Why did the syndicate declare AI servers as computer components?

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The Syndicate Declared AI Servers as Computer Components to Evade Detection

The syndicate declared the 72 servers containing advanced artificial intelligence (AI) chips as "computer components" to avoid detection by authorities. This misdeclaration was a tactic to bypass scrutiny during transit, as the servers, valued at an estimated RM52.9 million, were suspected of violating Malaysia's Strategic Trade Act 2010. Investigations revealed that Malaysia was being used as a transit point for the re-export of these servers to an Asian country, with the intention of circumventing export restrictions.
Seizure During Routine Inspection

The seizure of the servers occurred on June 5 at a warehouse within the Kuala Lumpur International Airport (KLIA) Free Trade Zone. A team from the KLIA Customs Department’s Enforcement Division made the discovery during an inspection at approximately 4:30 PM. The sophisticated nature of the AI chips within the servers made them a target for regulations under the Strategic Trade Act.
Strategic Trade Act Violation Suspected

Preliminary investigations indicate that the servers were intended for re-export to an Asian nation, with Malaysia serving as a conduit to bypass export controls. The Strategic Trade Act 2010 governs transactions involving unlisted items and restricted activities, including advanced AI chips. Any party intending to export, tranship, or transit such items must notify the Strategic Trade Secretariat (STS) of the Ministry of Investment, Trade and Industry (Miti) at least 30 days in advance if there is suspicion of their use in restricted activities.
Investigation Under Section 12 of the Strategic Trade Act

The case is currently being investigated under Section 12 of the Strategic Trade Act 2010. The freight forwarding company involved in the shipment has been summoned to assist with the ongoing investigation. This action underscores the authorities' efforts to prevent the illicit movement of sensitive technology that could be subject to international export controls.

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Why did the syndicate declare AI servers as computer components?

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