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.
Port Klang Free Zone (PKFZ) has rejected claims that Chinese businesses or cargo are linked to tariff evasion within its Malaysian free zone. The Port Klang Free Zone (PKFZ) made this statement after the US Office of Trade and Manufacturing Policy (OTMP) published a report identifying Malaysia among over 40 countries with potential risks of illegal transshipment.
The report placed Malaysia in Tier 2 due to significant economic ties with China. PTNKFZ chairman Lim Lip Eng emphasized that PKFZ operates within a strictly regulated customs and trade compliance system. He reiterated that PKFZ does not support or endorse any form of tariff evasion, false declarations, misrepresentation of origin, or circumvention of international trade measures.
All businesses and manufacturers seeking to operate within PKFZ undergo rigorous screening, due diligence, and must comply with Malaysian laws, customs requirements, and free-zone regulations. The origin of goods and export certification are administered by national authorities, not PKFZ. MITI is the sole issuer of Non-Preferential Certificates of Origin for exports to the United States, while rigid audit and verification mechanisms are in place to address potential transshipment violations.
Lim reiterated that PKFZ's commitment to legitimate, compliant businesses is unwavering, and the free zone remains open to regulatory scrutiny in cases of genuine non-compliance.
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