329 - FINANCE (NO. 2) ACT 1986

M DESEDTO LAWS OF MALAYSIA Act 329 FINANCE (No. 2) ACT 1986 29th December 1986 Date of Royal Assent Date of publication in 31st December 1986 Gazette . Pesnohjayn Penvemak Undan Commiss1r o aw Revisioa) Malay.a 3 LAWS OF MALAYSIA Act 329 FINANCE (No. 2) ACT 1986 ARRANGEMENT OF SECTIONS CHAPTER I PRELIMINARY Section 1 Short title and commencement. 2. Amendment of Acts. CHAPTER II AMENDMENTS TO THE CUSTOMS ACT 1967 3. Deietion of sections 146, 147, 148, 149, 150, 151, 152 and 153. 4 Amendment of section 154. 5. New sections 163A, 1638, 163c, 163D, 163E. 163F and 163G. CHAPTER III AMENDMENTS TO THE SALES TAX ACT 1972 Amendment of section 72. 6. 7. Deletion of sections 81 and 82. 8. New sections 83, 84, 85, 86, 87, 88, 89 and 90. CHAPTER IV AMENDMENTS TO THE EXCISE ACT 1976 9. New sections 91A. 918, 9Ic and 91D. CHAPTER V AMENDMENTS TO THE SERVICE TAX ACT 1975 10. Amendment of section 1. Amendment of section 2. 11. LAWS OF MALAYSIA Act 329 FINANCE (No. 2) ACT 1986 An Act to amend the Customs Act 1967, the Sales Tax ct 1972, the Excise Act 1976 and the Service Tax Act 1975. 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: CHAPTER I PRELIMINARY 1. This Act may be cited as the Finance (No. 2) Act short tite 1986 and shall come into effect on the 1st January 1987. and com mencement. 2. The Customs Act 1967, the Sales Tax Act 1972. the Amendment Excise Act 1976 and the Service Tax Act 1975 are a amended respectively in the manner specified in Act 64. Chapters II, III, IV and V respectively. Act 176. Act 151. CHAPTER II AMENDMENTS TO THE CUSTOMS ACT 1967 3. The Customs Act 1967, which in this Chapter is Deletions of referred to as "the principal Act'"', is amended by sections 146 147, 148. 149 deleting sections 146, 147, 148, 149, 150, 151, 152 and is0. 1si, 152 153. and 153. Act 235. 4. Section 154 of the principal Act is amended by Amendment substituting for the words "and Penang" the words ot section 154 and Langkawi" in the interpretation of "principal customs area'". ICap. I1, S. 5] 6 ACT 3299 e sections . The principal Act is amended by inseriing after Fart I i6 h 3 3 A c. . 1 16 6 3 B d . AIX the following new Part XIXA and new sec0ons 163A, 163B, 163c, 163», 163E, 163F and 1h3G: Ih3E. 163r and 163G PART XIXA SPECIAL PROVISIONS DEALING WITH LANGKAWI Interpre 163A. In this Part. unless the context tation otherwise requires "Langkawi" means the Langkawi Island and all adjacent islands iying ncarer to Langkawi Island than to the mainland: "principal customs area" means Malaysia exclusive of Labuan and Langkawi. Customs1638. (1) Notwithstanding anything to the duties contrary contained in this Act- relating to Langkawi. (a) no import duty shall be payable upon any goods imported into Langkawi, other than the following: (i) petroleum and petroleum products; and (ii) any goods which the Minister may from time to time declare by order published in the Gazette; (b) no export duty shall be payable upon any goods exported from Langkawi, other than any goods which the Minister may from time to time declare by order published in the Gazette; (c) import duty shall be payabie upon all dutiable goods ransported to the principal customsS ärea trom Langkawi as if such transportation to the principal customs area were importation into Malaysia; Cap. II, S. 51 FINANCE (No. 2) 1 (d) export duty shall be payable upon all dutiable goods transported from the principal customs area to Langkawi to all intents as if such transportation from the principal customs area were export from Malaysia: and (e) the Minister may by order. prescribe the meaning of the word "value in relation to goods transported from Langkawi to the principal customs (2) Subsections (2), (3). (4). (5) and (6) of section 11 shall apply to any order made by the Minister under paragraph (a) (ii) or (b) of subsection (1). (3) Nothing in this section shall render inapplicable to Langkawi any other customs dutywhich be fixed by the Minister under may subsection (1) of section 11. 163c. Where goods transported Trans are portation of goods (a) from Langkawi to the principal customs to or from area; or Langkawi Irom or to (b) from the principal customs area to the princi pal customs Langkawi. area. the provisions of this Act, other than sections 81,82, 83. 84. 