goods or the payment of reasonable their value unless such seizure was made without or probable reasonable or probable cause. cause.
Conviction under other written law. [Pt. IV, S. 37-39]
Nothing in this Act shall prevent any person from being prosecuted under any written law for any act, omission, neglect or default which constitutes an offence under this Act or any regulations made thereunder, or from being liable under that written law to any punishment or penalty higher or otherwise than that provided by this Act or any regulations made thereunder. Goods liable
All goods seized under this Act shall be liable to to forfeiture: forfeiture. Coutt to
(1) An order for the forfeiture or for the release of order forfeiture and anything liable to forfeiture under the provisions of this disposal of Act shall be made by the Court before which the goods seized. prosecution with regard thereto has been held, and an order for the forfeitute of goods shall be made if it is proved to the satisfaction of the Coutt that an offence against this Act or any regulations made thereunder has been committed and that the goods were the subject matter of, or were used in the commission of, the offence notwithstanding that no person may have been convicted of such offence.
(2) The Court shall order the forfeiture of,-
(a) in the case of goods returned under paragraph
(b) of subsection (1) of section 27 and subsequently disposed of by the owner or by the person to whom it was returned, the amount secured under that paragraph;
(b) in the case of goods sold pursuant to paragraph (c) of subsection (1) of section 27, the amount realised by such sale, if it is proved to the satisfication of the Court that an offence against this Act or ahy regulations made thereunder has been committed and that the movable propetty in respect of which the amount was secured or realised by sale, as the case may be, was the subject
[Pt. IV, S. 39-40] matter of or, was used in the commission of, the offence notwithstanding that no person may have been convicted of such offence.
(3) All things forfeited shall be delivered to a proper officer of customs and shall be disposed of in accordance with the directions of the Director-General.
(1) It there be no prosecution with regard to any Goods seized goods seized under this Act, such goods shall be taken in respect of which there is and deemed to be forfeited at the expiration of one no prosecucalendar month from the date of seizure unless a claim tion. thereto is made before that date in the manner hereinafter set forth.
(2) Any person asserting that he is the owner of such goods and that they are not liable to forfeiture may personally or by his agent authorise in writing give written notice to a senior officer of customs that he claims the same.
(3) On receipt of such notice the senior officer of customs shall refer the claim to the Director-General who may direct that such goods be released or may direct such senior officer of customs, by information in the prescribed form, to refer the matter to the Magistrate of the First Class for his decision.
(4) The Magistrate of the First Class shall issue a summons requiring the person asserting that he is the owner of the goods and the person from whom they were seized to appear before him, and upon their appearance or default to appear, due service of such summons being proved, the Magistrate shall proceed to the examination of the matter and, on proof that an offerice against this Act has been committed and that such goods were the subject matter, or used in the commission, of such offence, shall order the same to be forfeited, or may in the absence of such proof order their release.
[Pt. IV-V, S. 41-45] Goods seized 41. he Minister may, upon application made to him in may be delivered to writing through the Director-General, order any goods the owner or seized under this Act, whether forfeited, or taken and other person. deemed to be forfeited, to be delivered to the owner or other person entitled thereto, upon such terms and conditions as he may deem fit: Provided that any such application shall be made before the expiration of one calendar month from the date of forfeiture of such goods or from the date on which such goods shall be taken and deemed to be forfeited, as the case may be. HIA... Ins.AA1S95
Part V — Miscellaneous provisions
(1) The proper officer of customs may at any time customs may take samples of any goods to ascertain whether they are take samples. goods of a description liable to any customs duty or to ascertain the customs duty on such goods on entry into the principal customs area or for such other purpose as the proper officer of customs may deem necessary, and such samples may be disposed of in such manner as the Director-General shall direct.
(2) No payment shall be made for any sample taken but the proper officer of customs shall give a receipt for any sample so taken. Public servants.
The members of the Authority and the employees thereof of every description when exercising their functions or carrying out their duties under this Act shall be deemed to be public servants for the purpose of the Penal Code. F.M.S. Cap. 45. Rewards.
