KUALA LUMPUR — In a decisive move to safeguard its trade reputation, Malaysia has imposed stricter export documentation rules aimed at curbing the trans-shipment of goods that originate outside its borders. The crackdown comes as U.S. authorities escalate their scrutiny of Southeast Asian nations suspected of facilitating tariff evasion, particularly amid heightened tensions with China.

Effective May 6, Malaysia’s Ministry of Investment, Trade and Industry (Miti) will serve as the sole issuer of non-preferential certificates of origin (NPCOs) for all shipments bound for the United States. Previously, these vital documents—used to verify the origin of goods for customs compliance—could also be obtained from local business councils and industry associations. The new centralized system is designed to close loopholes that have allegedly been exploited by foreign exporters, including Chinese firms, to disguise the true origin of products and sidestep U.S. tariffs.

U.S. “Liberation Day” Tariffs Prompt Global Response

The move aligns with stepped-up enforcement actions by U.S. Customs and Border Protection following the introduction of new “Liberation Day” tariffs on April 2, targeting goods rerouted through third countries. Reports from both Malaysian and international media have highlighted growing concerns in Washington over the proliferation of trans-shipment hubs in Southeast Asia, with Malaysia often cited as a key transit point.

Malaysia Pledges Zero Tolerance for Trade Fraud

In its May 5 statement, Miti reaffirmed its commitment to “upholding the integrity of international trade practices” and announced additional measures to combat illegal trans-shipments. These include enhanced audits of NPCO applicants, closer cooperation with the Malaysian Customs Department, and tougher penalties for violators.

Industry insiders have pointed to documented cases where exporters allegedly falsified certificates of origin to pass off Chinese goods as Malaysian-made, enabling them to enter the U.S. market tariff-free. Malaysian authorities are now under pressure to root out such practices to avoid potential trade repercussions from Washington.

Regional Ripple Effects as Other ASEAN Nations Scramble

Malaysia’s clampdown is expected to have ripple effects across the ASEAN region, where other countries like Vietnam and Thailand are also under U.S. watch for similar practices. Analysts suggest that the stricter controls could temporarily slow export flows but ultimately strengthen Malaysia’s standing as a credible trade partner.

With Washington signaling continued vigilance, trade experts anticipate that more Southeast Asian economies will be compelled to tighten their compliance frameworks in the months ahead. (zai)