"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 (excluding retail trade), breaking bulk, grading, repacking, and relabelling;

  "customs airport"  shall have the same meaning assigned to it under the Customs Act 1967;

  "customs duty"  means any duty imposed by or under the Customs Act 1967;

  "exc

3 PART I PRELIMINARY-3. Declaration of free zones and appointment of Authority.

(1) The Minister may, by notification in the Gazette , declare any area in Malaysia to be a free commercial zone or a free industrial zone and every such notification shall define the limits of such zone.

(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).

4 PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-4. Goods and services in a free zone.

Subject to this Act goods and services of any description, except those specifically and absolutely prohibited by law, may be brought into, produced, manufactured or provided in a free zone without payment of any customs duty, excise duty, sales tax or service tax.

5 PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-5. Dealing with or disposal of goods in a free zone.

(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 or otherwise provided that the Authority shall consult the Directo

6 PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-6. Exclusion of goods and services from free status.

(1) The Minister may, by order published in the Gazette, exclude any goods or services from the provisions of section 4.

(2) Notwithstanding anything to the contrary in any written law the provisions of the Customs Act 1967, the Excise Act 1976, the Sales Tax Act 1972 and the Service Tax Act 1975 shall apply to the goods and services so excluded as if the free zone is a place within the principal customs area.

6A PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-6A. Retail trade in free zone.

The Minister may, at his absolute discretion, authorise any retail trade to be conducted in a free zone and the Minister may in relation to such authorisation impose such conditions as he may deem fit.

7 PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-7. Goods deemed to be exported from, or imported into, Malaysia.

(1) Unless otherwise provided under this Act or any regulations made thereunder or under any other written law:

(a) goods which are taken out from any part of the principal customs area and brought into a free zone shall be deemed to be exported from 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.

(2) Custom duty, if any, on any goods deemed to be exported from or imported into Malaysia shall be payable.

8 PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-8. Goods manufactured in a free industrial zone.

(1) Goods manufactured within a free industrial zone shall not be taken out of such zone except:

(a) for export; or

(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) [Deleted by Act 557]

(3) [Deleted by Act 557]

(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 PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-8A. Declaration to give full and true account.

Any person who makes any declaration under this Act or any regulations made thereunder for the purpose of obtaining approval from the proper officer of customs or proper officer of the Authority shall give a full and true account relating to:

(a) the number and description of the packages;

(b) the description of the goods;

(c) the weight, measure or quantity of the goods;

(d) the value of all of the goods; and

(e) the country of origin of the goods.

8B PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-8B. Goods unaccounted for.

(1) Where in any shop or warehouse, or other building, place or premises in a free zone the quantity of any goods which ought to be kept there is found by a proper officer of customs to be short and the deficiency is not accounted for to the satisfaction of such officer, the owner of such goods or the operator of such shop or warehouse, or other building, place or premises shall, until the contrary is proved, be deemed to have illegally removed such goods from the free zone into the principal customs area, and shall, until the contrary is proved, be deemed to have knowledge of the removal.

(2) Where the goods deemed illegally removed from the free zone into the principal customs area under subsection (1) are subject to taxes, duties or payment under any written law, the owner of such goods or the operator of such shop or warehouse, or other building, place or premises shall be liable to pay to the proper officer of customs such taxes, duties or

9 PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-9. Penalty.

(1) Any person who contravenes section 5, 6A or 8 shall be guilty of an offence and shall, on conviction:

(a) for the first offence, be liable to a fine of not less than ten times the value of the goods or fifty thousand ringgit, whichever is the greater amount, and of not more than twenty times the value of the goods or five hundred thousand ringgit, whichever is the greater amount, or to imprisonment for a term not exceeding five years or to both; and

(b) for a second offence or any subsequent offence, be liable to a fine of not less than twenty times the value of the goods or one hundred thousand ringgit, whichever is the greater amount, and of not more than forty times the value of the goods or one million ringgit, whichever is the greater amount, or to imprisonment for a term not exceeding seven years or to both.

(2) If the value of the goods under subsection (1) cannot be ascertained, the penalty

10 PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-10. Activity.

(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, from time to time, by notification in the Gazette add to, alter or amend the First and the Second Schedules.

(3) Notwithstanding anything to the contrary in the any written law, the Minister may allow any activity to be carried out in a free zone subject to such conditions as he may deem fit to impose.

10A PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-10A. Record of activity.

(1) Every person carrying out any activity in a free zone who has possession of documents and records pertaining to the activity of importation, exportation or manufacturing of goods, shall preserve for a period of seven years all documents and records relating to such activity.

