Latest news with #NPCOs
The Star
06-05-2025
- Business
- The Star
Support for Miti as issuer of certs
Ministry's decision will reinforce Malaysia's export credibility, say groups PETALING JAYA: The appointment of the Investment, Trade and Industry Ministry (Miti) as the sole issuer of Non-Preferential Certificates of Origin (NPCO) has received broad support from business chambers and trade groups, who say the measure will help protect Malaysia's trade integrity, particularly with the United States. However, industry leaders caution that the possibility of poor execution, lack of preparedness and insufficient infrastructure could result in bottlenecks and delays, potentially disrupting shipments and hurting exporters nationwide. The Malaysian International Chamber of Commerce and Industry (MICCI) said the government's decision to centralise the issuance of the certificates will reinforce Malaysia's export credibility and protect legitimate trade flows, particularly to the United States. ALSO READ: Experts: Move will address issue of transhipment 'Exporters are advised to stay updated on the revised application procedures and to engage closely with the ministry to ensure full compliance with the new requirements,' MICCI president Christina Tee said. To support compliance and reduce the risk of transhipment-related offences, MICCI is urging exporters to maintain clear, comprehensive and transparent supply chain records. 'Businesses must declare origin of products accurately and avoid any practices that could be perceived as relabelling or misrepresentation,' she added. ALSO READ: Miti to be sole issuer of certificates of origin for US-bound shipments She also encouraged companies to take part in awareness and capacity-building programmes organised by Miti and the Royal Malaysian Customs Department, and to cooperate fully during verification and audit exercises. However, Tee acknowledged that recent tariff measures imposed by the United States could present challenges by increasing operational costs and reducing competitiveness in the US market. 'To remain resilient, MICCI encourages its members to diversify their markets, invest in value-added strategies and enhance their product offerings. 'At the same time, businesses must maintain full compliance with all trade regulations.' Tee said MICCI supports the government's continued engagement with US counterparts to address these concerns and to promote a fair, open and rules-based trading environment. Previously, NPCOs for US-bound exports were issued by business councils, chambers or associations appointed by Miti. These trade documents verify the origin of goods for international shipments, though they are not used to claim preferential tariff rates. Tee said the chamber is prepared to forgo earnings from issuing NPCOs in the interest of national priorities. 'MICCI is willing to let go of that revenue and support Miti in issuing NPCOs so that the nation can emerge stronger during this period,' she said. Tee added that while NPCOs are a source of income, US-bound exports make up only about 15% of MICCI's certification activities. She was responding to the announcement by Miti on Monday that the ministry would serve as the sole issuer of NPCOs for US shipments effective yesterday. The ministry cautioned that any attempt to circumvent tariffs – including making false or misleading declarations of value or origin – will be treated as a serious offence. Malaysia Consortium of Mid-Tier Companies (MCMTC) honorary president Callum Chen raised concerns over Miti's preparedness to handle the new system. He said the absence of a dedicated facility and trained personnel could result in delays, as exporters now have only one access point instead of several. 'Does Miti have enough space and officers? How long will verification take, and how will exporters outside the Klang Valley be accommodated?' he asked. Chen stressed the need for a comprehensive nationwide solution. 'It's not just about space – it's about managing crowds, traffic, parking and logistics,' he said. 'Execution is key, even with a good plan,' he said, highlighting concerns from exporters in Johor, Penang, Sabah and Sarawak. The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) also called for a smoother transition as Miti takes over full responsibility on the issuance of the certificates. Its treasurer-general Datuk Koong Lin Loong proposed that the chambers assist by reviewing and verifying applications before Miti's final approval to help reduce the ministry's workload and ensure efficiency. 'We support the centralisation, but caution against implementing it too abruptly. Many exporters have yet to secure their certificates and a sudden change could lead to disruptions,' he said. Similarly, SME Association of Malaysia president Chin Chee Seong said Miti's ability to manage the transition effectively will depend on robust digital integration and timely support. He urged continued collaboration with industry associations to ensure accessibility and a better understanding of businesses' backgrounds. 'With every export requiring a certificate, this change impacts every transaction. There must be a clear, efficient process to avoid delays. The success of this transition will become clearer in the weeks ahead,' he said.
