Customs

1

LAWS OF MALAYSIA

REPRINT

Act 235

CUSTOMS ACT 1967

Incorporating all amendments up to 1 January 2006

PUBLISHED BY

THE COMMISSIONER OF LAW REVISION, MALAYSIA

UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968

IN COLLABORATION WITH

PERCETAKAN NASIONAL MALAYSIA BHD

2006

2

CUSTOMS ACT 1967

... ... ... ... ... ... 1967 (Act No. 62 of

First enacted

1967)

Revised

... ... ... ... ... ... ... 1980 (Act 235 w.e.f.

17 July 1980)

PREVIOUS REPRINT

First Reprint

...

...

...

...

...

2000

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LAWS OF MALAYSIA

Act 235

CUSTOMS ACT 1967

ARRANGEMENT OF SECTIONS

PART I

PRELIMINARY

Section

1.

Short title

2.

Interpretation

PART II

APPOINTMENT AND POWERS OF OFFICERS

3.

Appointment of Director General, Deputy Director General and other

officers

4.

Appointment of Customs Officers

5.

Investment of powers of senior officer of customs by Director General

6.

Officers of customs to be public servants

7.

Officers of customs exempted from serving as jurors or assessors

8.

Powers of District Officers, Assistant District Officers and Police Officers

8A. Minister may prescribe uniforms, etc.

9.

Badges and authority cards to be produced

9A. Unlawful use, possession, etc., of uniform, etc.

10.

Persons employed on customs duty to be deemed proper officers of

customs for such service

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PART III

LEVYING OF CUSTOMS DUTIES

Section

11.

Power of Minister to fix customs duties by orders to be approved by

the Dewan Rakyat

12.

Power to fix value

13.

Classification and valuation by proper officer of customs

13A. Payment of customs duty under protest

13B. Director General to determine questions on classification and valuation

14.

Powers of Minister to exempt

14A. Minister may remit customs duties

15.

Reimposition of duty

16.

Return of duty or other charges overpaid or erroneously paid

17.

Payment of duty, etc., short paid or erroneously refunded

17A. Recovery of customs duties from persons leaving Malaysia

18.

Remission of import duty on goods lost, damaged or destroyed before

removal from customs control

19.

Calculation of customs duty

20.

Calculation of export duty

21.

Time of importation and exportation when duty is imposed or repealed

22.

Questions in respect of goods deemed to be dutiable

22A. Certificate of Director General admissible in evidence

22B. Recovery of customs duty as a civil debt

22C. Joint and several liability of director, etc.

PART IV

IMPORTATION AND EXPORTATION

23.

Time and place of landing goods inwardly

24.

Places of landing of goods imported by air

25.

Time and place of import by rail or road

26.

Time and place of loading goods for export by sea

27.

Transportation by sea of goods liable to export duty to another customs

port

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Section

28.

Time and place of export by rail or road

29.

Exportation by air

29A. Importation or exportation by pipeline

30.

Exemption from provisions of sections 23, 24, 25, 26, 28 and 29

31.

Power of Minister to prohibit imports or exports

32.

Transportation by sea of goods of a class the export of which is prohibited

33.

Saving in respect of certain navigable rivers

34.

Power of Director General to require security

35.

Presumption as to export

PART V

PORT CLEARANCES

36.

Arriving vessels, unless exempted, to be reported, and produce papers

37.

No vessel unless exempted, to sail without port clearance

38.

Master to attend and answer questions when applying for port clearance,

and deliver documents

39.

Vessels exempted from requiring port clearance

40.

Master of vessel not sailing within 48 hours of port clearance to report

to proper officer of customs

41.

When clearance may be refused

42.

Application to aircraft

PART VI

GENERAL PROVISIONS AFFECTING VESSELS IN

TERRITORIAL WATERS

43.

Master of vessel to obey signals from preventive vessels and instructions

by an officer of customs

44.

Hovering

45.

Goods unaccounted for to be deemed uncustomed

46.

Missing goods deemed to have been illegally landed

47.

Proper officer of customs may board vessel in a customs port

48.

Power to seal up and secure hatchways goods, etc., and use of ship's

stores

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Section

49.

Prohibition of carriage of dutiable goods in local craft

50.

Bulk not to be broken, etc.

51.

Application to aircraft

PART VII

MANIFESTS

52.

Master of arriving vessel to present inward manifest

53.

Provision for cases where all particulars are not known

54.

Person in charge of local craft to make declaration on arrival

55.

Correction to be made on completion of discharge

56.

Pilot or agent of arriving aircraft to present inward manifest

57.

Outward manifest of vessel to be presented

58.

Person in charge of local craft to make declaration before departure

59.

Pilot of departing aircraft to present outward manifest

60.

Station-master to produce railway invoices and waybills

61.

Local craft arriving at or leaving certain navigable rivers

62.

Saving in respect of exempted vessels and certain aircraft

PART VIII

WAREHOUSING

63.

Minister may establish customs warehouses

64.

Goods imported or exported from a collection station

65.

Licensed warehouse

65A. Manufacture and other operations in relation to goods in licensed

warehouse

65B. Liquidator of company to give notice of winding-up, and set aside duty

65C. Appointment of receiver to be notified to the Director General

65D. Licensing of duty free shop

65E. Licensing of inland clearance depot

66.

Dutiable goods to be deposited in a warehouse on arrival

67.

Warehouse deposit receipts

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Section

68.

Power to open and examine packages

69.

Detention of goods where doubt exists

70.

Protection of Government from liability

71.

Protection of officers of customs from liability

72.

Payment of warehouse rent

73.

Dangerous goods

74.

Government lien over goods deposited in a customs warehouse

75.

Removal of dutiable goods from a warehouse

76.

Landing of goods for transhipment

77.

Weighing and handling fees

PART IX

DECLARATION OF GOODS

A--Dutiable goods

78.

Declaration of dutiable goods imported

79.

Declarations to give a full and true account

80.

Declaration of dutiable goods to be exported

B--Non-dutiable goods

81.

Declaration of non-dutiable goods imported by sea or air

82.

Declaration of non-dutiable goods imported by rail

83.

Declaration of non-dutiable goods imported by road

84.

Declaration on non-dutiable goods exported by sea or air

85.

Declaration of non-dutiable goods exported by rail

86.

Declaration of non-dutiable goods exported by road

87.

Declarations to give a full and true account

87A. Provisional declaration of exported goods

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C--General Provisions

Section

88.