(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.".

11 PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-11. Goods permitted into a free industrial zone.

(1) Subject to this Act goods of any description which would be used directly for the manufacture of other goods or goods manufactured in any part of the principal customs area which are meant for export may be brought into a free industrial zone.

(2) The Minister may, in any particular case, allow goods, other than those referred to in subsection (1), to be brought into a free industrial zone for any activity as he may approve and subject to such conditions as he may deem fit to impose.

12 PART II ACTIVITIES PERMITTED WITHIN A FREE ZONE-12. Goods permitted into a free commercial zone.

(1) Subject to subsection (2) goods of any description may be brought into a free commercial zone.

(2) The Minister may, by order, prohibit any goods or class of goods from being taken into a free commercial zone.

13 PART III SPECIFIC FUNCTIONS OF AUTHORITY-13. Authority to provide facilities.

(1) The Minister may require the Authority to provide and maintain or allow in a free zone such facilities as he may consider necessary for the proper and efficient functioning of such zone.

(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

(b) for such purpose as may be considered necessary by the Minister for the better admin

14 PART III SPECIFIC FUNCTIONS OF AUTHORITY-14. Authority may permit erection of private buildings, etc.

(1) The Authority may permit any person to erect such buildings and other structures within a free zone as may be required.

(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 zone upon such terms and conditions and for such period as the Authority may determine.

15 PART III SPECIFIC FUNCTIONS OF AUTHORITY-15. Entry and residence in a free zone.

(1) Subject to this Act no person shall enter or reside within a free industrial zone without the permission of the Authority.

(2) Any person who contravenes the provision of subsection (1) shall be guilty of an offence under this Act.

16 PART III SPECIFIC FUNCTIONS OF AUTHORITY-16. 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.

(3) The decision of the Minister shall be final and not be subject to review in any court.

17 PART III SPECIFIC FUNCTIONS OF AUTHORITY-17. Annual reports and accounts.

(1) The Authority shall prescribe the form and manner of keeping the accounts of a free zone.

(2) The Authority shall furnish to the Minister annually and at such other times as the Minister may direct, reports containing a full statement of all activities, operations, receipts and expenditure and such other information in respect of such zone as the Minister may require.

(3) The reports and information referred to in subsection (2) shall be in such form as the Minister may specify.

17A PART III SPECIFIC FUNCTIONS OF AUTHORITY-17A. Powers of enforcement, investigation and inspection.

For the purposes of this Act, a senior officer of customs shall have all the powers of a police officer of whatever rank as provided for under the Criminal Procedure Code [Act 593] in relation to enforcement, investigation and inspection, and such powers shall be in addition to the powers provided for under this Act and not in derogation thereof.

[17A. Ins. Act A1630:s.2]

17B PART III SPECIFIC FUNCTIONS OF AUTHORITY-17B. Additional powers.

(1) In addition to and without affecting the existing powers conferred under this Act, when escorting and guarding any person in custody, a proper officer of customs shall have all the powers of a police officer of the rank of Corporal and below and the powers of a prison officer of the rank of Sergeant and below under the Prison Act 1995 [Act 537].

(2) For the purposes of this Act:

(a) where an order, a certificate or any other act is required to be given, issued or done by an officer in charge of a Police District under any written law, such order, certificate or act may be given, issued or done by a senior officer of customs, and for such purpose, the place where the order, certificate or act was given, issued or done shall be deemed to be a Police District under his charge; and

(b) a proper officer of customs shall have all the powers conferred on an officer in charge of a police station under

18 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-18. Persons bound to give information.

(1) Every person required by a proper officer of customs to give information or to produce documents on any subject which it is such officer's duty to enquire into and which it is in such person's power to give or produce shall be bound to give such information or to produce such documents.

(2) When any information or document given or produced under subsection (1) is proved to be untrue or incorrect in whole or in part it shall be no defence to allege that the information or document or any part of the information or document was furnished inadvertently or without criminal or fraudulent intent, or was misinterpreted or not fully interpreted by an interpreter provided by the person who has given such information or produced such document.

19 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-19. Penalty for offences and otherwise provided for.

Every omission or neglect to comply with, and every act done or attempted to be done contrary to the provisions of this Act or any regulations made thereunder shall be an offence and in respect of any such offence for which no penalty is expressly provided, the offender shall be liable on conviction to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

20 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-20. Attempts and abetments.

Whoever attempts to commit any offence punishable under this Act or any regulations made thereunder or abets the commission of such offence shall be punished with the punishment provided for such offence.

20A PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-20A. Access to shop or warehouse, or other building, place or premises.

