Despite Xi Jinping’s visit to Malaysia in April and his appeal for Malaysia’s help in working against U.S. tariffs, Malaysia recently announced that it will tighten control over certificates of origin for goods exported to the U.S. This will help to prevent China from using Malaysia as a country-of-origin in attempts to circumvent U.S. tariffs.
On May 6, Malaysia’s Ministry of Investment, Trade and Industry (MITI) announced that it will now serve as the sole authority for issuing Non-Preferential Certificates of Origin (NPCO) for goods exported to the U.S. Chambers of commerce, trade associations, and other previously designated entities will no longer be permitted to issue such certificates. MITI also stated that Malaysia will implement additional measures to strengthen customs compliance, including investigations and enforcement actions to curb illegal transshipment of goods through Malaysian customs to the U.S.
Amid growing U.S. tariff pressures, many Chinese companies have turned to Malaysia as a transshipment hub to circumvent trade barriers. Typically, these firms collaborate with local freight forwarders and trading companies, using NPCOs issued by Malaysian chambers of commerce to reclassify the products’ origin as Malaysian.
This new policy may make this workaround no longer a viable path for Chinese exporters seeking to avoid tariffs.
Source: Sina, May 6, 2025
https://finance.sina.com.cn/tech/roll/2025-05-06/doc-inevrkuv4538648.shtml