Customs collection is expected to increase using this system
Royal Malaysian Customs Department will introduce a comprehensive and well-established electronic system known as the 'Ubiquitous Customs' or U-Customs to replace the Customs Information System (CIS), which was introduced 17 years ago. U-Customs, which will be fully implemented by 2016 will conform to international standards by establishing facilities for trade and customs procedures thoroughly.
U-Customs will be able to reduce leakages in customs revenues from 18 percent to 15 percent by 2015 as set by the International Monetary Fund (IMF) for developed countries and 20 percent for developing countries. Royal Malaysian Customs Department proceeds will increase by the new system would not only meet the needs and demands of traders and industry sectors.
The Government has decided that the customs information system is now considered to be not so effective and efficient even unable to cope with issues related to revenue leakage, replaced. In addition to smuggling and commercial fraud, the absence of a robust electronic system has been identified among the main causes of revenue leakage.
This system enables the latest data related to shipping information and documents import / export trade is shared by 'authorized partners' via web services. It can also help the process of auditing and risk rating profile of goods and importers / exporters in the risk management system.
U-Customs system developed by Malaysian Administrative Modernisation and Management Planning Unit (MAMPU) and still in the development stage. U-Customs is able to optimize the commercial facility management and security control border trade easy, efficient and friendly to the cost of money as evidenced by South Korea. As a result, South Korea's total trade has increased more than 12 times that of USD11.3 billion in 1974 to USD134.9 billion in 1990.
Customs Affairs that was conducted semi-automatic or semi ICT in the country causing leakages with ease, productivity is not being enhanced, increasing the amount of human capital and revenue not properly collected.