(1) Any senior officer of customs shall for the purposes of this Act at all times have full and free access to any shop or warehouse, or other building, place or premises in the free zone where any person carries on his activity.

(2) Where any senior officer of customs enters upon any shop or warehouse, or other building, place or premises in accordance with this section, he may:

(a) require any person to produce any goods, document or thing which relates to the person's activity and any documents and records which are required to be kept under section 10A;

(b) examine any goods, document or thing;

(c) seize and detain any goods, document or thing if in his opinion it may afford evidence of the commission of any offence under this Act or any regulations made thereunder;

(d) require any person to answer any question relating to any goods, document or thing;

(e) require any container, envelope

21 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-21. Issue of search warrant.

Whenever it appears to any Magistrate on information and after such enquiry as he may think necessary, that there is reasonable cause to believe that in any shop or warehouse, or other building, place or premises in a free zone, there are concealed or deposited any goods in respect of which an offence under the Customs Act 1967, the Excise Act 1976, 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 or warehouse, or other building, place or premises and there to search for and seize any 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;

[(a) Am. Act A1595:s.13]

(b) to

22 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-22. When search may be made without warrant.

Whenever it appears to any senior officer of customs that there is reasonable cause to believe that in any shop or warehouse, or other building, place or premises in a free zone, there are concealed or deposited any goods in respect of which an offence under the Customs Act 1967, the Excise Act 1976 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 likely to be removed, such officer may exercise in, upon and in respect of such shop or warehouse, or other building, place or premises all the powers mentioned in the said section 21 in as full and ample a manner as if he were authorised so to do by warrant under issued that section.

23 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-23. Officers of customs may stop and search conveyances.

(1) Any officer of customs may stop and examine any vehicle in a free zone for the purpose of ascertaining whether any goods which may form the subject of an offence under the Customs Act 1967, the Excise Act 1976, the Sales Tax Act 1972, the Service Tax Act 1975 or this Act or under any regulations made 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 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-23A. Access to recorded information or computerised data.

(1) Any officer of customs exercising his powers under sections 20A, 21, 22 and 23 shall be given access to any recorded information or computerised data, whether stored in a computer or otherwise.

(2) In addition, an officer of customs exercising his powers under sections 20A, 21, 22 and 23:

(a) may inspect and check the operation of any computer and any associated apparatus or material which he has reasonable cause to suspect is or has been used in connection with that information or data; and

(b) may require:

(i) the person by whom or on whose behalf the officer of customs has reasonable cause to suspect the computer is or has been so used; or

(ii) the person having charge of, or is otherwise concerned with, the operation of the computer, apparatus or material,

to provide him with such reasonable assistance as he may require for th

24 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-24. Power to open packages and examine goods.

Any proper officer of customs may in a free zone examine any goods which are being taken into or being removed from a free zone or intended to be taken into or removed from a free zone and for the purpose of such examination direct the same to be brought to a customs office or a customs station and may open any package or receptacle.

25 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-25. Search of persons entering or leaving a free zone.

Any person landing, or being about to land, or having recently landed in a free zone, from any vessel or aircraft, 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, if 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 officer to a customs office 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

26 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-26. Seizure of goods subject of an offence.

(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 1972, the Service Tax Act 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 any such law, together with any receptacle, baggage, package, vehicle, vessel (not exceeding one hundred 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, vehic

27 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-27. Return or disposal of movable property.

(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; or

(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 proper

28 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-28. Powers of arrest.

(1) 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 Act 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 offence against the Customs Act 1967, the Excise Act 1976, the Sales Tax Act 1972, 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:

Provided that no female shall be searched except by

29 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-29. 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.

(2) No officer 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.

(3) No person who has been arrested by an officer of customs shall be released except on his own bond or on bail or under a special order in writing by a Magistrate or a senior officer of customs.

30 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-30. [Deleted].

[Deleted by Act A1113 -Prior text read -" 30. Who may prosecute. Prosecution in respect of offences committed under-(a) sections 5, 6A and 8 may be conducted by a senior 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." ]

30A PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-30A. Obligation of secrecy.

(1) Except as provided under section 31, the name and address of an informer and the substance of the information received from an informer shall be kept secret and shall not be disclosed by any proper officer of customs or any person who in the ordinary course of his duties comes into possession of or has control of or access to such information to any person except the designated officer of customs authorised by the Director-General.

(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding five years or to both.

[Ins. Act A1113]

30B PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-30B. Evidence of agent provocateur admissible.