85, 86 and 87 thereof, shall with such modifications and adaptations as may be necessary, apply as if such goods were imported into, or as the case may be, exported from, the principal customs area from or to a place outside Malaysia, and without prejudice to the above generality, the provisions of Part XII shall apply to goods transported to or from Langkawi from or to the principal Customs area and to persons and vehicles transporting such goods as if Langkawi were aa place outside Malaysia. ICap. I1-I1, S. 5-6] 8 ACT 3299 Declara- T63D. The person in charge of any vessel or ton dircraft on which goods are transported from r g t o e m d s t f r r a o n m s Langkawi to the principal customs are i a n sh th al e LangkawI make a declaration substantially i p n ri t n c t i h p e a C l prescribed form giving particulars of the customN goods transported in such vessel or aircraft. arca 163E. Except for the purpose of section 48. Dutiahle goods to any dutiable goods, other than petroleum and t b o e h d e e e n m O e n d petroleum products, and other goods declared dutiable by the Minister under paragraph (a) (11) of L w a h n il g e k a in w n i. Suosection (1) of section 163B or deemed to have been declared by the Minister under that section, shall while in Langkawi, be deemed to be non-dutiable goods and the provisions of this Act shall be construed acordingly. Collec- 163F. In making regulations under section tion of 142, the Minister may provide for the duties in collection in Langkawi of the customs duties Langkawi. payable in respect of goods transported or about to be transported from or to Langkawi to or from the principal customs area. Applica- 1636. The provisions of Part X which deals tion of with drawback shall apply to goods other than Part X to goods trans- those specified under paragraph (a) (i) of ported to subsection (1) of section 163B and goods Langkawi. declared by the Minister under paragraph (a) (11) of subsection (1) of section 163B or deemed to have been declared by the Minister under that section, transported from the principal customs area to Langkawi as if such goods had been exported.". CHAPTER III AMENDMENTS TO THE SALFS TAX ACT 1972 o A f m se e c n ti d o m n e 7 n 2 t . C 6. h a S p e t c e t r i on is 72 r e o f f e r t r h e e d Sales Tax Act 1972, which in this Act 64. amended by inserting to a ft a e s r " th t e h e wo p r r d in c " ip L a a l bu A an ct " " , is words and Langkawi" the in the interpretation "principal customs area". of Cap. III, S. 7-8 FINANCE (No. 2) 9 7. The principal Act is amended by deleting sections 81 Deletion of and 82. sections 8I and 82. 8. The principal Act is amended by inserting after New sections section 82 the following new Part XVII and new *3. R4 5. 86. 87. 88. sections 83, 84, 85, 86, 87, 88, 89 and 90: 89 and 0. PART XVII SPECIAL PROVISIONS DEALING WITH LANGKAWI 83. In this Part, unless the context otherwise Inter pretation. requires Langkawi" means Langkawi Island and all adjacent islands lying nearer to Langkawi Island than to the mainland; "principal customs area" means the Federation exclusive of Labuan and Langkawi. 84. Notwithstanding anything to the contrary Sales tax on goods contained in this Act, no sales tax shall be imported payable upon any taxable goods imported into intoo r exported Langkawi or transported to Langkawi from from the principal customs area other than such Langkawi taxable goods, which the Minister may from trans ported to time to time declare by order published in the or from Gazette. Langkawi. 85. For the purpose of this Act goods Goods manufac manufactured in Langkawi are deemed to be tured goods manufactured outside the Federation. n Langkawi tob e goods manu factured outside the Federation. 86. Where goods are transported- Trans portation (a) from Langkawi to the principal customs of goods to or from area; or Langkawi from or (b) from the principal customs area to o the Langkawi, principal customs area. Cap. II, S. 8] 10 ACT 329 shall, with such the provisions of this Act as may be and adaptations modifications if such goods were apply as necessary, be, exported mported into, or as the case may from or to a Trom, the principal customs area and without place outside the Federatio g n e , nerality, the p p r r o e v ju is d i i o c n e s o to f P t a h r e t IX ab o sh v a e l l apply f ro to m g o o r o d to s transported to or from Langkawi and and to persons the principal customs area such goods as Vessels and aircraft transporting the place outside if Langkawi were a Federation. Decla 87. The person in charge of any vesse f l r o o m r transported rátion aircraft on which goods are shall of goods Langkawi to the principal customs area L t f r r a a o n n m g s k p a o w rt i e d p m r a e k sc e r a i b d e e d c l u ar n a d t e io r n t s h u e b s C ta u n s t t i o a m lly s i A n c th t e 1 f 9 o 6 rm 7 o as r pr t i h nc e ip al under any other laws in force for the time customs being giving particulars of the goods A ar c e t a 2 . 