ISKANDAR PUTERI: Forest City will fully operate as a duty-free zone from Nov 15, allowing visitors to buy tax-exempted alcoholic beverages and cigarettes and consume them outside the island.
Previously, duty-free items bought on the man-made island had to be consumed within its grounds.
Under the law, customers can buy up to three crates of beer, five litres of liquor and three cartons of cigarettes at duty-free prices.
Gazetted as a duty-free island in September, Forest City is Malaysia's fifth duty-free island in the country and the only one accessible by land.
The tax exemption scheme will be implemented in two phases, as the newly built artificial intelligence-powered Customs complex goes fully operational.
The first phase, beginning on Nov 15, will focus on hotel guests staying at least 48 hours.
Customs director-general Datuk Anis Rizana Mohd Zainudin said the new complex, fitted with the latest technology, will allow enforcement officers to enhance security measures, and monitor and zero in on smuggling attempts.
Customs officers stationed at the complex will have access to closed-circuit television (CCTV) cameras installed along the commercial street and parking areas.
"With the CCTV footage, Customs enforcement officers can efficiently monitor and respond to any smuggling attempts," she said.
The 48-hour identification and verification system will initially be limited to Forest City's hotel management.
In the second phase, expected to begin in the first quarter of next year, the existing system will be reinforced with the use of QR codes, visitor tracking, the expansion of the 48-hour monitoring system and extension of duty-free privileges to high-, medium- and low-value goods.
Anis said Forest City's high-tech Customs checkpoint complex is designed to enhance security and operational efficiency.
"The facility aims to enhance Customs enforcement capabilities and streamline inspection processes on the duty-free island."
Anis said the complex was strategically located at the tip of the island.
"This will ensure that there are no other exit routes, requiring all vehicles to pass through the advanced scanning technology, which includes an AI system for image analysis to detect smuggling patterns.
"These high-tech upgrades are expected to strengthen entry and exit security on the island, boosting Customs' ability to monitor and manage goods efficiently."
Earlier this year, the 'News Straits Times' exposed rampant smuggling of duty-free alcoholic beverages and cigarettes from Forest City, resulting in millions in lost revenue.