FEDERATION OF MALAYA CUSTOMS DUTIES COLLECTION BILL

Order for Second Reading read.

2.52 p.m.

The Financial Secretary (Mr T. M. Hart): Sir, I have His Excellency's consent to proceed with this Bill and I beg to move, "That the Bill be now read a Second time."

Under the existing Ordinance (Cap. 163), the Federation Government has since 1918 been permitted to maintain customs stations in Singapore for the purpose of collecting duty on dutiable goods exported from the Federation by rail. Federation customs officers have been authorised by warrant to perform certain functions under the Ordinance. These functions include the collection of duty, the search of goods and baggage within the limits of the station, and the power of arrest without warrant when an offence has been committed. Under section 10 of the Ordinance, authorised officers have the powers of officers of the customs under the Singapore Customs Ordinance, and have power to enforce the provisions of the Ordinance in so far as they relate to the collection of revenue on intoxicating liquors.

Sir, over the years, the function of the collection station established under the Ordinance has changed. More and more it has tended to be used for the collection of duty on goods imported into the Federation from Singapore rather than for the collection of duty on goods exported from that territory. At the present time, the major portion of revenue collected at the station comes from imports. Commercial firms in Singapore have found it increasingly convenient to ship goods into the Federation through this station.

It is considered that the time has come to recognise this change of function of the collection station, and to regularise its operations by changing the provisions of the law. Consultations to this end have taken place with the Federation Government and the Bill which is now before the Assembly is the outcome.

As is to be expected, Sir, in the circumstances the overall effect of the Bill is to give extraterritorial effect in Singapore to the Federation Customs Ordinance, 1952, and the majority of the clauses of the Bill are based on that Ordinance which, in turn, is very similar to the Singapore Customs Ordinance (Cap. 160).

I will not deal with the individual provisions of the Bill, Sir. They are described in some detail in the explanatory note, and there is also attached to the Bill a list showing from where the various clauses of the Bill are derived. This list also shows which clauses are new. It can be seen, Sir, on pages 26 and 27 of the Bill.

There are, however, Sir, one or two clauses to which I should invite attention. It will of course be realised that certain clauses of the Bill give officers of the Federation Government considerable powers within the territory of Singapore. For example, clauses 14 (2), 24 and 29 give Federation customs officers power to examine the persons and baggage of individuals at collection stations in Singapore. The original intention was to examine passengers and their personal baggage en route to the Causeway. This was considered desirable in order to avoid a long delay for customs examination at Johore Bahru, and to enable the mail train services to be accelerated. Recently, however, the Federation Government has come to the conclusion that it would be better if the examination was to take place in the railway station at Singapore. Apparently, quite apart from the inconvenience caused tp passengers by an examination while the train is in motion, and from the possibility that it might not be completed in time, the cost of the staff required for the operation would be out of all proportion to the revenue likely to be collected. In the circumstances, it is now suggested that the examination should take place in a specially fenced-off portion of the concourse of the railway station. The cost of establishing and maintaining the examination point will fall on the railway administration. This suggestion has been examined by the Ministries concerned from the point of view of physical and mechanical practicability, and no objection is seen to it. All things considered, examination prior to departure would probably be preferred by the large majority of passengers.

It is understood that the Federation Government does not wish to establish a collection station at Paya Lebar Airport for the time being. The volume of traffic, both passenger and freight, is within the capacity of customs staff at the airports in the Federation and the Federation Government does not wish to incur the expense of maintaining a 24- hour duty roster of customs officers at Paya Lebar Airport. In addition, there has as yet been no demand from the commercial interests in Singapore for the establishment of such a station.

Clauses 17 to 19 of the Bill provide for the examination in the General Post Office, Singapore, with the consent and by arrangement with the Controller of Posts, Singapore, of postal packages addressed to destinations in the Federation. These clauses merely give legal sanction to a practice which has been followed for a number of years. Singapore is a considerable source of supply of dutiable goods for the Federation. From time to time, extensive use has been made of postal packages to smuggle small dutiable articles, like watches and fountain pens, into the Federation. When such traffic has been suspected, it has been customary for the Controller of Customs, Federation of Malaya, to arEange for the Controller of Posts, Singapore, to have all postal packages for a certain destination in the Federation examined for a period of days. Normally, no packages are opened. If, however, packages are found which might contain dutiable goods, details of the addresses are taken and forwarded to customs officers at the destinations in the Federation so that action can be taken, to bring the recipient to book and to collect duty. The examination is also sometimes used as a check on the efficiency of customs staff in the Federation. It is unusual for more than two or three of these examinations to be required annually, and they generally last for no more than three or four days at a time. The examinations cause no inconvenience or dislocation of business in Singapore and no objection is seen to their being held.

