CUSTOMS (AMENDMENT) BILL

Order for Second Reading read. 3.18 p.m.

The Senior Minister of State for Finance (Mr Goh Chok Tong): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Customs Act is amended principally to strengthen the legislation for effective enforcement and to improve administration as well as bring the provisions of the Act in consonance with the changes or requirements in other legislations.

Under section 3(1) of the Act, the term "manufacturer" is re-defined and a definition for the term "bottling" is included in order to remove the ambiguity and contradiction between sections 58(1), 58(4) and 61 (1) of the Act. The contradiction exists because the existing definition of "manufacture" includes blending, compounding and varying of any intoxicating liquor. However, section 58(1) excludes from the licence to manufacture intoxicating liquor, the blending, compounding and varying of intoxicating liquors. Again, section 61(1) requires a licence to be taken out for the blending, compounding and varying of any intoxicating liquor. The new definition of "manufacture" includes the process of distillation, fermentation and any process of converting raw materials into intoxicating liquor but does not include blending, compounding and varying of the intoxicating liquor. The term "bottling" is defined to include blending, compounding and varying of intoxicating liquors.

Another amendment to section 3(1) changes the titles of Comptroller, Deputy Comptroller, Senior Assistant Comptroller and Assistant Comptroller to Director-General, Deputy Director-General, Senior Director and Director respectively, to conform with international practice and recent changes in departmental titles which were effected to enable the public to identify the hierarchy in the Service.

Section 21 (1) is amended to provide for the value of any imported goods to be determined at the time when duty is payable, and not their value at the time of importation.

The amendment to section 25(2) provides for the import of "manufacturers' samples" without payment of duty in the same manner as "trade samples" and the import without duty of "samples for the purpose of soliciting orders from local manufacturers". Under existing provisions, only "trade samples" are allowed to be imported without duty for the purpose of being demonstrated in Singapore for the soliciting of orders from abroad. The amendments will facilitate trade.

The amended section 29(a) provides that no permit shall be required if a person brings into Singapore dutiable goods, the duty of which does not exceed $300. This amendment will again facilitate trade and administration.

The existing section 34 of the Act requires the Director-General to be supplied with a full manifest of goods in transit. The amendment to the section makes it mandatory for the Director-General to be supplied with a statement only when the goods in transit are temporarily discharged in Singapore. The requirement is to enable the Customs Department to keep track of all goods which are temporarily landed and ensure that they are eventually shipped out of Singapore. The amendment also allows the Director-General, if he considers it necessary, to ask for a manifest of all goods, notwithstanding that the goods are not landed and are only in transit through Singapore.

A new section 61A provides that no person, unless he is licensed, shall knowingly keep or have in his possession any utensil, apparatus or material for bottling, blending, compounding or varying any intoxicating liquor and section 123 provides for penalty of imprisonment for a term not exceeding 18 months or to a fine not exceeding $5,000 or to both such imprisonment and fine for an offence under the new section 61A. Another new section 61B provides the exempting provision.

A new subsection 68(1)(c) requires owners of licensed premises to display notices stating that no person under the age of 18 years is allowed to buy or consume intoxicating liquor in the premises. This is consonant with requirements under the Liquor Licensing Regulations, 1974.

The amendment to section 75 makes it an offence for any person, other than those authorised to sell duty-free goods, to advertise that he is selling duty-free goods in his premises.

The amendments to sections 94, 96 and 98 widen the powers of Customs officers conducting investigations or arrests of person(s) connected with any offence under the Customs Act.

With the amendment to section 106, a Magistrate's Court can now impose a sentence of imprisonment for any offence for a term not exceeding two years, instead of 12 months as at present. This is in line with the enhanced powers of a Magistrate to impose sentence as provided for in the Criminal Procedure Code (Amendment) Act, 1976.

Section 121 is amended by making the possession of uncustomed goods an offence. A new section 121A provides for the imposition of penalties for offences connected with the addition of deleterious substances to intoxicating liquors for consumption or for sale.

The other amendments in the Bill are either, again, to tighten Customs administration or consequential in nature.

Sir, I beg to move.

Question proposed.

Mr Hwang Soo Jin (Jalan Kayu): Mr Speaker, Sir, I just want to raise a small point here. I note that, under clause 2 of the Bill, the title of "Comptroller" is being changed to "Director-General". The Hon. Senior Minister of State mentioned that this is to conform with international practice. I am just wondering whether this is really so, or is this not an attempt on the part of bureaucrats to satisfy their own ego.

Mr Goh Chok Tong: Mr Speaker, Sir, two reasons have been offered for a change in the name. One is that it is to conform with our own internal departmental terminology. The other reason offered is to fit in with international requirement, in the sense that if we do attend international conferences other countries do have such names. Maybe some other countries do not have such names but that is only one of the two reasons.

Mr Hwang Soo Jin: If that is the case, presumably the Comptroller of Inland Revenue will be known as Director-General of Inland Revenue and so on, to ensure consistency.

Mr Goh Chok Tong: Mr Speaker, Sir, I think the hon. Member is aware that recently departmental officers have been given titles or designations to reflect better the nature of their work. It depends on the Comptroller of Income Tax himself whether a change of name would more suitably reflect the kind of work that he is doing.

Mr Hwang Soo Jin: I would rather think this is a case of a rose by another name.

Mr Ivan Baptist: Mr Speaker, Sir, the amendment to section 75, by clause 16 (c), still poses problems for consumers, both local and overseas. If a licensee has for sale in addition to duty-free goods those that are duty-paid, consumers could still be hoodwinked. Will close policing or regulations be introduced to ensure that such a possibility does not occur?

Mr Goh Chok Tong: Mr Speaker, Sir, although I was not able to follow which section the Member was talking about, I think the answer is obvious. It will be yes.

Mr Ivan Baptist: When will such regulations be introduced, and how will such policing be done? So far, from our experience and from the complaints that have been received, there are quite a number of people, including tourists, who are very unhappy about this situation.

Mr Goh Chok Tong: Mr Speaker, Sir, we will leave the details to the department concerned. I think the Consumers Association itself has a duty to help in this instance.

Mr Ivan Baptist: In fact, Mr Speaker, Sir, we brought this matter up to the attention of the Comptroller a long time ago. It was more than two years ago. I would not call this Bill timely, but anyway something is being done.

Mr Goh Chok Tong: Mr Speaker, Sir, could I suggest that he bring up the matter again - to the Director-General this time?

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 Goh Chok Tong].

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