Goods which have been declared at a collection station exempted

89.

Saving provision

90.

Control of agents

91.

Person in charge of goods imported, etc., by road to be deemed agents

91A. Licensed carrier

92.

Declaration to be made in duplicate

PART X

DRAWBACK

92A. Definition of "re-export" in sections 93, 94 and 99

93.

Conditions under which drawback may be paid

94.

Declaration by claimant

95.

Drawback on destroyed goods

96.

Refund to visitors and owners of samples

97.

Relief from duty on goods temporarily imported

98.

Export and reimport of trade sample free of duty

99.

Drawback on imported goods used in manufacture or in packing

PART XI

MISCELLANEOUS PROVISIONS

100.

Documents to be produced on demand

100A. Records of imported goods

101.

Persons legally bound to give information

102.

Service of notices

103.

Baggage of passengers

104.

The proper officer of customs may take samples

105.

Packing of dutiable goods

106.

Addition or deduction of new or altered duties in the case of contract

Customs

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PART XII

INSPECTION, INVESTIGATION, SEARCH, SEIZURE

AND ARREST

Section

106A. Access to places or premises

106B. Power of investigation

107.

Magistrate may issue search warrant

108.

When search may be made without warrant

109.

Power to search vessels and aircraft

110.

Proper officer of customs to exercise powers of search

111.

Officers of customs may stop and search conveyances

111A. Power to set up roadblocks

111B. Access to recorded information or computerized data

112.

Power to open packages and examine goods

113.

Search of persons arriving in Malaysia

114.

Seizure of goods the subject of an offence

115.

Return or disposal of movable property

115A. Production of a certificate of an analyst, or a senior officer of customs,

or a person authorized by the Minister

116.

Powers of arrest

116A. Power to examine persons

116B. Admissibility of statements in evidence

116C. Procedure where investigation cannot be completed within twenty-four

hours

116D. Diary of proceedings in investigation

PART XIII

PROVISIONS AS TO TRIALS AND PROCEEDINGS

117.

(Deleted)

118.

Magistrate of the First Class to have full jurisdiction

119.

Burden of proof

120.

Proportional examination of goods seized to be accepted by courts

121.

Evidence of analysis may be given in writing

122.

Proof as to registration or licensing of vessels and conveyances in

Malaysia or Singapore

122A. Proof as to tonnage or build of a craft

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Section

122B. Proof as to accuracy of a compass radar, etc.

122C. Proof as to countervailing and anti-dumping duties payable

122D. Proof as to accuracy of a meter or other device for measuring petroleum

123.

Imprisonment for non-payment of fine

124.

Manner of seizure not to be enquired into on trial before court or on

appeal to High Court

124A. Obligation of secrecy

125.

Protection of informers from discovery

125A. Confidentiality of information

126.

Goods liable to seizure liable to forfeiture

127.

Court to order disposal of goods seized

128.

Goods seized or in respect of which there is no prosecution, or the

proceeds of sale thereof, are forfeited if not claimed within one month

129.

Goods or amount secured may be delivered or refunded to the owner

or other person

130.

Conviction under other law

131.

Compounding of offences

132.

No costs of damages arising from seizure to be recoverable unless

seizure without reasonable or probable cause

PART XIV

OFFENCES AND PENALTIES

133.

Penalty on making incorrect declarations and on falsifying documents

134.

Penalty on refusing to answer questions or on giving false information

135.

Penalty for various smuggling offences

136.

Penalty for assaulting or obstructing officers of customs and rescuing

goods

137.

Penalty for offering or receiving bribes

138.

Penalty for offences not otherwise provided for

139.

Attempts and abetments

140.

Offences by bodies of persons and by servants and agents

141.

Rewards

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PART XV

REGULATIONS

Section

142.

Power to make regulations

PART XVI

GENERAL

143.

Appeal from decision of Director General

143A. Appeal on valuation of imported goods

144.

Power of Director General to charge fees

145.

Forms to be used

PART XVII

SPECIAL PROVISIONS DEALING

WITH PENANG

146­153.

(Deleted)

PART XVIII

SPECIAL PROVISIONS DEALING

WITH LABUAN

154.

Interpretation

155.

Customs duties on goods imported into or exported from Labuan

or transported to or from Labuan from or to the principal customs

area

156.

Transportation of goods to or from Labuan from or to the principal

customs area

157.

Declaration of goods transported from Labuan to the principal

customs area

158.

Dutiable goods to be deemed to be non-dutiable while in Labuan

159.

Collection of duties in Labuan

160.

Application of Part X to goods transported to Labuan

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PART XIX

SPECIAL PROVISIONS DEALING WITH

SABAH AND SARAWAK

Section

161.

Agreements between Sabah and Sarawak relating to movement of goods

162.

Saving in respect of vessels entering territorial waters due to circumstances

beyond the Master's control or in respect of local craft from any other

place without clearance or manifest

163.

Time and manner of payment of duty in Sarawak

PART XIXA

SPECIAL PROVISIONS DEALING WITH

LANGKAWI

163A. Interpretation

163B. Customs duties relating to Langkawi

163C. Transportation of goods to or from Langkawi from or to the

principal customs area

163D. Declaration of goods transported from Langkawi into the principal

customs area

163E. Dutiable goods to be deemed to be non-dutiable while in Langkawi

163F. Collection of duties in Langkawi

163G. Application of Part X to goods transported to Langkawi

PART XIXB

SPECIAL PROVISION DEALING WITH THE

JOINT DEVELOPMENT AREA

163H. Movement of goods into or from Joint Development Area

163I. Customs duty payable on importation into or exportation from Joint

Development Area

PART XIXC

SPECIAL PROVISIONS DEALING WITH TIOMAN

163J. Interpretation

163K. Customs duties relating to Tioman

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Section

163L. Transportation of goods from or to Tioman to or from the principal

customs area

163M. Declaration of goods transported from Tioman to the principal

custom area

163N. Dutiable goods to be deemed to be non-dutiable while in Tioman

163O. Collection of duties in Tioman

163P. Application of Part X to goods transported to Tioman

PART XX

SINGAPORE PREVENTIVE VESSELS

164.

Interpretation

165.

Powers of master of Singapore preventive vessels

166.

How person arrested dealt with

167.

Offence

168.

Master and crew of Singapore preventive vessels to be public servants

PART XXI

REPEAL

169.

