Smugglers getting craftier

Press conference by new Customs department of Malaysia director-general Datuk Subromaniam Tholasy in Putrajaya.MOHD SAHAR MISNI/The STAR

PUTRAJAYA: Poison in a soup can. Candy-wrapped explosives. Daggers inside cereal boxes. These are how illegal goods may be coming into the country.

Crafty importers are taking advantage of e-commerce by concealing prohibited items in these edibles, Customs director-general Datuk Subromaniam Tholasy told Sunday Star.

“Drugs are also smuggled via mail and express parcels,” he said.

“It’s not a question of them being smart. People try lots of ways to hood­wink us. But we have scanning machines at points of entry and our officers know what to look out for.”

Subromaniam said besides misdeclaration, the latest modus ope­ran­di of people trying to smuggle prohibited items was by buying online.

They include hiding the illegal items in spare parts, document bags and electrical items like emergency lights and water heaters.

Prohibited and restricted imports are listed on www.customs.gov.my/en/tp/pages/tp_ie.aspx.

The department saw a whopping 54% spike in parcels checked last year compared to 2015, thanks to the popularity of online shopping.

Last year, 65,669 parcels were checked – 22,956 more than the previous year. This year, in January and February alone, the number was 8,704.

With the Digital Free Trade Zone (DFTZ), a surge in the number of parcels coming into the country is expected.

“The Customs Department is the main agency that’s directly involved in DFTZ,” said Subromaniam.

He said the department would do whatever it could to facilitate the DFTZ.

“DFTZ is an excellent move by the Government. We’re ready. We will have an integrated system of equipment, technology and risk management in place. And we’re working with Malaysia Digital Economy Cor­po­ration and Alibaba founder Jack Ma to expedite shipments,” he said.

On March 24, Transport Minister Datuk Seri Liow Tiong Lai said that the initial phase of DFTZ with a centralised Customs clearance, warehousing and e-fulfilment facilities would be located on the 17.5ha site of the former Low-Cost Carrier Terminal (LCCT).

He said DFTZ would be a regional logistics hub to cater for the e-commerce industry.

“When DFTZ is fully developed by 2025, the e-fulfilment hub is anticipated to handle and move up to US$65bil (RM287bil) worth of goods around the Asean region,” Liow said.

Subromaniam said that the de­­part­ment had the experience with online retail and was previously operating at the former LCCT.

Unlike direct imports, most parcels and consignments coming into the country would have short turnover times as the majority are transit products requiring minimal Customs control, he said.

“It’s not a big deal except that this time around, it’ll be on a bigger scale because we’ll be the hub for the global market.

“Goods from around the world come here, and are sent elsewhere or stored here for value-added acti­vities to take place. For example, imported components from China and Australia are assembled and exported to India,” he said.

He said Malaysia’s technology and infrastructure such as storage facilities were competitive compared to Singapore where land is expensive.

DFTZ was launched by Prime Mi­­nister Datuk Seri Najib Tun Razak and Ma on March 22.