The Star
06-05-2025
- Business
- The Star
MICCI backs Miti as issuer of certs for US exports
MICCI president Christina Tee. KUALA LUMPUR: The Malaysian International Chamber of Commerce and Industry (MICCI) supports the government's decision to appoint the Investment, Trade and Industry Ministry (Miti) as the sole issuer of non-preferential certificates of origin (NPCO) for exports to the United States. Previously, business councils, chambers, or associations appointed by Miti were responsible for issuing NPCOs to the US market. MICCI president Christina Tee said the chamber is prepared to forgo some of its revenue from the issuance of the certificates in the interest of national economic priorities. 'As MICCI, we are willing to let go of that revenue and support Miti in issuing the NPCOs so that the nation can come out strong during this time,' she said during a media luncheon to celebrate the chamber's 188-year legacy in championing the business community and supporting Malaysia's economic growth. While NPCOs represented a source of income for the chamber, US-bound exports accounted for about 15% of its certifications. 'We cannot have it both ways. If we want the nation to succeed, we must make sacrifices,' she said. Tee also highlighted MICCI's stringent NPCO issuance policy, saying the chamber only issues them to members subject to annual reviews. 'If the members are not genuinely manufacturing here, we will not issue the certificate. MICCI has always maintained transparency and strict adherence to guidelines,' she said. Tee expressed confidence in Miti's experience, pointing to the certificates for countries such as India and Turkiye, which had import tax constraints. 'The concern now is whether the system can handle the significantly high workload,' she said. Previously, certificates to Turkiye or India could be processed within two weeks. With the United States now in the picture, the workload has grown, but Tee noted that Miti's team is hardworking and dedicated. 'For sea shipments, there is usually a two-week window between loading and arrival, which gives sufficient time for the certificate of origin to be processed and sent. 'The certificate can be emailed later, allowing the process to run parallel with shipment preparations. This can help avoid delays,' she added. — Bernama
The Star
06-05-2025
- Business
- The Star
MICCI backs Miti's appointment as sole issuer of NPCO for US-bound exports
MICCI president Christina Tee KUALA LUMPUR: The Malaysian International Chamber of Commerce and Industry (MICCI) fully supports the government's decision to appoint the Ministry of Investment, Trade and Industry (MITI) as the sole issuer of non-preferential certificates of origin (NPCO) for exports to the United States, effective today. Previously, business councils, chambers, or associations appointed by MITI were responsible for issuing NPCOs to the US market. MICCI president Christina Tee said the chamber is prepared to forgo some of its revenue from the issuance of these certificates in the interest of national economic priorities. "As MICCI, we are willing to let go of that revenue and support MITI in issuing the NPCOs so that the nation can come out strong during this time,' she said during a media luncheon held to celebrate the chamber's 188-year legacy in championing the business community and supporting Malaysia's economic growth. Also present at the luncheon were MICCI vice-president Renuka Indrarajah, Southern Region chairman Lee Ting Kiat, and Northern branch chairman Datuk Brian Tan. Tee went on to state that while NPCOs represent a source of income for the chamber, US-bound exports account for about 15 per cent of its certifications. "We cannot have it both ways. If we want the nation to succeed, we must make sacrifices,' she said. Tee also highlighted MICCI's stringent NPCO issuance policy, saying the chamber only issues them to members subject to annual reviews. "If the members are not genuinely manufacturing here, we will not issue the certificate. MICCI has always maintained transparency and strict adherence to guidelines,' she said. Tee expressed confidence in MITI's experience, pointing to the ministry's experience issuing certificates for countries such as India and Turkiye, which had import tax constraints. "Now, with the US imposing import taxes, MITI has once again been called to the task. The concern now is whether the system can handle the significantly high workload,' she said. Previously, certificates to Turkiye or India could be processed within two weeks. With the US now in the picture, the workload has grown, but Tee noted that MITI's team is hardworking and dedicated. "For sea shipments, there is usually a two-week window between loading and arrival, which gives sufficient time for the certificate of origin to be processed and sent. "The certificate can even be emailed later, allowing the process to run parallel with shipment preparations. This can help avoid delays. I believe MITI deserves our full support and the necessary time to manage this transition,' she emphasised. On May 5, MITI issued a statement announcing that it will be the sole issuer of NPCOs for exports to the US starting May 6, 2025. The ministry also emphasised that any attempt to circumvent tariffs, including making false or misleading declarations of value or origin, will be treated as a serious offence. MICCI traces its roots back to 1837 with the formation of the Penang Chamber of Commerce and Agriculture. It evolved through amalgamation with other chambers like the Perak Chamber of Commerce and the Selangor Chamber of Commerce in the early 20th century, ultimately restructuring and renaming itself as MICCI in 1974. - Bernama
New Straits Times
06-05-2025
- Business
- New Straits Times
MICCI backs MITI's move to centralise US export certification
KUALA LUMPUR: The Malaysian International Chamber of Commerce and Industry (MICCI) has expressed full support for the Ministry of Investment, Trade and Industry's (MITI) decision to centralise the issuance of non-preferential certificates of origin (NPCOs) for exports to the United States. MICCI president Christina Tee said the move is a strategic and necessary step to reinforce Malaysia's trade position in light of intensifying global trade tensions. Highlighting the need for a unified national strategy, Tee said the chamber is prepared to relinquish its role in issuing NPCOs for the US market—even though it contributes to MICCI's revenue. "Although it is one of our income sources, we are very confident that the amount of exports to the US certified by us is less than 15 per cent and we have a lot of other NPCO issued for other countries. "We are willing to give out 15 per cent of the NPCO to support the success of Miti as the issuer so that we can actually win in this tariff war on the national level," she told the media during an engagement session today. Previously, NPCOs for exports to the US were issued by a range of business chambers, including MICCI. However, in response to the latest US tariff hikes, MITI has opted to assume full control of the certification process to streamline compliance and reinforce export integrity. Tee expressed confidence in MITI's capabilities, noting its prior experience issuing NPCOs for other countries, including India and Turkey. "The only thing now is the workload. Such a big workload. But give them some time; they will resolve it. I can tell you, the Miti system and MIDA system during the pandemic were superb. They worked around the clock," she added. Tee pointed out that exporters shipping by sea typically have a two-week window to obtain the necessary documentation, which should help ease the transition, while noting that Miti is likely to increase resources to handle the surge in applications. MICCI has also pledged to monitor the situation closely on behalf of its members, ensuring any delays or issues are raised promptly with MITI. "What we as MICCI will do is monitor how our members are experiencing this. If there are delays, we will continue our engagement with Miti. They've already proven to be one of the most effective government agencies, especially during the pandemic," she said. On MICCI's own practices, the president stressed the chamber's strict standards in issuing NPCOs, which are only provided to vetted members actively involved in manufacturing operations in Malaysia.
