PKFZ rejects link between Chinese cargo and tariff evasion
KUALA LUMPUR: Port Klang Free Zone (PKFZ) said the presence of Chinese-linked businesses or international cargo within a Malaysian free zone should not, in itself, be interpreted as evidence of tariff evasion or illegal transshipment.
Malaysia's Port Klang Free Zone (PKFZ) has rejected claims made by the United States Office of Trade and Manufacturing Policy (OTMP) that the presence of Chinese-linked businesses or international cargo within a Malaysian free zone is evidence of tariff evasion or illegal transshipment. PKFZ chairman Lim Lip Eng emphasized that the free zone operates within a highly regulated customs and trade compliance framework, and all investors, manufacturers, traders, and logistics operators seeking to establish operations within PKFZ are subject to stringent screening, due diligence, and regulatory requirements.
Lim clarified that matters relating to the origin of goods and export certification are governed by the appropriate national authorities and are not determined by PKFZ, and that the Ministry of Investment, Trade and Industry (MITI) has been the sole issuer of Non-Preferential Certificates of Origin (NPCO) for exports to the United States since May 6, 2025.
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