CUSTOMS (AMENDMENT) BILL

Order for Second Reading read.

7.56 p.m.

The Minister for Finance (Mr Hon Sui Sen): Sir, I beg to move, "That the Bill be now read a Second time."

The Bill seeks to amend the Customs Ordinance, No. 44 of 1960, to give more flexibility in administration, update sections of the law and also clarify the limitations of the customs provisions in relation to the free trade zone.

I shall now deal with the important amendments.

Clause 2 of the Bill seeks to amend section 2 of the Ordinance by repealing the existing provision which provides that the Ordinance shall not apply to Pulau Sebarok or Pulau Bukom Besar in respect of petroleum, and re-enacting the clause giving the Minister more flexibility. More oil refineries are being developed on off-shore islands and the re-enacted section 2 (a) would allow the Minister to specify any off-shore island where the Customs Ordinance shall not apply in respect of petroleum.

Clause 2 also clarifies that the Ordinance shall have no application within the free trade zone in respect of acts lawfully done. This avoids the need to list out and add to or delete from the list preventive and prohibitive sections of the Ordinance applicable to the free trade zone as required presently.

Clauses 4 and 5 seek to amend sections 4 and 5 by transferring the authority for the statutory appointments of Comptroller, Deputy Comptroller, Assistant Comptrollers and Customs Officers from the President to the Minister for administrative simplicity and to bring this provision in line with similar provisions in other revenue Ordinances.

Clause 6 seeks to amend section 11 o1 the Ordinance to empower the Minister to levy duty on locally-grown tobacco as Virginia-type tobacco, suitable for cigarette making, is currently grown locally.

Clause 7 seeks to empower the Minister to exempt the payment of such fees or charges leviable on items other than goods. Section 13 of the Ordinance, as it now stands, gives the Minister powers only to exempt payments of customs duties, taxes, fees or charges payable on goods. However, there are fees payable other than on goods, for example, warehouse fees.

Clause 8 proposes to extend the scope of the tax, currently limited to vehicles using heavy oil or diesel oil, to cover liquefied petroleum gas and other gases to take account of technological changes and new propellants for vehicles.

Section 34 of the Ordinance regulates the liability of the master or agent of a vessel in respect of short-shipments, short-landings, etc. Clause 12 seeks to supplement this section by extending liability to cover goods landed until they are lawfully removed for export, or enter customs territory or are received for storage in a free trade zone. This removes any doubt as to liability of administrators of free trade zones and will not affect shipowners who may insure against such liabilities.

Clause 19 seeks to reduce the period during which draw-back claims may be made from 12 to 6 months of the date of payment of duty to bring this section in line with other sections of the Ordinance.

Clause 21 makes the preparation of palm trees for tapping an offence. At present only tapping is an offence.

As section 84 of the Ordinance now stands, provision exists for adjustments in prices of sums equal to increases or decreases in existing customs duties levied or payable after a contract is signed. Clause 22 seeks to cover, in addition, price changes arising out of the imposition of new duties or the abolition of duties.

Clause 24 seeks to provide a new general section giving the Comptroller the right to require and take securities for payment of duty and for the collection of revenue. At present the requirement for security is only for certain sections of the Ordinance. The new provision allows enhanced safeguards particularly where high duty goods are involved.

Containerised cargo moving through Singapore is expected to increase and clause 28 empowers the Minister to make regulations on documentation, storage, movement and examination of containerised cargo.

The clause also enables the Minister to require customs stamps to be used for the payment of duty on cigarettes.

The other amendments are purely technical or procedural amendments.

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 Hon Sui Sen].

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