PETALING JAYA: Malaysia should consider an independent review to address US allegations of illegal transshipment aimed at facilitating tariff evasion, particularly involving Chinese goods, according to the CEO of a shipping company.
Maritime Network Sdn Bhd CEO R Jeyenderan said a fact-based review could help address questions about the movement and origin of goods exported through Malaysia.
“Malaysia must defend its reputation, but that defence must begin with facts.
“Blanket denials will not protect our reputation,” he said in a statement.
Last week, the White House Office of Trade and Manufacturing Policy identified Malaysia among more than 40 countries at risk of facilitating tariff evasion through China-linked transshipment networks.
In its report, titled “The Great Transshipment Scam: Rise, Scope and Costs”, the White House alleged that Malaysia had become a “microhub” for production and a maritime gateway.
However, the report also acknowledged that a shift in the source of US imports away from China could not be taken as evidence that all affected Chinese trade had been illegally diverted.
Rebecca Fatima Sta Maria, a former secretary-general of the then international trade and industry ministry, was quoted by The Edge as saying Malaysia had been unfairly labelled by the US over the issue.
Elaborating, Jeyenderan said the review must trace the entire movement of cargo, including manifests, bills of lading, customs documents, certificates of origin, storage records, any mixing or processing activities, and the final declaration before export.
“When questions arise over cargo movements, documentation, storage, mixing or final classification, the answer cannot simply be ‘there is no case’ without explaining what was examined and how the conclusion was reached.
“The methodology and findings should be made public while protecting legitimate commercial information. That is how confidence can be restored,” he said.
