AFAM warns against misuse of Malaysia as transshipment hub to evade US tariffs

New Straits Times

05-05-2025

KUALA LUMPUR: The Airfreight Forwarders Association of Malaysia (AFAM) has issued a stern advisory to its members, importers and exporters, warning against any activity that may involve misrepresentation of origin or attempts to evade trade tariffs.
AFAM said such actions may be deemed illegal and could carry serious consequences.
"AFAM strongly condemns such practices. We have taken immediate action by writing to the Investment, Trade and Industry Ministry (Miti) to urge a firm response," the association said in a statement today.
"In our communication, we have recommended that all chambers of commerce and agencies involved in issuing Certificates of Origin exercise the highest level of scrutiny and due diligence."
The warning follows recent reports alleging that goods from China were being brought into Malaysia, falsely relabeled as Malaysian-made and exported to the United States (US) to bypass US-imposed tariffs.
According to AFAM, these activities are allegedly promoted by China-based brokers who reroute shipments through Malaysia and aggressively market the service on social media.
The association said such practices, if proven true, are unethical and could seriously damage Malaysia's international trade reputation.
"They may also jeopardise Malaysia's standing as a trusted and responsible trade partner in the global supply chain," AFAM added.
AFAM expressed full support for the Malaysian government in managing the US tariff issue through diplomatic and consultative channels.
"We reiterate our commitment to upholding the integrity of Malaysia's trade practices and maintaining our country's respected position in global commerce," it said.
Last week, the government reaffirmed its commitment to ensuring that exports genuinely reflect value-added production, following reports of Chinese goods being falsely labelled as Malaysian to evade US tariffs.
Miti Deputy Minister Liew Chin Tong reiterated Malaysia's firm stance against such practices, stressing the importance of maintaining the integrity of the nation's export system.
"We have always maintained a clear position that such practices must not happen," Liew said in response to concerns about Chinese goods being falsely labelled as Malaysian.
"If you look at my record, you will see that I have consistently advocated for this. We emphasise value-adding and we want to see value-added production taking place in Malaysia.
"Our goal is to export goods that genuinely result from Malaysian value-added processes," he said at the grand launch of Generali Malaysia's new headquarters.