Kuala Lumpur: Malaysia has taken a firm stand against the misuse of the international trading system, particularly the issuance of fraudulent or misleading certificates of origin aimed at evading tariffs. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz announced decisive measures to counter such practices.
According to BERNAMA News Agency, the minister acknowledged reports indicating that certain exporters from China are attempting to bypass United States tariffs by rerouting products through third-party countries, including Malaysia, a tactic known as ‘origin washing.’ In response, Malaysia will implement stricter controls starting May 6, prohibiting chambers of commerce from issuing Non-Preferential Certificates of Origin (NPCO) due to numerous industry complaints about goods being redirected through Malaysia to evade tariffs.
Tengku Zafrul emphasized that the issuance of NPCOs for shipments to the US, which has often been handled by chambers of commerce, will be centralized under the Ministry of Investment, Trade and Industry (MITI). This move aims to prevent misuse and ensure compliance with international trade regulations.
The announcement was made during a special parliamentary session at the Dewan Rakyat, where Prime Minister Datuk Seri Anwar Ibrahim addressed the government’s strategies to mitigate the effects of the US reciprocal tariffs on Malaysian imports.