Repeal and saving

SCHEDULE

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Laws of Malaysia

ACT 235

Customs

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LAWS OF MALAYSIA

Act 235

CUSTOMS ACT 1967

An Act relating to customs.

[2 November 1967, P.U. 503/1967]

PART I

PRELIMINARY

Short title

1. (1) This Act may be cited as the Customs Act 1967.

(2) (Omitted).

Interpretation

2. (1) In this Act, unless the context otherwise requires--

"agent", in relation to a vessel includes chinchew and comprador;

"aircraft" includes any kind of craft which may be used for the

conveyance of passengers or goods by air;

"collection station" means a customs warehouse established in

Singapore under subsection 63(2);

"computer" has the meaning assigned thereto in section 3 of the

Evidence Act 1950 [Act 56];

"customs airport" means any place which has been prescribed

as a customs airport;

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"customs duty" means any import duty, export duty, surtax,

surcharge or cess imposed by or under this Act, any countervailing

duty or anti-dumping duty imposed by or under the Countervailing

and Anti-Dumping Duties Act 1993 [Act 504] and includes any

royalty payable in lieu of an export duty under any written law,

or a contract, lease or agreement to which the Federal Government

or the Government of any State is a party or to which such Government

has consented;

"customs port" means any port prescribed to be a customs port;

"customs warehouse" means a warehouse or other place established

by the Minister under subsection 63(1) for the deposit of dutiable

goods;

"denatured" means effectually rendered unfit for human

consumption to the satisfaction of the Director General;

"Director General" means the Director General of Customs and

Excise appointed under subsection 3(1);

"document" has the meaning assigned thereto in section 3 of the

Evidence Act 1950;

"dutiable goods" means all goods subject to the payment of

customs duty and on which such duty has not yet been paid;

"duty free shop" means any place licensed for the warehousing

and sale of dutiable goods free of duty under section 65D;

"electronic data interchange" means the transfer, from computer

to computer, of commercial and administrative transactions using

an agreed message standard to structure the data pertaining to a

transaction;

"export" with its grammatical variations and cognate expressions

means to take or cause to be taken out of Malaysia, by land, sea

or air or to place any goods in a vessel, conveyance or aircraft for

the purpose of such goods being taken out of Malaysia by land,

sea or air;

"export by air" includes exportation in any manner or by any

means by air;

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"export by road" includes exportation in any manner or by any

means by land, and includes, in particular, exportation through the

land by means of a pipeline;

"export by sea" includes exportation in any manner or by any

means by sea, and includes, in particular, exportation through the

sea by means of a pipeline;

"exporter" includes any person by whom any goods (including

goods transferred from an importing aircraft or ship) are exported

from Malaysia or supplied for use as aircraft's or ship's stores, and

also the owner, or any person acting on his behalf, and any person

who for customs purposes signs any document relating to goods

exported or intended for exportation or supplied or intended for

supply as aircraft's or ship's stores as aforesaid;

"Financial Authority" in relation to Sabah and Sarawak means

any person appointed by the Minister, by notification in the

appropriate Gazette, to exercise under the directions of the Minister

any function which the Minister is empowered or required by this

Act to exercise in Sabah or Sarawak;

"goods" includes animals, birds, fish, plants and all kinds of

movable property;

"hover" in the case of a vessel in territorial waters means to

linger without apparent lawful purpose, whether such vessel be

moving or not moving;

"import" with its grammatical variations and cognate expressions

means to bring or cause to be brought into Malaysia by land, sea

or air:

Provided that goods bona fide in transit, including goods for

transhipment, shall not, for the purpose of levy of customs duties,

be deemed to be imported unless they are or become uncustomed

goods;

"import by air" includes importation in any manner or by any

means by air;

"import by road" includes importation in any manner or by any

means by land, and includes, in particular, importation through the

land by means of a pipeline;

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"import by sea" includes importation in any manner or by any

means by sea, and includes, in particular, importation through the

sea by means of a pipeline;

"importer" includes and applies to any owner or other person

for the time being possessed of or beneficially interested in any

goods at and from the time of importation thereof until such goods

are duly removed from customs control;

"inland clearance depot" means a common-user inland facility

equipped with fixed installations and offering services for handling

and temporary storage of any kind of goods carried by land and

placed under customs control;

"intoxicating liquor" includes any alcohol, or any liquid

containing more than two per centum of proof spirit, which is fit

or intended to be or which can by any means be converted for use

as a beverage;

"in transit" means taken or sent from any country and brought

into Malaysia by land, sea or air (whether or not landed or transhipped

in Malaysia) for the sole purpose of being carried to another

country either by the same or another conveyance;

"Joint Development Area" has the meaning assigned thereto in

section 2 of the Malaysia-Thailand Joint Authority Act 1990;

"legal landing place" means any place which has been prescribed

as a legal place for the landing and shipping of goods;

"licensed carrier" means a person approved by the Director

General to operate vehicles by road for the carriage of any goods

in transit or any dutiable goods under this Act or under the Excise

Act 1976 [Act 176];

"licensed warehouse" means a warehouse or other place licensed

for the warehousing of dutiable goods under section 65;

"local craft" means any junk, tongkang, perahu, kumpit or other

similar type of vessel, and any steam or motor vessel under seventy-

five net registered tons;

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"manufacture" means:

(a) in the case of intoxicating liquors, distilling, brewing,

fermenting, bottling of intoxicating liquor, and includes

the addition of any substance (other than water) to any

intoxicating liquor and the blending, compounding and

varying of intoxicating liquors with intent that the

compound so formed shall be sold for human consumption,

but excluding any such compound prepared at the order

of the purchaser, and for his immediate consumption;

(b) in the case of tobacco, any process converting any raw

or leaf tobacco into tobacco fit for smoking, snuffing or

chewing, and includes the making of cigarettes from

manufactured tobacco;

(c) in the case of petroleum, refining, compounding and

includes the addition of any foreign substance; and

(d) in other cases, the conversion by manual or mechanical

means of organic or inorganic materials into a new product

by changing the size, shape, composition, nature or quality

of such materials and includes the assembly of parts into

a piece of machinery or other products, but does not

include the installation of machinery or equipment for

the purpose of construction;

"master" means any person (except a pilot or harbour master)

having for the time being control or charge of a vessel;

"Officer of customs" means:

(a) the Director General;

(b) any Deputy Director General of Customs and Excise

appointed under subsection 3(1);

(c) any Assistant Director General, Director, Senior Assistant

Director and Assistant Director of Customs and Excise

appointed under subsection 3(1);

(d) any Senior Superintendent, Superintendent or Assistant

Superintendent of Customs and Excise appointed under

subsection 3(4);

(e) any Chief Customs Officer, Senior Customs Officer or

Customs Officer appointed under section 4;

(f) any police officer;

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"owner" in respect of goods includes any person (other than an

officer of customs acting in his official capacity) being or holding

himself out to be the owner, importer, exporter, consignee, agent

or person in possession of, or beneficially interested in, or having

any control of, or power of disposition over, the goods;

"owner" in respect of a ship includes every person acting as

agent for the owner or who receives freight or other charges payable

in respect of the ship;

"Peninsular Malaysia" has the meaning assigned thereto in section

3 of the Interpretation Acts 1948 and 1967 [Act 388], and includes

the Federal Territory.