The Director-General may order such rewards as he may deem fit to be paid to any officer of customs or any other person for services rendered in connection with the detection of cases of smuggling or of offences under this Act, or in connection with any seizure made under this Act.
[Pt. V-vI, S. 46-51]
Where it is provided in this Act or any regulations Appeal from made thereunder that the decision on any matter rests the Authority with the Authority or the Director-General, then or the unless it is specifically provided that such decision is at Director- General. the absolute discretion of the Authority or the Director-General, any person aggrieved by such decision may appeal to the Minister.
The Minister may make regulations as may be Powerto necessary or expedient for giving full effect to the make regulaprovisions of this Act or the carrying out of the purposes of this Act.
The Minister may, in relation to a free zone, Power of delegate to any person all or any of his powers under delegation. this Act, except the power under section 10 (2) and section 47.
Part VI — Amendments and repeal
The Acts specified in the first column of the Third Amendments Schedule are repealed or amended, as the case may be, and repeal. to the extent shown in the second column of the same Schedüle.
Any free trade zone declared under section 3 of the Free trade Free Trade Zones Act 1971, and which is still in force zone deemed immediately before the commencement of this Act, industrial shall be deemed to be a free industrial zone declared zone. under section 3 of this Act until revoked by the Act 24. Minister.
The Minister may revoke any declaration or order Minister made under this Act or any written law repealed by this may revoke Act in respect of any free zone: declaration or order. Provided that any order of revocation made under this section, if it has the effect of abolishing any free zone so declared, shall allow sufficient time for the persons in the free zone directly affected by such order to make arrangement for the disposal of their goods.
[1st-2nd Sch.]
[Section 10 (1) (a)] Name of Free Commercial Zone 1. Mukim of Plentong District of Johor Bahru: Sub. PucB) 326/2000 Mukim of Plentong in the District of Johor Bahru, bounded by the Plan 1709 deposited in the Office of the Director of Survey, Johor. 2. Duty Free Area at Pengkalan Kubor: Fenced area which includes Lot No. 752 to 759, 761 to 784, the market area and such other areas therein, of Mukim Pengkalan Kubor, in the district of Tumpat, Kelantan. P.U(B)96/93→ (as. P.u.Co) 3. Bukit Kayu Hitam: Lot No. (Pt. 1443) Town of Bukit Kayu Hitam, Mukim of Sungai Laka, District of Kubang Pasu, Kedah. 4•- 5... 6.. 7...8 las.P.4.CB) →
420/96 9... lns.P.4.CB)→ [Section 10 (1) (b)] las.f.u.CA exs/aд → 10... (ns,P.U.CA)→ •1•• • Name of Free Industrial Zone Ins. Puco 397/20023,iL Ins.puc0)79/2501 : Mukim of Plentong, Johor Bahru: Ins.Pu(B)192/2003 Ins.Pu(6) 65/2004 i7...All that land situated Mukim of Plentong in the District Ins.Pu(8) 96/2001 Plan 1709 deposited in the Office of the Director of Survey, Johor. Commercial excluding. trading Trading Trading Sub.Pur8) 326/2000
[2nd Sch.] Name of Free Industrial Zone : 2. Mukim District of Malacca of Pringgit, Centra All that land situated in the Mukim of Pringgit, in the Central District of Malacca, bounded by the grey line as shown in the Gazette Plan PG 109 deposited in the Office of the Director of Survey, Malacca. 3. Mukim of Tanjung Kling, Malacca: Alkim ot Tani siriated in the Central District of Malacca, in unded batete Yylan ass los deposited in the Office of the Directot of Survey, Malacca. 4. Mukim of Pringgit and Bukit Baru, in Central District of Malacca: Mukim of Pringgit and Bukit Baru, in the Central District of Malacca, bounded by the grey line as shown in the Gazette Plan PG 108 deposited in the Office of the Ditector of Survey, Malacca. 5. Mukim of Hulu Kinta in the District of Kinta, Perak: All that land situated in the Mukim of Hulu Kinta in the District of Kinta, bounded by the Plan 870 deposited in the Office of the Director of Survey, Perak. 6. Telok Panglima Garang in the District of Kuala Langat, Selangor: Mukim of Telok Panglima Garang, in the District of Kuala Acivities Subs/P.uCB) 467/92