(1) Notwithstanding any rule of law or the provisions of this Act or any other written law to the contrary, no agent provocateur shall be presumed to be unworthy of credit by reason only of his having attempted to abet or abetted the commission of an offence by any person under this Act if the attempt to abet or abetment was for the sole purpose of securing evidence against such person.

(2) Notwithstanding any rule of law or the provisions of this Act or any other written law to the contrary, and that the agent provocateur is an officer of customs or a police officer whatever his rank, any statement, whether oral or written, made to an agent provocateur by any person who subsequently is charged with an offence under this Act shall be admissible as evidence at his trial.

[30B. Ins. Act A1630:s.4]

31 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-31. Protection of informers from discovery.

(1) Except as hereinafter provided, no witness in any civil or criminal proceedings conducted pursuant to this Act shall be obliged or permitted to disclose the 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 discovery.

(2) If any book or document which is in evidence or liable to inspection in any civil or criminal 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 insofar only as may be necessary to protect the informer from discovery.

(3) If on the trial for any offence against this Act or any regulations made thereunder the court, after full enquiry into the case, believes that the informer wilfully made in his complaint a material statement which he knew or believed to b

32 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-32. Offence by bodies of persons and by servants and agents.

(1) Where an offence against this Act or any regulations made thereunder has been committed by a company, a firm, a society, an association or other body of persons, any person who at the time of the commission of the offence was a director, manager, secretary or other similar officer of the company, society, association or other body of persons, a partner or manager of the firm, or such other person purporting to act in such capacity or such person having charge or control of the company, firm, society, association or other body of persons shall be deemed to be guilty of 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.

[Am. Act A1113 -Prior text read -" Where an offence agai

33 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-33. Compounding of offences.

(1) Any senior officer of customs may, with the written consent of the Public Prosecutor, compound any offence committed by any person under this Act and prescribed by the Minister to be a compoundable offence by making a written offer to the person suspected of committing the offence to compound the offence on payment to the Director General of an amount of money not exceeding fifty per centum of the amount of the maximum fine for that offence within the time specified in the offer.

(2) An offer under subsection (1) may be made at any time after the offence has been committed, but before any prosecution for it has been instituted, and if the amount specified in the offer is not paid within the time specified in the offer or within any extended period as the Director General may grant, prosecution for the offence may be instituted at any time after that against the person to whom the offer was made.

(3) Where an offence has been compoun

34 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-34. Protection of Government from liability.

The Government or the Authority, as the case may be, shall not be liable to make good any loss sustained in respect of any goods by fire, theft, damage or any 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.

35 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-35. Protection of officers of customs from liability.

No officer of customs or other person employed by the Government in connection with the customs shall be liable to make good any loss sustained in respect of 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.

36 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-36. No costs or damages shall be recoverable unless seizure is without reasonable or probable cause.

No person shall in any proceedings before any court in respect of the seizure of any goods seized in exercise or the purported exercise of any power conferred by this Act be entitled to the cost of such proceedings or to any damages or other relief except an order for the return of such goods or the payment of their value unless such seizure was made without reasonable or probable cause.

37 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-37. Conviction under other written law.

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.

38 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-38. Goods liable to forfeiture.

All goods seized under this Act shall be liable to forfeiture.

39 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-39. Court to order forfeiture and disposal of goods seized.

(1) An order for the forfeiture or for the release of anything liable to forfeiture under the provisions of this Act shall be made by the Court before which the prosecution with regard thereto has been held, and an order for the forfeiture of goods shall be made if it is proved to the satisfaction of the Court 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 (

40 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-40. Goods seized in respect of which there is no prosecution.

(1) If there be no prosecution with regard to any goods seized under this Act, such goods shall be taken and deemed to be forfeited at the expiration of one calendar month from the date of seizure unless a claim 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 g

41 PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-41. Goods seized may be delivered to the owner or other person.

The Minister may, upon application made to him in writing through the Director-General, order any goods seized under this Act, whether forfeited, or taken and 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.

41A PART IV OFFENCES, PENALTIES, SEARCH, SEIZURE, ARREST AND PROVISIONS AS TO TRIALS AND PROCEEDINGS-41A. Recovery of duty or tax as a civil debt.

(1) Without prejudice to any other remedy, any tax, duty or payment payable under this Act may be recovered as a civil debt due to the Government of Malaysia, or where the customs duty is a duty of a category assigned to the State by Article 112C of the Federal Constitution, to the Government of the State.