"petroleum" means any mineral oil or relative hydrocarbon in

its solid, liquid or gaseous form existing in its natural condition

and includes casing head petroleum spirit, bituminous shales, other

stratified deposits from which oil can be extracted commercially

and petroleum products obtained from the process of manufacture;

"pilot of an aircraft" means every person having or taking command

or charge of an aircraft;

"preventive vessel" means any vessel employed for the prevention

of smuggling or for any other purpose relating to the customs and

includes a vessel owned and employed for the prevention of smuggling

by the Government of Singapore;

"prohibited goods" means goods the import or export of which

his prohibited, either absolutely or conditionally by an order under

section 31 or by any other written law;

"proper officer of customs" means any officer of customs acting

in the fulfilment of his duties under this Act, whether such duties

are assigned to him specially or generally, or expressly or by

implication;

"road" includes any prescribed land route;

"sea" includes inland waters;

"senior officer of customs" means:

(a) the Director General;

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(b) any Deputy Director General of Customs and Excise

appointed under subsection 3(1);

(c) any Assistant Director General, Director, Senior Assistant

Director and Assistant Director of Customs and Excise

appointed under subsection 3(1);

(d) any Senior Superintendent, Superintendent or Assistant

Superintendent of Customs and Excise appointed under

subsection 3(4);

(e) any officer of customs invested with the powers of a

senior officer of customs under subsection 3(5) or

section 5;

(f) any police officer having the powers of a senior officer

of customs by virtue of section 8;

"sufferance wharf" means any place other than an approved

place of loading or unloading at which the senior officer of customs

may, in his discretion, and under such conditions and in such

manner as he may direct, either generally or in any particular case,

allow any goods to be loaded or unloaded;

"territorial waters" means the territorial waters of Malaysia;

"uncustomed goods" means goods in respect of which a breach

of the provisions of this Act or of any subsidiary legislation made

thereunder has been committed;

"value" in relation to imported goods means customs value as

determined under subsection 142(35B);

"value" in relation to goods to be exported means the price

which an exporter would receive for the goods calculated to the

stage where such goods are released by Customs at the place of

export;

(1A) For the purposes of this Act (other than section 31), a free

zone shall be deemed to be a place outside Malaysia.

In this subsection, the expression "free zone" has the meaning

assigned to it under section 2 of the Free Zones Act 1990

[Act 438].

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(2) For the purpose of this Act, goods shall be deemed to be

under customs control whilst they are deposited or held in any

customs or licensed warehouse, post office, or in any vessel, train,

conveyance, aircraft, pipeline or place from which they may not

be removed except with the permission of the proper officer of

customs.

PART II

APPOINTMENT AND POWERS OF OFFICERS

Appointment of Director General, Deputy Director General

and other officers

3. (1) There shall be appointed an officer to be styled the Director

General of Customs and Excise and such number of Deputy Directors

General, Assistant Directors General, Directors, Senior Assistant

Directors and Assistant Directors of Customs and Excise as may

be considered necessary for the purpose of this Act and any written

law relating to excise.

(2) The Director General shall be the Chief Officer of Customs

and shall have the superintendence of all matters relating to the

customs, subject to the direction and control of the Minister.

(3) The Deputy Directors General, Assistant Directors General,

Directors, Senior Assistant Directors and Assistant Directors shall

be subject to the general direction and supervision of the Director

General, and, subject thereto, shall have and exercise all powers

conferred on the Director General by or under this Act, other than

those conferred by sections 13B, 22 and 145 thereof.

(4) There shall be appointed so many Senior Superintendents,

Superintendents and Assistant Superintendents of Customs and

Excise as may be considered necessary for the purposes of this Act

and any written law relating to excise.

(5) The Minister may, by notification in the Gazette, invest any

officer of customs not being a senior officer of customs with all

or any of the powers of a senior officer of customs.

Customs

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Appointment of Customs Officers

There shall be appointed so many Chief Customs Officers,

4.

Senior Customs Officers, and Customs Officers as may be considered

necessary for the purposes of this Act.

Investment of powers of senior officer of customs by Director

General

5.  The Director General may by authorization in writing invest

any officer of customs not being a senior officer of customs with

all or any of the powers of a senior officer of custom for a period

not exceeding ninety days in respect of any one authorization.

Officers of customs to be public servants

All officers of customs shall be deemed to be public servants

6.

within the meaning of the Penal Code [Act 574].

Officers of customs exempted from serving as jurors or

assessors

7.  Notwithstanding anything to the contrary in any written law

no officer of customs shall be liable to serve as juror or assessor.

Powers of District Officers, Assistant District Officers and Police

Officers

8.  For the purpose of this Act, any District Officer or Assistant

District Officer in any district in which there is for the time being

no senior officer of customs, and all police officers not below the

rank of Inspector shall have and may exercise all the powers

conferred by this Act on senior officers of customs, and all police

officers below the rank of Inspector shall have and may exercise

all the powers conferred by this Act on officers of customs.

Minister may prescribe uniforms, etc.

8A.  The Minister may, by order published in the Gazette,

prescribe--

(a) uniforms and rank markings for any rank of officers of

customs; and

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(b) the authority card and badge to be carried by any rank

of officers of customs.

Badges and authority cards to be produced

9. (1) Every officer of customs when acting against any person

under this Act shall, if not in uniform, on demand declare his

office and produce to the person against whom he is acting such

badge or authority card as the Director General or, in the case of

a police officer, the Inspector General of Police, may direct to be

carried by such officers.

(2) It shall not be an offence for any person to refuse to comply

with any request, demand or order made by any officer of customs

acting or purporting to act under this Act if such officer is not in

uniform and refuses to declare his office and produce his badge

or authority card, on demand being made by such person.

