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Airfreight carriers urge action over China goods routed through Malaysia to dodge US tariffs
Airfreight carriers urge action over China goods routed through Malaysia to dodge US tariffs

Malay Mail

time05-05-2025

  • Business
  • Malay Mail

Airfreight carriers urge action over China goods routed through Malaysia to dodge US tariffs

KUALA LUMPUR, May 5 — The Airfreight Forwarders Association of Malaysia (AFAM) is calling for stricter oversight after reports surfaced of Chinese goods being rerouted through Malaysia to evade US tariffs. The group said it had urged the Ministry of Investment, Trade and Industry to step in and ensure rigorous checks on certificates verifying the origin of goods. AFAM highlighted that some brokers in China are marketing these services online, potentially encouraging illegal relabelling of products. 'These actions, if true, are highly unethical and risk seriously undermining Malaysia's international trade reputation. 'They may also jeopardize Malaysia's standing as a trusted and responsible trade partner in the global supply chain,' it said in a statement. The association said it has issued a strong advisory to local importers and exporters against engaging in any form of origin fraud. AFAM also affirmed its support for the Malaysian government's diplomatic efforts to handle US trade tensions and protect the country's standing. Earlier today, Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Abdul Aziz said his ministry will become the sole issuer of Non-Preferential Certificates of Origin (NPCO) for all exports to the US from tomorrow over this issue.

AFAM warns against attempts to circumvent US tariffs
AFAM warns against attempts to circumvent US tariffs

Malaysian Reserve

time05-05-2025

  • Business
  • Malaysian Reserve

AFAM warns against attempts to circumvent US tariffs

THE Airfreight Forwarders Association of Malaysia (AFAM) 'strongly condemns' alleged attempts by China-based brokers rerouting shipments through Malaysia and promoting such services aggressively on social media platforms. In a statement released today, AFAM said it noted with concern recent media reports alleging that goods originating from China were being imported into Malaysia, relabeled as Malaysian products, and subsequently exported to the US to circumvent US-imposed tariffs. It noted reports that the practice was being facilitated by China-based brokers, though the statement did not name any parties that may have been involved. 'These actions, if true, are highly unethical and risk seriously undermining 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 strongly condemns such practices. We have taken immediate action by writing to the Ministry of Investment, Trade and Industry (MITI) to urge a firm response,' it said. In its communication, AFAM said it has recommended that all chambers of commerce and agencies involved in issuing certificates of origin exercise the highest level of scrutiny and due diligence. AFAM has also issued an advisory to all its members, importers and exporters to warn against participation in any activity that may be construed as misrepresentation of origin or an attempt to evade international trade tariffs, which may be deemed illegal. 'AFAM fully supports the Government of Malaysia in managing the US tariff issue through consultative and diplomatic channels with the US Government. 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. –TMR

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

New Straits Times

time05-05-2025

  • Business
  • New Straits Times

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

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.

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