CUSTOMS (AMENDMENT) BILL

2.58 p.m.

The Minister for Finance (Mr Lim Kim San): Mr Speaker, Sir, I have the President's recommendation to introduce the Customs (Amendment) Bill. Mr Speaker, I beg to introduce a Bill intituled "An Act to amend the Customs Ordinance, 1960 (No. 44 of 1960)".

Bill read the First time.

Second Reading

Mr Speaker: Second Reading, what day?

Mr Lim Kim San: Now, Sir. Mr Speaker, I lay upon the Table a Certificate of Urgency signed by Mr President in respect of the Customs (Amendment) Bill.

Certificate of Urgency handed in.

Mr Speaker: The Certificate is in order. Are typed or printed copies of the Bill available for the use of Members?

Mr Lim Kim San: Yes, Sir. The copies are with the Clerk.

Printed copies of the Bill distributed to hon. Members.

Mr Speaker: Please proceed.

Mr Lim Kim San: Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The object of the Bill is to make such changes of terminology to the Customs Ordinance, 1960, as are required in the light of Singapore's new constitutional position on separation from Malaysia. The opportunity has also been taken to make such amendments as are considered desirable in the light of past experience and to revert to simpler administrative procedures which existed in the Customs Ordinance in Singapore prior to Malaysia. Such amendments will provide for greater flexibility and streamline administrative procedures to improve efficiency in administering the law.

References to the Crown, Federal Minister and such other titles which are no longer applicable here have been removed and suitably substituted with the appropriate titles.

An example of simplification of the procedure is the reversion to the pre-Malaysia practice whereby Customs Duties could be prescribed by the Minister by Order published in the Gazette and subsequently presented to the Legislature. During Malaysia for the duties to be effective they had to be confirmed by a resolution passed by Parliament.

Clause 8 of the Bill extends the exemption provisions from Customs Duties to apply to taxes, fees and other charges payable under the law.

Clause 10 makes provision for the refund of erroneous payments for which no provision now exists under the law.

Clause 11 extends the period during which recovery may be made of moneys and empowers the Comptroller to waive such recoveries where the amounts do not exceed $5.

Clause 12 provides for the method of calculation of duty in Government warehouses and other warehouses to be similar where at present different systems apply.

Where at present the Comptroller has power to withdraw the warehouses or bottling warehouses' licences, no provision exists for suspension; such powers are now provided in clauses 23 and 29.

The existing law relating to exemption from licensing of premises for the sale of liquors to British Armed Forces personnel has been extended to cover all Armed Forces in Singapore in clause 13.

Under the existing law, where partial exemption of Customs duties has been given, no drawback facilities can be given. Clause 31 provides for liberalisation of drawback facilities taking into account the need to foster export and manufacturing industries.

Clauses have also been included to exempt from Customs duty raw materials used by bona fide export orientated local manufacturers. For control purposes, "licensed factory warehouses", with provisions for storage, release of dutiable goods and Customs inspection are provided for under clause 22 of the Bill.

Clauses 39, 40 and 42 provide for increased composition sums, penalties for tax evasion, etc. so that with more duties being imposed, adequate deterrents will exist in the law.

Under existing law, toddy is a Government monopoly and provision has been made in clause 33 for the supply and use of toddy as an ingredient in the manufacture of other products and for the bottling of toddy for retail sale.

Less important clauses include powers for the Comptroller to prescribe places of import and export of dutiable goods by sea from time to time; and the requirements for full statements in respect of all goods imported and those intended for transhipment instead of inconvenient extracts in respect of dutiable goods. Changes have also been made in the prescribed times within which statements have to be submitted. These changes will prepare the way for the necessary customs controls for a period of expanding tariffs to assist industrialisation and development.

Other modifications or changes are mainly procedural and not substantive.

Sir, I beg to move.

Question put, and agreed to.

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

The House immediately resolved itself into a Committee on the Bill. -[Mr Lim Kim San].

Bill considered in Committee; reported without amendment; read a Third time and passed.

3.09 p.m.