The Star has reported that the Royal Malaysian Customs has begun a clampdown on luxury cars bought in Langkawi and Labuan but used here more than the allowed period. 22 cars with a total value of RM25.8 million have been confiscated by the Customs. The cars were found flaunting Article 21A of the Customs Duty Order (Exemption) 1988 for not paying the duties. Article 21A stipulates that cars bought on the islands of Langkawi or Labuan may not be kept away for more than a month each time, or for more than a total of 90 days a year. The cars, namely supercars and super luxury cars were taken out of the duty-free islands for more than the allowed period.
About time.
This trick of buying and registering luxury cars in Langkawi and Labuan but the owner isn't a local resident of both islands have been going on for a while but the authorities did not take any action. Till now. But all 'good' things come to an end. It is usually the case with any tricks that people come up to deceive the authorities. It will work for a while. Even years but eventually people who do not benefit from such schemes would usually get wind of it and it gets unraveled. This is what's happening now.
This Langkawi, Labuan case has been going on long enough. Everytime I see a G1M, 1M4U or even a Langkawi or Labuan reg car I assume that the chap driving it has bought the car cheaper than what it actually is. For example a RM1.8million car may cost RM1.2million. And furthermore, its no use telling people you're saving a few hundred thousand Ringgit as what you're really telling people around you is that you cannot really afford one of those supercars here in Malaysia if you resort to buying cars in tax free zones and driving them in a taxed zone. Or, you're just plain stingy. A stingy millionaire should get caught. Life is hard. Work harder.
After this, I reckon that cars paying cheaper Sabah and Sarawak road tax but used over here in Peninsular Malaysia would be the target. Be warned people. And learn to buy what you can really, really afford.
For the original article from The Star, click here.http://www.thestar.com.my/News/Nation/2013/10/24/Customs-Dept-seizes-22-luxury-cars-Vehicle-owners-breached-restrictions-on-use-outside-dutyfree-isla.aspx
photo:The Star
4 comments:
Hi
Appreciate your feedback if any latest update with the below ruling. Additionally, upon the first 30days (in West M'sia) is up how long is the langkawi-registered car required to remain in langkawi before the next trip it can come to West M'sia again?
Article 21A stipulates that cars bought on the islands of Langkawi or Labuan may not be kept away for more than a month each time, or for more than a total of 90 days a year.
Do note that high-end cars above 2,500cc must submit a bank guarantee of 50 per cent of the car’s cost, insurance and freight value. Below that cc there will also be a general bond amount of which I have no idea how much. So if a ferrari costs RM600K, you have to fork out RM300k security deposit on the car payable to the customs.
I would also suggest following Article21A - simple, you are allowed three months, but you have to bring the car back after one month, keep it there for a month, then bring it to the main land for a total of three times only every year. The rest of the time you have to keep it in Langkawi.
I am keen to buy a used Porsche which had a G1M plate in 2012 and then was registered in Penang in 2013 with PXX plate, is there a way that I can check if the import duties were paid in 2013 ?
Try getting a copy of the customs declaration form, then go the customs and check.
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