How to Manage Customs Audit And Investigation (Including Post Importation Audit)

Customs Audit and Post Importation Audit  is a systematic examination of all the relevant records kept by businesses to establish accuracy and compliance with existing Customs Laws and Regulations.

This "How To Manage Customs Audit And Investigation (including Post Importation Audit) programme will enable participants to get an insight into the various types of  Customs Audits conducted by the Enforcement and Compliance Unit of the Royal Malaysian Customs Department (RMCD) in Malaysia on LMW, Duty Exemption, Refund, Drawback, Classification, Valuation, Certificate of Origin and others thereby minimising risk and avoid potential tax liabilities.  

Participants will gain a comprehensive understanding of the various concepts and the types of audits conducted by RMCD and thus equip themselves with an adequate knowledge and understanding of the potential areas of audit, the pitfalls to avoid and consequences of non-compliance.

The programme will also include methods and ways to handle a Customs Investigation that may arise. It will also contain the common offences and penalties under the relevant customs legislation and Appeal Procedures.

Learning Outcomes:

• Obtain sound knowledge of customs laws and regulations
• Understand the scope of Post Importation Audit
• Understand the types of audits and investigation under the various Customs Legislations
• Avoid pitfalls during the conduct of the audit and investigation and the possible areas that RMCD will focus
• Minimise potential tax liability that may arise during an audit and how to conduct oneself during an audit
• Handle a Customs audit or investigation with confidence
• Have an insight of the audit compliance requirements under the SST tax regime
• Know the manner of maintaining records accounts and documents to bolster the case in the event of an audit

Who Should Attend:

• CEOs
• Managing Directors
• General Managers
• Logistics/ Shipping/ Purchasing/ Export/ Import Managers and Executives
• Business Development Managers and Executives
• Finance Managers
• Accountants
• Those dealing with RMCD

Course Content:

• Module 1 : Customs Organisation and Structure
• Module 2 : Tax Audit Framework 
• Introduction
• What is an Audit
• Why Audit is necessary
• Laws relating to compliance Audit
• Who can be audited
• Audit Type & Venue
• Visit to premises
• Examination of Records
• Scope of Audit
• Right / Responsibilities of Auditee
• Audit Coverage
• Audit Findings
• Confidentiality
• Appeals
• Complaints
• Module 3 : Overview of Post Importation Audit
• Compliance requirement of the following ;
• Tariff Classification
• Valuation of Goods under WTO
• Accuracy of Duty Calculation
• Currency Exchange Rate
• Prohibitions and requirements of Import Permit and Import License
• Duty Exemption / Fcailities
• Preferential Duty / Certificate of Origin
• Module 4 : Classification of Goods                                                                
• The Harmonised System (HS)
• General Interpretative Rules (GIR)
• Application of Customs Rulings and Advance Rulings
• Problems associated with Classification and remedies involved
• Module 5 : Valuation of Goods
• WTO Valuation Agreement
• Methods of Valuation
• Customs (Rules of Valuation) Regulations 2018
• Sales Tax (Rules of Valuation) Regulations 2018
• Identifying Valuation problems
• Module 6 : Licensed Manufacturing Warehouse
• Concepts and Procedures
• Documentation (K1, K2, K9, GPB1, GPB2)
• Release to Domestic Market & Payment of Duty / ATIGA Duty Rate
• Accounting for losses due to fire, floods & theft
• Procedures as to Destructions of Scrap & Wastages
• Compliance with LMW conditions
• SST implications on Designated Areas (DA) and Special Areas (SA)
• Module 7 : MIDA Exemption / Treasury Exemption                                  
• Legal Provision - Sec. 14(2) Customs Act 1967
• Application for Treasury Exemption
• Self Declaration System for Machinery / equipment
• Application for Raw Materials & Components
• Conditions to be complied under Item 112 Customs Duties Exemption Order 2017
• Procedures & Documentation
• Areas of Audit Focus
• Module 8 : Refund and Drawback
• Understanding Refund and Drawback
• Application for Refund and Drawback (Documentation)
• Compliance with Refund and Drawback conditions
• Common mistakes in applying for Refund and Drawback
• Module 9 : Compliance with Import / Export Prohibition Orders 
• Customs (Prohibition of Import) Order 2023
• Customs (Prohibition of Export) Order 2023
• Compliance with Prohibition Orders
• Module 10 : Compliance with Claims For Preferential Tariff
• Various Free Trade Agreements / Certificate of Origin
• Bilateral Agreement
• Regional Agreement
• Customs Audit Claim for Preferential Tariff
• Preferential Certificate of Origin
• Self Declaration
• Self Certification
• Minor Discrepancies - Remedies
• Module 11 : Offences and Penalties Under Customs Act
• Module 12 : Review and Appeal Process
• Procedures & Requirements
• Appeal to Director-General
• Appeal to Customs Appeal Tribunal
• Appeal to Minister of Finance
• Appeal to High Court / Judicial Review