(2) In any proceedings to recover any other remedy, any tax, duty or payment under subsection (1), the production of a certificate signed by the Director General:

(a) stating that any other remedy, any tax, duty or payment shown in the certificate as payable, in any assessment or notice made under this Act from a person named in the certificate; and

(b) giving the address of the person and purporting to be a copy of or an extract from any notice of assessment,

shall be conclusive evidence of any other remedy, any tax, duty or payment as payable in any assessment or notice and shall be suffici

42 PART V MISCELLANEOUS PROVISIONS-42. Vessel in relation to a free zone.

(1) Any vessel tied alongside the wharf of a free zone shall be deemed to be within such free zone.

(2) Any ship to ship transfer within the port limits of a free zone shall be deemed to have been done within such zone.

[Ins. Act A924]

42A PART V MISCELLANEOUS PROVISIONS-42A. Movement of goods into and from a free zone by sea.

(1) No goods shall be brought into, or be loaded or water-borne to be loaded to be taken out from, any free zone by sea:

(a) except at a legal landing place; and

(b) until permission to do so has been received from the proper officer of the Authority.

(2) Except with the permission of the proper officer of the Authority, no such goods, after having been landed or unshipped, shall be transhipped.

42B PART V MISCELLANEOUS PROVISIONS-42B. Movement of goods into and from a free zone by air.

No goods shall be brought into, or be taken out from, any free zone by air except at a customs airport.

42C PART V MISCELLANEOUS PROVISIONS-42C. Movement of goods into and from a free zone by road or rail.

No goods shall be brought into, or be taken out from, any free zone by road or rail except at prescribed places of import or export and, where a route has been prescribed, by such route.

43 PART V MISCELLANEOUS PROVISIONS-43. Proper officer of customs may take samples.

(1) The proper officer of customs may at any time take samples of any goods to ascertain whether they are 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.

44 PART V MISCELLANEOUS PROVISIONS-44. 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.

45 PART V MISCELLANEOUS PROVISIONS-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 detention of cases of smuggling or of offences under this Act, or in connection with any seizure made under this Act.

46 PART V MISCELLANEOUS PROVISIONS-46. Appeal from decision of the Authority or the Director-General.

Where it is provided in this Act or any regulations made thereunder that the decision on any matter rests with the Authority or the Director-General, then unless it is specifically provided that such decision is at the absolute discretion of the Authority or the Director-General, any person aggrieved by such decision may appeal to the Minister.

47 PART V MISCELLANEOUS PROVISIONS-47. Power to make regulations.

The Minister may make regulations as may be necessary or expedient for giving full effect to the provisions of this Act or the carrying out of the purposes of this Act.

48 PART V MISCELLANEOUS PROVISIONS-48. Power to delegation.

The Minister may, in relation to a free zone, delegate to any person all or any of his powers under this Act, except the power under section 10(2) and section 47.

48A PART V MISCELLANEOUS PROVISIONS-48A. Power to extend period.

Where, by this Act, a period is specified within which an act or thing is to be done by a person, and the Minister is satisfied that the act or thing could not be completed in that period due to the occurrence of public emergency or public health crisis, the Minister may, upon such terms and conditions as the Minister thinks fit, extend the period for the completion of the act or thing before the expiration of the period.

[Ins. by Act A1677:s2]

48B PART V MISCELLANEOUS PROVISIONS-48B. Power to modify terms and conditions.

(1) Where terms and conditions are imposed pursuant to this Act, the Minister may, on the advice of the Director General, from time to time modify the terms and conditions for the purpose of carrying out the objects of this Act.

(2) Before modifying the terms and conditions, notice must be given to the person bound by the terms and conditions stating:

(a) the terms and conditions as modified; and

(b) the date the terms and conditions as modified take effect.

(3) The modified terms and conditions shall not take effect in less than fourteen days from the date the notice is issued under subsection (2).

(4) Where the terms and conditions were initially imposed by the Director General or Authority pursuant to this Act, the terms and conditions as modified by the Minister shall be deemed to have been imposed by the Director General or Authority, as the case may be.

(

49 PART VI AMENDMENTS AND REPEAL-49. Amendments and repeal.

The Acts specified in the first column of the Third Schedule are repealed or amended, as the case may be, to the extent shown in the second column of the same Schedule.

50 PART VI AMENDMENTS AND REPEAL-50. Free trade zone deemed to be free industrial zone.

Any free trade zone declared under section 3 of the Free Trade Zones Act 1971, and which is still in force immediately before the commencement of this Act, shall be deemed to be a free industrial zone declared under section 3 of this Act until revoked by the Minister.

51 PART VI AMENDMENTS AND REPEAL-51. Minister may revoke any declaration or order.

The Minister may revoke any declaration or order made under this Act or any written law repealed by this Act in respect of any free zone:

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.