(3) A badge or an authority card issued to an officer of customs

shall be the property of the Government and shall be surrendered

by such officer to the person appointed by the Director General

for that purpose when such officer ceases to be an officer of

customs or when instructed to do so.

Unlawful use, possession, etc., of uniform, etc.

9A.  Any person, not being an officer of customs, who unlawfully

wears, uses, possesses or displays otherwise than in the course of

a stage play or other theatrical performance, any prescribed uniform

or badge or authority card, or any dress having the appearance of

or bearing the distinctive marks of such uniform shall be guilty

of an offence under this Act.

Persons employed on customs duty to be deemed proper officers

of customs for such service

10.  Every person employed on any duty or service relating to the

customs by the orders or with the concurrence of the Director

General (whether previously or subsequently expressed) shall be

deemed to be the proper officer of customs for that duty or service;

and every act required by law at any time to be done by, or with

any particular officer nominated for such purpose, if done by or

with any person appointed by the Director General to act for such

particular officer, shall be deemed to be done by or with such

particular officer.

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PART III

LEVYING OF CUSTOMS DUTIES

Power of Minister to fix customs duties by orders to be approved

by the Dewan Rakyat

11. (1) The Minister may, from time to time, by order published

in the Gazette, fix the customs duties to be levied on any goods

imported into or exported from Malaysia and to be paid by the

importer or exporter, as the case may be.

(2) Any order made under subsection (1) shall, at the next

meeting of the Dewan Rakyat be laid on the table of the Dewan

Rakyat and shall, at the expiration of one hundred and twenty days

from being so laid or of such extended period as the Dewan Rakyat

may, by resolution, direct, cease to have effect if and in so far as

it is not confirmed by a resolution passed by the Dewan Rakyat

within the said one hundred and twenty days or, if such period has

been extended, within such extended period.

(3) Where an order ceases to have effect in whole or in part as

provided by subsection (2), then any customs duty levied in pursuance

of such order or, as the case may be, of such part thereof as ceases

to have effect shall, subject to subsection (4), be repayable to the

person from whom such duty was levied.

(4) Unless the Minister shall otherwise direct, no customs duty

repayable under subsection (3) shall be repaid, unless the person

entitled to such repayment makes a claim therefor to the Director

General within one year from the day on which the order ceases

to have effect in whole or in part as provided by subsection (2).

(5) Such claim shall be made in writing and shall contain such

particulars as the Director General may, by general or special

order, require.

(6) (Deleted by Act A921).

Power to fix value

12.  The Minister may, from time to time, by notification in the

Gazette, fix, for the purpose of the levy and payment of customs

duties, the value of any dutiable goods.

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Classification and valuation by proper officer of customs

13. (1) The proper officer of customs may, in respect of any

dutiable or uncustomed goods--

(a) determine the class of goods to which such dutiable or

uncustomed goods belong; and

(b) value, weigh, measure or otherwise examine, or cause to

be valued, weighed, measured or otherwise examined

such dutiable or uncustomed goods,

for the purpose of ascertaining the customs duty leviable thereon.

(2) When a valuation of any goods has been made by the proper

officer of customs, such valuation shall be presumed to be correct

until the contrary is proved.

Payment of customs duty under protest

13A.  Any person who is dissatisfied with a decision of a proper

officer of customs under subsection 13(1) as to whether any particular

goods are or are not included in a class of goods appearing in an

order made under subsection 11(1) or with the valuation, weighing,

measuring or examining of any goods may pay the customs duty

levied under protest.

Director General to determine questions on classification and

valuation

13B.  Where customs duty has been paid under protest, the proper

officer of customs shall, within thirty days of such payment being

made, refer any question as to classification or valuation of goods

to the Director General for his decision.

Powers of Minister to exempt

14. (1) The Minister may, by order, exempt, subject to such

conditions as he may deem fit to impose, any class of goods or

persons from the payment of the whole or any part of any customs

duty or any other prescribed fee or charge which may be payable.

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27

(2) The Minister may in any particular case--

(a) exempt any person from the payment of the whole or any

part of the customs duties or any other prescribed fees

or charges which may be payable by such person on any

goods; or

(b) direct the refund to any person of the whole or any part

of the customs duties or any other prescribed fees or

charges which have been paid by such person on any

goods,

and in granting such exemption or directing such refund, impose

such conditions as he may deem fit.

(3) Any goods in respect of which an exemption from the

payment of customs duties has been granted under subsection (1)

or (2) shall be deemed to be dutiable goods until the conditions,

if any, subject to which the exemption from duty was granted are

fulfilled and shall be liable to all other charges, not being customs

duties, to which they would be subject if no such exemption had

been granted.

Minister may remit customs duties

14A.  The Minister may, if he thinks it just and equitable to do

so, and subject to such conditions as he may deem fit to impose,

remit the whole or any part of the customs duties or any other

prescribed fees or charges payable under this Act.

Reimposition of duty

15. (1) If any goods, on which customs duty has not been paid

by reason of an exemption granted under section 14, cease to

comply with the conditions subject to which such exemption was

granted or cease to be kept or used by the person or for the

purposes qualifying them for such exemption, such goods shall,

upon such cesser, become liable to the customs duty and the

person to whom such exemption was granted and any person found

in possession of such goods shall be jointly and severally liable

to pay such customs duty.

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(2) If any goods, which are liable to customs duty under subsection

(1) and on which such duty has not been paid, are found in the

possession or on the premises of any person other than the person

authorized to possess them under the terms of such exemption,

such goods shall, until the contrary is proved, be deemed to be

uncustomed goods.

Return of duty or other charges overpaid or erroneously paid

16.  It shall be lawful for the Director General, if it is proved to

his satisfaction that any money has been overpaid or erroneously

paid as customs duties or as any other fee or charge under this Act,

to order the refund of the money so overpaid or erroneously paid:

Provided that--

(a) no such refund shall be allowed unless a claim in respect

of it is made in the prescribed form within one year after

the overpayment or erroneous payment was made; or

(b) in the case where any customs duty has been paid under

protest under section 13B, no claim of refund shall be

allowed unless such claim is made in the prescribed form

within one year after the decision on classification or

valuation is made known to the claimant.