[2nd Sch.] 10 and fagc 1 Plan 128 Subs, R.4.(6)18/2001 Ins.(u66)/96/15 Ins.Puce) 175/12 Ins.Puc6)151/09 P.u(B)466/92 → P.UCB)468/927 8440)91193→ 1.AIra) Name of Free Industrial Zone Langat, Selangor, bounded by the Plan(440 deposited in the Office of the Director of Survey, Selangor. 7. Mukim of Ulu Klang, District of Gombak, Selangor: Mukim of Ulu Klang, in the District of Gombak, Selangor bounded by the grey line as shown in the Gazette Plan 439 deposited in the Office of the Director of Survey, Selangor. 8. Mukim of Damansara, District of Klang, Selangor: Mukim of Damansara, in the District of Klang, Selangor bounded by the grey line as shown in the Gazette Plan 375 deposited in the Office of the Director of Survey, Selangor. 9. Prai, Central District of Seberang Prai, Mukim 1, Penang: All that land bounded by the grey line as shown in the Gazette Plan 290 deposited in the Office of the Director of Survey, Penang. 10. Bayan Lepas, South West District, Mukim 12, Penang:
(i) All that land bounded by the grey line as shown in the Gazette Plan 138 deposited in the Office of the Director of Survey, Penang;
(ii) All that land bounded by the grey land as shown in Gazette Plan deposited in the Office of the Director of Survey, Penan... 1... 12.. 138 14... 20. 21-21...
[2nd-3rd Sch.] Name of Free Industrial Zone
(iii) All that land boundedby grey line as shown in the Gazette Plan 289 deposited in the Office of the Director of Survey, Penang. Acts Customs Act 1967 • Excise Act 1976 Sales Tax Act 1972
(Section 49) AMENDMENTS AND REPEAL Act 438. Act 438. Amendments Section 2 is amended by substituting for subsection (1A) the tollowing new subsection (1A): "(1A) For the purposes of this Act (other than section 31), a free zone shall be deemed to be a place outside Malaysia. In this subsection, the expression "free zone" has the meaning Free Zones Act 1990.". Subsection (1) of section 2 is amendedby substituting for the definition of "free trade zone" the following new definition: " "free zone" has the meaning Free Zones Act 1990 and for the purposes of this Act a tree zone shall be deemed to be a place outside Malaysia;". Section 2ais amended by substituting. therefor the following new section "2A. For the purpose of this Act a free zone shall.be deemed to be place outside Malaysia.
[3rd Sch.] Acts • Act 438. Service Tax Act 1975 Act 438. Promotion of Invest- ments Act 1986 Free Trade Zones Amendments In this section, the expression "free zone" has the meaning Free Zones Act 1990." Insert immediately after section 2 the following new section 2A: "ZA. For the purposes of this Act, a free zone shall be deemed tobe place outside Malaysia. In this section, the expression "free zone" has the same meaning Free Zones Act 1990."
(a) Subsection (5) of section 36 is amended by substituting the words "Free Industrial Zone" for the words "Free Trade Zone" appearing therein; and
(b) subsection (3) of section 36A is amended by substituting the words "Free Industrial Zone" for the words "Free Trade Zone" appearing therein. Repeal the whole. DICETAK OLEH CHAZALI BIN JANI, K.M.N., A.M.P.. P.P.T., PEMANGKU KETUA PENGARAH PERCETAKAN NEGARA, MALAYSIA DENGAN PERINTAH PADA 10HB MEI 1990 Harga: $3.00
Cite this legislation
- Official citation
- Act 438
- Source
- lom.agc.gov.my
- Data synced
- Licence
- Official text, free to reproduce (Copyright Act 1987 [Act 332] s 3) ↗
Free Zones Act 1990 [Act 438] (Laws of Malaysia, lom.agc.gov.my). Retrieved via LawPlayer, https://lawplayer.com/my/act/act-438
This text is synced from lom.agc.gov.my. In case of any discrepancy, the authoritative text prevails.
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).