HISTORY OF ESTABLISHMENT THE ROYAL MALAYSIAN CUSTOMS

The royal customs (RMC) (Malay: Kastam Diraja Malaysia (KDRM) is the government agency responsible for administrating the nation indirect tax policy. The early function of the Royal Customs (RMC) is collecting taxes on the revenues of agriculture, mining, liquor, and opium. Even though a customs and exercise department had yet to exist, all customs activities were operated by a body called the Governments Monopolies. This body was authorized to grant import license and process and sell certain goods such as opium, tobacco, arrack, cigarettes and matches.

    In 1931 during the Federated Malay States Rulers Conference or Derbies in Sri Menanti, Negeri Sembilan, The British high Commissioner, Sir Cecil Clemente Proposed an expansion of the union. The proposition was based on the annual increase of import tax. Henceforth he suggested an establishment of a Customs union for the whole of the Malay Peninsula. This was so that the tariff growth in the Federated Malay States would not disturb the smooth trade transaction in the states.

       However, the Customs Union for the Malay Peninsula could only be established in 1946, that is with the formation of the Malayan Union in April, 1946, and the department was given the name Customs and Excise of Malayan union. Nevertheless, with the dissolution of the Malayan union in 1948, this department was reorganized. The Customs Department then did not only comprise of those under the Federated Malay States but it also included those under the administration of the Non Federated Malay States and the Straits settlements.

    In 1948, with the formation of the Federation of Malaya, the Customs and excise department were establishment for the whole of the Malay Peninsula. Under the Customs Ordinance 1952, this department was put under the control of the High Commissioner for Malaya and headed by a Comptroller of Customs as can be found since 1938. This lasted until the country achieved its independence in 1957.

    On Tuesday, 29^th October 1963, is an important day which in the Dewan Tunku Abdul Rahman, Jalan Ampang, Kuala Lumpur, an auspicious event unfurled as the Customs and Excise Department was conferred the title Diraja/ Royal by HRH Seri Paduka Baginda Yang Di Pertuan Agong. This was an honor from the Government for the Department’s untold contribution to the country. It was a momentous occasion in the history of the Royal Customs and Excise of Malaysia.

     As the main revenue collector, the Customs Department not only must continue to contribute but it also has to increase revenue collection annually. These are done with a delicate balancing act so as not to jeopardize the performance of the industrial sector. In facts, the department has to ensure that whilst its control on the related industries is minimal but effective, it is also there to lend a helping hand and push and prod the industries to develop and prosper. At the same time, preventive work, especially in stopping the entry of negative elements that can threaten the country’s security or those that brought moral decay, must be executed continuously.