Payment of duty, etc., short paid or erroneously refunded

17. (1) Whenever--

(a) through inadvertence, error, or for any other reason,

misconstruction on the part of any officer of customs, or

through unintentional misstatement as to value, quantity

or description by any person, or for any other reason, the

whole or any part of any customs duties or other moneys

payable under this Act have not been paid; or

(b) the whole or any part of such customs duties or other

moneys, after having been paid, have been, owing to any

cause, erroneously refunded,

the person liable to pay such customs duties or other moneys or

the person to whom such refund has erroneously been made, as

the case may be, shall pay the deficiency or repay the amount paid

to him in excess, on demand being made within three years from

the date on which customs duty was payable or deficient customs

duty was paid or the refund was made, as the case may be, and

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29

without prejudice to any other remedy for the recovery of the

amount due, any goods belonging to such person which may be

in customs control may be detained until such customs duty or

deficiency be paid or the refund be repaid, as the case may be.

(2) Where any amount is payable in accordance with

subsection (1) the Director General may allow the amount to be

paid by instalments in such amounts and on such dates as he may

determine.

Recovery of customs duties from persons leaving Malaysia

17A. (1) Where the Director General has reason to believe that

any person is about or is likely to leave Malaysia without paying

any customs duties, he may issue to any Director of Immigration

a certificate containing particulars of the duties so payable with

a request that such person be prevented from leaving Malaysia

unless and until he pays all the duties so payable or furnishes

security to the satisfaction of the Director General for its payment.

(2) Subject to any order issued or made under any written law

relating to banishment or immigration, any Director of Immigration

who receives a request under subsection (1) in respect of a person

shall exercise all measures which may include the removal or

retention of any certificate of identity, passport, exit permit or

other travel documents in relation to that person as may be necessary

to give effect to the request.

(3) The Director General shall cause a notice of the issue of a

certificate under subsection (1) to be served personally or by

registered post on the person to whom the certificate relates.

Provided that the non-receipt of the notice by that person shall

not invalidate anything done under this section.

(4) Where the person in respect of whom a certificate has been

issued under subsection (1) produces on or after the date of the

certificate a written statement signed by the Director General stating

that all the duties specified in the certificate have been paid or that

security has been furnished for its payment, that statement shall

be sufficient authority for allowing that person to leave Malaysia.

(5) No legal proceedings shall be instituted or maintained against

the Government, a State Government, or any other public officer

in respect of anything lawfully done under this section.

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(6) In this section "Director of Immigration" means any Director

of Immigration appointed under subsection 3(1A) of the Immigration

Act 1959/63 [Act 55].

Remission of import duty on goods lost, damaged or destroyed

before removal from customs control

18. (1) If any dutiable goods which have been imported are,

damaged, destroyed or, by unavoidable accident, lost at any time

after their arrival within Malaysia, and before removal from customs

control, the Director General may remit the whole or any part of

the customs duty payable thereon.

No abatement of duty after goods have been removed from

customs control

(2) After removal of any goods from customs control no abatement

of customs duties shall be allowed on any such goods--

(a) on account of damage; or

(b) on account of any claim--

(i) to pay duty at a preferential rate; or

(ii) that the weight, measure, volume or value as determined

by the proper officer of customs for the purpose of

ascertaining the duty on such goods, or any other

factor affecting the goods, is incorrect,

unless notice in writing of such claim has been given at

or before the time of such removal.

(3) After removal of any goods from customs control no abatement

of export duty shall be allowed on any such goods on account of

damage, theft or loss.

Calculation of customs duty

19. (1) The rate of customs duty applicable to any goods shall be:

(a) in the case of goods lawfully imported--

(i) if such goods (other than petroleum in a licensed

warehouse) are warehoused, or if customs duty is

paid at a collection station established under subsection

63(2), the rate in force on the day on which the removal

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31

of the goods is authorized by the proper officer of

customs or, in the case of a collection station, by an

officer appointed under the provisions of any law for

the time being in force in Singapore relating to the

collection of customs duties payable to the Government

of Malaysia;

(ii) if such goods consist of petroleum which is in a

licensed warehouse, the rate in force on the day on

which such petroleum is removed from such

warehouse;

(iii) if such goods are imported by post, the rate in force

on the day on which duty is assessed by the proper

officer of customs; and

(iv) in any other case, the rate in force on the day on

which such goods are released by the proper officer

of customs;

(b) in the case of uncustomed goods, the rate in force on the

day on which such goods became uncustomed goods, if

known, or the rate in force on the day of seizure, whichever

is the higher.

(2) For the purpose of calculating the customs duty payable, the

valuation applicable to any goods shall be made in the prescribed

manner.

Calculation of export duty

The rate of export duty and the valuation (if any) applicable

20.

to any goods shall be--

(a) in the case of goods lawfully exported, the rate and valuation

in force on the day on which a receipt is issued for the

payment of duty:

Provided that when payment of duty in arrears has

been permitted under section 80 the rate and valuation

shall be the rate and valuation in force on the day on

which the goods are released by the proper officer of

customs, or, as the case may be, by an officer appointed

under any law for the time being in force in Singapore

relating to the collection of export duties on goods exported

from Malaysia;

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(b) in the case of uncustomed goods, the rate and valuation

in force on the day on which such goods became

uncustomed goods, if known, or the rate and valuation

in force on the day of seizure, whichever is the higher.

Time of importation and exportation when duty is imposed or

repealed

21.  When by virtue of an order made under subsection 11(1) a

customs duty is fixed on any goods which previously were not

dutiable goods or any customs duty on goods is abolished or when

the importation or exportation of any goods is prohibited or any

such prohibition is abolished by an order made under section 31

and it becomes necessary for the purpose of this Act to determine

the time at which an importation or exportation of any goods made

and completed shall be deemed to have had effect, such importation

or exportation shall, notwithstanding anything in this Act contained,

be deemed to be the time at which the goods are released by the

proper officer of customs.

Questions in respect of goods deemed to be dutiable

22.  If any question arises as to whether any particular goods are

or are not included in a class of goods appearing in an order made

under subsection 11(1), such question shall be decided by the

Director General.

Certificate of Director General admissible in evidence

22A.  Notwithstanding anything contained in any other written

law or rule of evidence to the contrary, where in any proceedings

a document purporting to be a certificate under the hand of the

Director General in respect of a decision made by him under

section 13B or 22 is produced, such document shall be admissible

in evidence and shall be accepted as sufficient evidence of the

facts therein stated and the Director General shall not be required

to give evidence in respect of such decision unless the court otherwise

orders.

