ISKANDAR PUTERI: The availability of multiple exit routes, compounded by a shortage of Customs Department personnel, has fuelled the incidents of smuggling at Johor's massive Forest City development.
The department estimated that between 2021 and last year, the government had incurred more than RM800,000 in losses from unpaid taxes as a result of smuggling in the duty-free zone.
Customs director-general Datuk Anis Rizana Mohd Zainudin said the ongoing development and construction within the mammoth township had created numerous clandestine routes, which allowed smugglers to bypass the sole Customs checkpoint at the Fishermen's Wharf duty-free complex.
She told the New Straits Times that an average of 8,000 vehicles passed through the Customs checkpoint annually.
The alternative routes, she said, could simply be found using navigation applications.
Anis Rizana also noted that the Customs checkpoint wasn't strategically located and was unsuitable for conducting checks during peak hours, rainy weather and at night.
She said that under Section 13 of the Free Zone Act 1990, the developer, in this case Forest City, was responsible for providing appropriate Customs offices and checkpoints in its duty-free complex and exit points.
"The location of the existing Customs office and inspection post is no longer in accordance with requirements," she said.
She said Forest City had since agreed to build a new Customs office and checkpoint at a more suitable location.
However, Anis Rizana acknowledged that the blame did not lie solely on Forest City's infrastructure. She said manpower shortages were also a contributing factor when dealing with smuggling in Forest City.
The situation, she said, was exacerbated when officers took medical leave or had to attend training courses, which reduced the department's manpower in Forest City.
She also cited safety concerns, saying that officers had encountered "drive-and-dash" cases at the existing checkpoint, especially late at night.
Anis Rizana estimated a loss of RM833,067 from untaxed goods, based on seizure data between 2021 and last year.
She said Customs had last year intercepted RM109,258 worth of unpaid duty goods at Fisherman's Wharf complex.
This marked a decrease from the last two years, when seizures amounted to RM220,999 and RM502,809.33, respectively.
To tackle the issue, Anis Rizana said the department had stationed two enforcement officers in front of the Fishermen's
Wharf complex with immediate effect.
"These officers will authenticate the passports and MyKad of duty-free goods buyers to check whether they qualify for their purchases. Customers will not be able to purchase the goods without these documents.
"Forest City residents will also have to produce their resident's card before making purchases" she said.
The presence of officers, she said, would also deter runners from attempting to strike deals with customers to smuggle duty-free goods out of Forest City.
The department will also regularly inspect sales records of duty-free stores and set up enhanced roadblocks. Overtime staffing arrangements, she said, had been initiated to counteract manpower shortages.
On Jan 5, the NST had reported how smuggling of duty-free goods out of Forest City was made possible with the presence of runners.
One runner claimed that he was in "good terms" with the Customs officers, and if he were to bring out 30 crates of beer, he would be charged for just one or two to "meet the tax quota".