Oil blending requires strict control and documentation to uphold nation’s image - expert

Oil blending activities require strict adherence to licensing conditions and thorough documentation, as outlined by Customs Director-General. Dr Madzli Harun, a maritime and customs expert, emphasized the importance of obtaining written approval when blending is required, along with comprehensive records to ensure legal compliance and transparency.

He explained that blending can change a product's composition and specifications, making it crucial to maintain clear, accurate documentation of quantities, cargo movements, and conditions before and after blending. Relevant documents such as contracts, Bills of Lading, and cargo manifests must be aligned to verify that declared information matches actual transactions and goods.

If an approved storage facility is used for blending, additional activities must be reviewed against the license scope and regulations. Dr Harun highlighted that incomplete documentation or disparities between records and the actual cargo could lead to doubts about goods declarations, regulatory compliance, and tax treatment. He stressed the need for thorough audits to reconcile oil volumes documented with actual records.

Concerning cross-border trade, he noted that determining the origin of goods and eligibility for trade preferences relies on rules of origin and supporting documents. Operators must ensure all transactions meet regulatory requirements, while authorities must maintain sufficient records to evaluate compliance and tax implications.

Dr Harun warned that unmonitored, unauthorized oil blending activities could endanger safety, integrity, and public trust. Maritime expert Nazery Khalid concurred, emphasizing that such unapproved blending, lacking proper monitoring, standards adherence, or documentation, poses significant risks to health, safety, and regulatory enforcement.

He stressed the necessity of stringent controls, including approval and documentation, to protect the Customs system and prevent disputes between industry stakeholders and authorities.