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33

Recovery of customs duty as a civil debt

Without prejudice to any other remedy, any customs duty

22B.

payable under this Act may be recovered by the Minister 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 that State.

Joint and several liability of dirctor, etc.

Where any customs duty is payable by--

22C.

(a) a company;

(b) a firm; or

(c) a society, an association or other body of persons,

then notwithstanding anything to the contrary in this Act or in any

other written law, the directors of such company or the partners

of such firm or the members of such society, association or other

body of persons, as the case may be, shall, together with such

company, firm, society, association or other body of persons, be

jointly and severally liable for the customs duty payable:

Provided that in relation to a company that is being wound up,

the directors of such company shall only be so liable where the

assets of the company are insufficient to meet the amount due,

after paying any sums having priority over the customs duty under

the Companies Act 1965 in relation to the application of the assets

of the company in such winding up.

PART IV

IMPORTATION AND EXPORTATION

Time and place of landing goods inwardly

23. (1) No goods imported by sea or transported by water from

any place in Malaysia shall be landed--

(a) except at a legal landing place:

Provided that in Sabah and Sarawak goods may be

landed at a sufferance wharf;

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(b) until permission to do so has been received from the

proper officer of customs; and

(c) except on such days and during such times as may be

prescribed, unless permission to land goods on other

days and during other times has been granted by the

proper officer of customs.

(2) Except with the permission of the proper officer of customs,

no such goods--

(a) after having been landed or unshipped shall be transhipped;

or

(b) after having been put into any boat or craft to be landed

shall be removed into any other boat or craft previously

to their being landed.

(3) The foregoing provisions of this section shall not apply to

fresh fish, whether packed with ice or not, which is landed from

any vessel licensed for the purpose of fishing under any written

law.

Places of landing of goods imported by air

24.  No goods imported by air shall be landed except at a customs

airport and such goods may be cleared at an inland clearance depot

or an inland customs station.

Time and place of import by rail or road

No goods imported by rail or road shall be imported--

25.

(a) except at a prescribed place of import and where a route

has been prescribed, by such route; and

(b) in the case of goods imported by road, except on the days

and during the times prescribed for such importation

unless permission to import goods on other days and

during other times has been granted by the proper officer

of customs.

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35

Time and place of loading goods for export by sea

No goods shall be loaded, or water-borne to be loaded for

26.

exportation by sea or for transportation by water from any place

to another place in Malaysia--

(a) except at a legal landing place:

Provided that in Sabah and Sarawak goods may be

loaded or water-borne to be loaded for exportation by sea

at a sufference wharf;

(b) until permission to do so has been received from the

proper officer of customs; and

(c) except on such days and during such times as may be

prescribed, unless permission to load goods on other

days and during other times has been granted by the

proper officer of customs.

Transportation by sea of goods liable to export duty to another

customs port

27. (1) No goods in respect of which customs duty is payable

on export shall be loaded, or water-borne to be loaded, for

transportation by sea from any place to any other place in Malaysia

unless--

(a) the export duty has been paid on any goods intended to

be transhipped at such other place; or

(b) in the case of goods to be landed at a legal landing place

in Malaysia security in the amount of such export duty

has been furnished to the satisfaction of the senior officer

of customs that any goods intended to be landed at such

other legal landing place shall be so landed:

Provided that in the case of Sarawak, export duty may be paid

at such time and in such manner as the Minister may prescribe by

regulation under section 142.

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(2) No goods in respect of which customs duty is payable on

export shall be forwarded by rail from one place to another place

in Malaysia when the journey involves passage through territory

outside Malaysia unless--

(a) the customs export duty has been paid thereon; or

(b) security in the amount of such duty has been furnished

to the satisfaction of the senior officer of customs at the

station of despatch that such goods shall be produced to

the senior officer of customs at the station of destination.

Time and place of export by rail or road

No goods shall be exported by rail or road--

28.

(a) except at a prescribed place of export and, where a route

has been prescribed, by such route; and

(b) in the case of goods exported by road except on such

days and during such times as may be prescribed unless

permission to export goods on other days and during

other times has been granted by the proper officer of

customs.

Exportation by air

29.  No goods shall be exported by air except at a customs airport

and such goods may be cleared at an inland clearance depot or an

inland customs station.

Importation or exportation by pipeline

29A.  No goods shall be imported or exported by pipeline unless

such pipeline is approved by the Director General who, in granting

such approval, may impose such conditions as he may deem fit.

Exemption from provisions of sections 23, 24, 25, 26, 28

and 29

30.  The Director General may exempt any person from all or any

of the provisions of sections 23, 24, 25, 26, 28 and 29 on such

conditions as he may deem fit to impose.

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Power of Minister to prohibit imports or exports

31. (1) The Minister may, by order--

(a) prohibit the importation into, or the exportation from

Malaysia or any part thereof, either absolutely or

conditionally, or from or to any specified country, territory

or place outside Malaysia, or the removal from one place

to another place in Malaysia of any goods or class of

goods; and

(b) prohibit the importation into, or exportation from, Malaysia

or any part thereof, or removal from one place to another

place in Malaysia of any goods or class of goods, except

at specified ports or places.

(2) If any question arises as to whether any particular goods are

or are not included in a class of goods appearing in an order made

under subsection (1), such question shall be decided by the Director

General.

Transportation by sea of goods of a class the export of which

is prohibited

32. (1) No goods of a class the exportation of which is prohibited

by an order made under section 31 shall be loaded, or water-borne

to be loaded, for transportation by sea from any place to any other

place in Malaysia unless security has been furnished in such amount,

not exceeding three times the value of such goods, as the senior

officer of customs of the place from where the goods are to be

transported may determine and such officer is satisfied that any

goods intended to be landed at such other place shall be so landed.

(2) No goods of a class the exportation of which is prohibited

by an order made under section 31 shall be forwarded by rail from

one place to another place in Malaysia when the journey involves

passage through territory outside Malaysia unless security has

been furnished in such amount, not exceeding three times the

value of such goods as the senior officer of customs at the station

of despatch may determine and such officer is satisfied that such

goods shall be produced to the senior officer of customs at the

station of destination.

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Saving in respect of certain navigable rivers

Where in respect of any goods the provisions of this Act and

33.

of any subsidiary legislation made thereunder have been complied

with, then notwithstanding sections 23 and 26,such goods may,

subject to such conditions and the payment of such fee as the

Director General may impose, be landed or loaded at any place on

the banks of a navigable river upstream of a customs port or legal

landing place.

