Forest City a Smuggling Hotspot?

Smuggling duty-free alcoholic beverages and cigarettes out of Forest City in Gelang Patah  has become a rampant affair. The New Straits Times (“NST”) revealed the presence of "agents" at the Forest City duty-free complex, who are willing to spirit out duty-free items purchased by customers, for the right price. These so-called agents would have no qualms about approaching potential customers to strike up a deal to bring out the items and evade checks by the Customs Department.

The rate for smuggling beer out of Forest City is a minimum of RM25 per crate, while there are different rates for liquor and cigarettes. The NST, upon being alerted to the practice, recently visited the duty-free complex, which houses more than 10 duty-free shops.

Source: https://en.wikipedia.org

Under the law, customers can buy up to three crates of beer (24 cans per crate), five litres of liquor, and three cartons of cigarettes (200 sticks per carton) at duty-free prices. There is no purchase limit on duty-free chocolates.

However, the alcoholic beverages and cigarettes must be consumed only within Forest City and cannot be taken out. To purchase the items, foreigners need to hand over their identification documents, while Malaysians must present their MyKad.

Forest City residents, meanwhile, have a special card which they are required to produce. This was confirmed by checks with a number of duty-free store salespersons.

Outside a store, the NST reporter was approached by a young man who claimed to be a runner who could help bring goods out of Forest City. Dressed in a black T-shirt, jeans and cap, he said he charged RM25 per crate of beer.

A crate of Tiger beer, usually retails at RM143.90, is sold at RM74.30 at the duty-free store. As such, even with the RM25 fee added on, it would still be cheaper than the regular retail price. Asked how this would be done, he said the customer could meet him at the complex's basement car park where the goods would be handed over discreetly. The agent would place the goods in his car and drive out of the complex, which is manned by a Customs officer and a Forest City security guard.

Asked about the risk of the agent driving off with the goods, he gave his assurance that it had never happened before and that he had been "in business" for three years. Queried on the dangers of getting caught, he replied that he was on "good terms" with the Customs officers.

"If I bring out 30 crates at a time, I would be charged for just one or two to meet the tax quota. "But otherwise, I can just drive through," he said, adding that there weren't many visitors to the complex and as such, his services contributed towards the livelihood of the duty-free operators.

Malaysian ingenuity, corruption and lack of enforcement are key for the “success” of a smuggling hotspot. NST reporters did their work on an operation that has been going on for three years. Will the authorities act?

Reference:

Forest City a smuggling hotspot, New Straits Times, Jassmine Shadiqe, 5 Jan 2024