A BUSINESSMAN has urged the Ministry of Finance (MOF), Royal Malaysian Customs Department and Petronas to issue a clear and authoritative statement on the regulatory and tax treatment of petroleum cargo handled under the K8 declaration procedure.
Maritime Network Sdn Bhd chief executive officer Datuk Seri Jeyenderan Ramasamy said the relevant authorities should clarify whether petroleum cargo commingled in shore tanks at Johor’s Tanjung Langsat Port is permitted, what documentation is required and how such cargo should be treated for taxation purposes.
His call followed an official letter dated Aug 20 from the Malaysian Anti-Corruption Commission Records and Information Division director Zuhairie Abu Bakar, which stated that the commission had reviewed concerns surrounding the K8 declaration procedure through cross-checks with the Customs Department, MOF and Petronas.
Jeyenderan said the letter stated that the review found no basis for an offence under the MACC Act 2009 and that no government revenue leakage had been identified to date.
“Following MACC’s clarification, the issue now requires a clear explanation from the relevant regulatory and tax authorities.
“The industry needs to know whether the practice is permitted, what documentation must accompany the cargo and how the tax treatment is determined,” he said in a statement here today.
K8 is a Customs declaration used when goods, including oil cargo, are brought into Malaysia temporarily for transshipment and are not meant to be sold or used locally.
Jeyenderan said the clarification was important to remove uncertainty among industry players and ensure that petroleum cargo handled through transshipment operations complied with existing regulatory, customs and tax requirements.
He said concerns had previously been raised over the alleged commingling of different petroleum cargoes in shore tanks following vessel discharge, which could create questions over cargo identification, documentation, valuation and tax assessment if not properly regulated.
“MACC’s finding addresses the question of whether there is an offence under the MACC Act.
“However, there remains a need for the relevant authorities to explain the regulatory and tax position clearly,” he said.
On Aug 13, Transport Minister Anthony Loke Siew Fook said the ministry would seek clarification from MOF regarding concerns over the tax treatment of commingled oil cargo.
Loke said his ministry had yet to be informed of any new taxation involving such cargo, adding that the matter falls under the purview of Customs and MOF.
Meanwhile, Tebrau MP Jimmy Puah Wee Tse said he would raise in Parliament concerns over uncertainty surrounding taxation on commingled oil cargo stored in shore tanks at Tanjung Langsat Port.
Puah, who is also a member of the Parliamentary Special Select Committee on Economy and Finance, said he would urge the committee to call the relevant parties to provide clarification and discuss a resolution to the issue. – August 24, 2026