Clause 53, Sir, confers on authorised Federation customs officers the powers of officers of customs under the Customs. Ordinance, Singapore, and the Dangerous Drugs Ordinance, Singapore. Examination of the Ordinances in question indicates that the powers so conferred, are wide and cover all the legitimate activities of customs officers operating: under the customs law in Singapore. In practice, however, these powers will be limited to those which would follow in the normal way from the discovery of an offence or a suspected offence against Singapore law during the course of an examination at an authorised passenger station. For example, a passenger to the Federation might, on examination, be suspected of being connected with a gang of opium smugglers. It might be imperative to follow the trail without delay. Under clause 53, this operation would be conducted by authorised Federation customs officers since the delay which might result from informing the Singapore Customs Department might mean that the law-breakers might be allowed to escape. There would be no question of Federation Customs officers exercising the powers conferred on them in respect of matters not arising from examinations at collection stations.

The Federation Government is fully aware of the wideness of these powers and has given an assurance as to their use in the following terms:

"The Federation Government undertakes that the powers under the Singapore legislation conferred by this section will only be exercised where a breach of the Singapore legislation comes to the notice of Federation Customs and Revenue officers in the execution of their duties under this Ordinance."

While it is appreciated that the powers are wide, it is considered that their grant will make for greater efficiency in customs control in Singapore. The Government is satisfied that the powers will not be abused.

It will, Sir, be appreciated that an important constitutional question is involved in this Bill in so far as it gives officers of a foreign territory rights of search and detention over the person and goods of citizens of Singapore in the territory of Singapore. Such an arrangement can only be contemplated because of the close ties, economic and otherwise, between the Federation of Malaya and Singapore. It would be out of the question between Singapore and any other power. At the same time, the power o the Bill merely seeks to recognise practice and procedures, the majority of which have been in force for a great number of years in Singapore. It is as much for the benefit of Singapore traders as for the Federation of Malaya Government that collection stations for import duties should be established in Singapore. The arrangements for customs examination of passengers' baggage prior to the departure of the mail train are for the benefit of, and are likely to be welcomed by, travellers generally. While the powers granted under clause 53 are perhaps open to greater objection in so far as Federation customs officers, might exercise powers of search and detention outside the limits of collection stations, the exercise of these powers is unlikely to affect law-abiding citizens of Singapore and can only make for greater and more efficient customs control.

Sir, I beg to move.

Question proposed.

3.02 p.m.

Mr John Ede: Mr Speaker, Sir, I only want to refer to one clause in the Bill, and that is clause 24, in connection with the Hon. the Financial Secretary's statement that customs examination will now take place in the Singapore Railway Station instead of on the train en route to the Causeway as was at one time contemplated. In a question in this House over a year ago, I pressed for the latter practice to be introduced in order to reduce the journey time from Singapore to Kuala Lumpur and other stations in the Federation. Now, Sir, the Hon. the Financial Secretary has not made entirely clear whether time will in fact be saved in the journey under the new clause 24, nor how much time will be taken up by customs examination at the Singapore Railway Station, and we will be grateful if he would enlighten us a little further on the operation of this clause when he replies.

3.04 p.m.

Mr Hart: I cannot give precise details, Sir, but I understand that, as a result of the operation of this particular clause, any delay other than that required for the embarkation and disembarkation of passengers at Johore Bahru will be avoided. In short, trains will now stop for only a short time at Johore Bahru. Hitherto there have been long delays while customs examinations have been made in Johore.

With regard to the question of how long it will take to examine all passengers in the Railway Station at Singapore, I have myself put that question to the Federation Government authorities and they have given an assurance that every effort will be made to see that it is done as expeditiously as possible and that all passengers are cleared by the time the train leaves.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole Assembly.

Committee Wednesday, 16th July, 1958.