Malaysia

Malaysia centralises export certification to US in new Anti-Transshipment measure

MITI will become the sole issuing authority for Non-Preferential Certificates of Origin for US-bound exports from 6 May 2025, as part of a crackdown on trade misdeclarations and transshipment risks

Updated 1 year ago · Published on 05 May 2025 3:29PM

Malaysia centralises export certification to US in new Anti-Transshipment measure
Effort to uphold the integrity of international trade and prevent the misuse of Malaysian ports as transshipment points - May 5, 2025

THE government will tighten control over its export certification process to the United States by appointing the Ministry of Investment, Trade and Industry (MITI) as the exclusive authority for issuing Non-Preferential Certificates of Origin (NPCOs) beginning 6 May 2025.

The move, announced by MITI on 5 May, is part of the MADANI Government’s broader effort to uphold the integrity of international trade and prevent the misuse of Malaysian ports as transshipment points for goods originating from third countries.

“To address the issue of possible transshipment from certain countries to the United States market through Malaysia’s entry and exit points, all Non-Preferential Certificates of Origin (NPCO) for shipment to the United States will be issued by the Ministry of Investment, Trade and Industry (MITI) with effect from 6 May 2025,” said the Ministry in its statement.

With the new directive in force, business councils, chambers, and associations—previously authorised under MITI guidelines—will no longer be permitted to issue NPCOs for shipments to the US.

MITI also emphasised that stronger enforcement mechanisms will accompany the change. The Ministry will enhance audits of certificate applicants and work closely with the Royal Malaysian Customs Department to investigate and take action against any offences related to misdeclaration or illicit transshipment.

“The Government views any attempt to circumvent tariff through wrong or false declaration, whether related to the value or origin of goods, as a serious offence,” the Ministry said.

MITI, which leads Malaysia’s efforts to attract quality investments and expand global trade competitiveness, described the measure as essential for maintaining the country’s reputation as a credible and responsible trading partner. - May 5, 2025

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