35. transported in such vessel or aircraft. 88. Any taxable goods, shall while in Taxable goods to Langkawi, be deemed to be non-taxable and be deemed the provisions of this Act shall be construed non-taxable while in accordingly: Langkawi Provided that the foregoing shall not apply in respect of any goods declared by the Minister to be taxable on importation into Langkawi. 89. In making regulations under section 61 of Collection the Act, the Minister may provide of taxes in Langkawi (a) for the collection in Langkawi of sales tax payable in respect of goods transported or about to be transported from or to Langkawi to or from the principal customs area; (b) for the limitation or restriction of vessels and aircraft which may be used to transport such goods; and [Cap. Ill-IV, S. 8-9] FINANCE (No. 2) 11 (c) for the licensing or control of persons or vessels or aircraft transporting such goods. 90. The provisions of section 29 shall apply to Appli cation of goods (other than any goods declared by the Section 299 Minister to be taxable on importation into to goods ransported Langkawi) transported from the principal to Langkawi customs area to Langkawi as if such goods had been exported or re-exported, as the case may be.". CHAPTER IV AMENDMENTS TO THE EXCISE ACT 1976 9. The Excise Act 1976 is amended by inserting after New sections section 91, the following new Part XVa and new 91A. 91s, 91c and 91D. sections 91a, 91B, 91c and 91lD: Act 176. PART XVA SPECIAL PROVISIONS DEALING WITH LANGKAWI 91A. In this Part, unless the context otherwise Interpre tation. requires "Langkawi" means the Langkawi Island and all adjacent islands lying nearer to Langkawi Island than to the mainland. 91B. The provisions of this Act shall not apply Dutiable goods in to goods manufactured in Langkawi, other Langkawi. than the following: i) petroleum and petroleum products; and (ii) any other goods which the Minister from time to time declare by order may published in the Gazette. Cap. IV.V, S. 9-11] 12 ACT 329 Goods 91c. Goods subject to excise duty, other than manu those referred to in section 918, when factured in Langkawi manufactured outside the Federation and shall be when moved from Langkawi to the other deemed to territories in the Federation shall be deemed be manu- factured to be import into those territories and the outside the Federation. provisions of the Customs Act 1967 shall Act 235 apply. Goods 91D. Goods subject to excise duty, other than manu those referred to in section 91B, manufactured factured in other in other territories of the Federation when terntories moved to Langkawi shall be deemed to be of the Federation export from such territories to a place outside shall be the Federation for the purpose of sections 19 deemed to and 28 (c).". be export when moved to Langkawi. CHAPTER V AMENDMENTS TO THE SERVICE TAX ACT 1975 Amendment 10. Section 1 of the Service Tax Act 1975, which in this o A f c s t e c 1 t 5 i 1 o . n 1. Chapter is referred to as "the principal Act", is amended by inserting after the word "Malaysia" the words", excluding Langkawi" in subsection (1). o A f m se e c n t d io m n e n 2 t . i 1 n 1 s . er S ti e n c g ti on a ft 2 e r of t he th e in p te ri r n p c r i e p t a a l t io A n ct of is " a g m o e o n d d s e " d th b e y following new interpretation of "Langkawi": Langkawi" means Langkawi Island and all adjacent islands lying nearer to Langkawi Island than to the mainland;" DICETAK O1.EH HA K J E I T M UA O D K E P N H E G I N A A G R N A R S P A H I H R A I M N P T S t: A R U C H D E D T P I A A N K D , A A J. N S J . l D N H E . B G . A S D R .M I A SE . , T M . K . B U E S A R . L M A 1 . S 9 I . 8 . . L 6 'M S. P M UR .P .. K.M.N., P.I.S.. Harga: S1.20