KUALA LUMPUR, May 5 — The Ministry of Investment, Trade and Industry (Miti) will take full control of Non-Preferential Certificates of Origin (NPCO) for all exports to the US from tomorrow.
Minister Datuk Seri Tengku Zafrul Abdul Aziz said this was to prevent other countries from using Malaysia as a transhipment point to circumvent US tariffs.
Zafrul said the ministry is aware of products from countries facing higher US tariffs being transhipped here and relabelled as Malaysian made.
“Since this issue has arose, we’ve decided to revoke all certification privileges that were given to business councils and trade associations and bring it all back under Miti.
“Many complained about this, so we decided from tomorrow onwards only Miti will handle the certifications,” he said during today’s special parliamentary sitting on the US tariffs.
Tengku Zafrul said the government is committed to upholding the integrity of international trade practices, adding that any such attempts to circumvent the tariffs by faking the declarations will be a punishable offence.
Last month, Bloomberg reported that China-based brokers are rerouting goods through Malaysia and falsely labelling them as Malaysian to avoid steep US tariffs on Chinese imports.
The Trump administration has imposed retaliatory tariffs of up to 145 per cent on China.
US online sellers have reported a surge in unsolicited offers to undervalue shipments or misdeclare their origin, raising legal and ethical concerns.
Experts previously warned that Malaysia’s trade reputation could suffer if the country becomes a convenient cover for tariff evasion amid escalating US-China tensions.
In April 2025, the Trump administration imposed a 24 per cent “reciprocal” tariff on Malaysian imports to the United States, as part of a broader “Liberation Day” trade policy that also included a universal 10 per cent tariff on most imports from other countries.
This is currently on a 90-day pause, with the universal rate being imposed.
