CUSTOMS (AMENDMENT) BILL

Order for Second Reading read. 2.20 pm

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Bill seeks to amend the Customs Act and the Free Trade Zones Act to give effect to the Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade known as the Customs Valuation Code. In addition, the Bill also seeks to amend section 130(1) of the Customs Act on enhanced sentences for cigarette smuggling to remove certain ambiguities which have arisen in interpreting this section of the Act.

Singapore, as a member of the WTO, is obliged to comply with the Customs Valuation Code within five years from 1st January 1995. The Customs Valuation Code stipulates that the transaction value of imported goods should be used to assess the import duty payable.

The Bill also makes the following amendments to the Customs Act:

(a) amend section 22 to confine the method of valuation in section 22 to that for the purposes of levying excise duty under the Act;

(b) introduce a new section 22A to provide for the purposes of levying import duty under the Act. The valuation of imported goods will follow the Customs Valuation Code which will be provided for in the subsidiary legislation;

(c) introduce a new section 22B to provide for any person who disagrees with the valuation under section 22 or 22A an avenue to object to the valuation and, if necessary, appeal to the High Court;

(d) amend section 130(1) to make it clear that for offences involving tobacco products of more than 2 kg in weight,

(i) the punishment of imprisonment is not mandatory;

and

(ii) the first offence refers to an offence involving

tobacco products of more than 2 kg in weight.

This has been the intent of section 130(1) but its wording has given rise to certain ambiguities in its interpretation. The amendment will remove the ambiguities.

The Bill also makes consequential amendments to the Free Trade Zones Act. This is to ensure consistency with the Customs Act in the valuation of imported goods for the purposes of levying customs duty.

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. - [Dr Richard Hu Tsu Tau].

Bill considered in Committee.

[Mr Speaker in the Chair]

Clauses 1 and 2 ordered to stand part of the Bill.

Clause 3 -

Dr Richard Hu Tsu Tau: Sir, I beg to move,

In page 2, lines 14 and 17, to leave out "other than motor spirit".

The reason for this is that it is a technical amendment.

Amendment agreed to.

Clause 3, as amended, ordered to stand part of the Bill.

Clauses 4 and 5 ordered to stand part of the Bill.

Bill reported with an amendment, read a Third time and passed.