Power of Director General to require security

34.  The Director General may, at his discretion, either generally

or in a particular case or in respect of a particular area, require

security to be given by any person moving dutiable goods within

Malaysia and where any such security has been required to be

given no person shall move such goods unless such security has

been given. Such security shall not exceed the amount of duty

leviable on such goods.

Presumption as to export

In relation to export, goods shall be deemed to be taken or

35.

caused to be taken out of Malaysia--

(a) if they have been cleared by a proper officer of customs

at the last customs station on their route out of Malaysia;

(b) if they have been loaded on to a vessel or aircraft which

is about to depart from a port or place in Malaysia; or

(c) if they have been cleared by a proper officer of customs

at an inland clearance depot or at an inland customs

station on their route out of Malaysia through a customs

port or airport.

PART V

PORT CLEARANCES

Arriving vessels, unless exempted, to be reported, and produce

papers

36. (1) The master of every vessel arriving at any customs port

and not being a vessel to which the exemption under

section 39 applies shall either personally or through the agent of

such vessel--

(a) forthwith report to the proper officer of customs the

arrival of such vessel;

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39

(b) give such information relating to the vessel, cargo, crew

and voyage, as the proper officer of customs may require;

and

(c) on demand by such officer, produce the port clearance,

or other document which it is usual to grant, granted at

the last port of call and any other documents relating to

the vessel, cargo, crew and voyage.

(2) The proper officer of customs may retain the port clearance

or other document granted at the last port of call.

(3) Where there has been a failure to comply with subsection

(1) the master or agent of the vessel concerned shall be guilty of

an offence and shall, on conviction, be liable to a fine not exceeding

one thousand ringgit.

No vessel unless exempted, to sail without port clearance

37. (1) No vessel, whether laden or in ballast or empty, not being

a vessel to which the exemption under section 39 applies, shall

depart or attempt to depart from any customs port until a port

clearance in the prescribed form has been granted by the proper

officer of customs to the master or to the agent of the vessel.

(2) If any such vessel, departs or attempts to depart from any

customs port without such port clearance, the master of the vessel

and also the owner and agent of the vessel, if a party or privy there

to, shall be guilty of an offence, and the vessel, if still within the

territorial waters, may be detained.

(3) Any person guilty of an offence under this section shall on

conviction be liable to a fine not exceeding one thousand ringgit.

Master to attend and answer questions when applying for port

clearance, and deliver documents

38. (1) Before any vessel, other than a vessel to which the

exemption under section 39 applies, departs from any customs

port, the master or the agent of such vessel shall attend before the

proper officer of customs, and shall give such information concerning

the vessel, the cargo, the crew, the passengers and the voyage, as

the proper officer of customs may require and shall deliver to such

officer a list of all goods, in respect of which customs duty is

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payable on export, and a list of all goods of a class the export of

which is prohibited, which are to be delivered at another port in

Malaysia.

List of goods carried to be endorsed upon or attached to port

clearance

(2) If the proper officer of customs is satisfied that the

information given under subsection (1) is accurate, he shall complete,

sign and issue to the master or the agent of the vessel, a port

clearance in the prescribed form, and shall endorse thereon or, at

his discretion, attach thereto, a copy of the list of the goods

delivered to the proper officer of customs in accordance with

subsection (1).

Port clearance to be carried aboard vessel to next port of call

(3) Such port clearance shall be carried on board the vessel at

all the times when such vessel is in the territorial waters.

Vessels exempted from requiring port clearance

39. (1) Sections 36, 37 and 38 shall not apply to vessels of the

following classes, namely--

(a) any vessel of war, troop-ship, or other vessel belonging

to, or for the time being operated by the Government of

Malaysia or of any foreign State and used exclusively on

governmental and non-commercial services;

(b) vessels engaged solely in fishing and licensed for the

purpose of fishing under any written law;

(c) vessel whose movements are confined to navigable rivers

upstream of a customs station situated at or near the

mouth of such river;

(d) privately owned pleasure vessels not plying for hire and

not carrying cargo;

(e) vessels of a class in respect of which an order under

subsection (2) is in force.

(2) The Minister may, by order, exempt either absolutely or

conditionally, any class of vessels from the operation of

ssections 36, 37 and 38.

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41

Master of vessel not sailing within 48 hours of port clearance

to report to proper officer of customs

40.  If a port clearance is issued in respect of any vessel in

accordance with subsection 38(2), and the vessel does not sail

within forty-eight hours thereafter, the master or agent of such

vessel shall report to the proper officer of customs his reason for

not sailing, and if the proper officer of customs so directs shall

obtain a fresh port clearance.

When clearance may be refused

41. (1) The proper officer of customs shall not grant a port clearance

in respect of any vessel--

(a) until the provisions of this Act and any regulation made

thereunder regarding the vessel and cargo carried aboard

such vessel have been complied with; or

(b) until all charges and penalties due by such vessel or by

the owner or master thereof and all duties payable in

respect of any goods shipped therein have been paid or

their payment secured by such deposit or written guarantee

as the proper officer of customs may require.

(2) If under the provisions of any written law a Port Officer or

other proper authority has notified the proper officer of customs

that any vessel is liable to be detained, the proper officer of

customs shall not issue a port clearance in respect of such vessel

without the written concurrence of such Port Officer or other

proper authority.

Application to aircraft

42.  The provisions of this Part shall apply, with such modifications

and adaptations as may be necessary, in respect of aircraft arriving

at, or departing from, any customs airport.

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PART VI

GENERAL PROVISIONS AFFECTING VESSELS IN

TERRITORIAL WATERS

Master of vessel to obey signals from preventive vessels and

instructions by an officer of customs

43.  The master of any vessel in territorial waters shall obey any

signal made to him from a preventive vessel or any instructions

given by an officer of customs in uniform from any other vessel

or any place requiring him to stop or to heave to or to perform

any other act.

Hovering

44. (1) If any vessel hovers within territorial waters and on

examination is found to be conveying goods dutiable on import or

goods of a class the importation of which is prohibited, the master

and every member of the crew of such vessel shall be presumed,

until the contrary is proved, to have imported uncustomed or

prohibited goods, as the case may be.

(2) If any vessel hovers within territorial waters and on

examination is found not to be carrying any of the goods referred

to in subsection (1), such vessel shall be presumed, until the

contrary is proved, to be hovering for the purpose of receiving