Maritime expert urges Customs to clarify RM220m K8 cargo blending

Industry expert urges Malaysian Customs to clarify treatment of K8 cargo blending

Maritime expert Datuk Seri R. Jeyenderan has called on the Royal Malaysian Customs Department (JKDM) to provide clarity on whether petroleum cargoes declared under the K8 Customs procedure can be blended or mixed with existing inventory in shore tanks. The issue pertains to two shipments of 76,954.325 metric tonnes of Atlanta Crude valued over RM220 million, discharged at Tanjung Langsat, Johor, under the K8 Customs procedure.

Jeyenderan, CEO of Maritime Network Sdn Bhd, sought clarification from the Malaysian Investment Development Authority (MIDA), but was informed that the matter could only be decided by Customs.

Jeyenderan, with over three decades of industry experience, requested that Customs explicitly state if K8-declared cargo can be mixed with existing inventory and, if so, outline the necessary conditions, documentation, and regulatory requirements. He emphasized that the request is not an allegation of unlawful blending but rather seeks to establish traceability and understanding of cargo movements after entering tanks containing existing inventory.

The report highlighted that the two cargoes involved were 34,903.062 tonnes from MT Marlin Santorini in January and 42,051.263 tonnes from MT Invictus in March, with the cargo discharged at DIALOG Terminals Langsat. Jeyenderan stressed the importance of maintaining an unbroken chain of documentation, including quantities entering and leaving each tank, laboratory specifications, and movements.

He also noted that his call for clarity is not about determining compliance but about ensuring that all parties understand their roles and responsibilities, as current guidance may be subject to change if officers are transferred or retire.