10 per cent tariff by US not a safe ceiling, must act now – industry expert
THE 10 per cent tariff currently imposed by the United States on Malaysian goods should not be regarded as a guaranteed ceiling, as the rate could come under review if Washington is not satisfied with Malaysia’s efforts to address its concerns, said ...
Industry expert Datuk Seri R. Jeyenderan has warned that the 10 per cent tariff imposed by the United States on Malaysian goods should not be considered a guaranteed ceiling. Jeyenderan, who has over 30 years of maritime experience, stated that the 10 per cent rate could come under review if the US is not satisfied with Malaysia's efforts to address its concerns.
He emphasized that businesses should remain cautious, as further measures could be considered depending on the outcome of the US investigation. This investigation is particularly important due to the ongoing examination of structural excess capacity in the maritime sector, which involves Malaysia and several other economies.
Jeyenderan highlighted the importance of Malaysia's ability to trace goods through the supply chain as a crucial aspect of defending its controls in the investigation. He stressed that weak records could make it difficult to distinguish genuine Malaysian production from goods merely passing through, potentially undermining credibility.
Addressing concerns raised by the US over goods moving through third countries, Jeyenderan emphasized the need for strong transhipment controls to maintain Malaysia's defence in the investigation.
The expert also urged the Malaysian Investment, Trade and Industry Ministry (MITI) and Customs to gather verified industry data, audit cargo movements, and demonstrate effective enforcement of forced-labour import restrictions. He called for a clear written determination on permitted storage and blending, correct declarations, and the resulting classification and tax treatment of K8 petroleum cargo.
By resolving these matters, Malaysia would provide businesses with certainty and strengthen its ability to defend its controls internationally.
Jeyenderan stressed that addressing any weaknesses identified through the US investigation promptly and transparently was essential. He advised Malaysia to demonstrate not only the existence of rules but also their proper implementation, monitoring, and enforcement. With the US expected to announce the findings of its investigation into excess capacity within three to four weeks, Jeyenderan highlighted the urgency for Malaysia to take action and strengthen its evidence to support its stance in the investigation.
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