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Maritime Player Seeks Clarity on Oil Cargo Mixing Procedures
๐Ÿ‡ฒ๐Ÿ‡พ Malaysia /Economy & Trade

Maritime Player Seeks Clarity on Oil Cargo Mixing Procedures

From Utusan Malaysia · (12m ago) Malay

Translated from Malay, summarized and contextualized by DistantNews.

TLDR

  • A maritime industry player urges clarification of procedures for mixing oil cargo, particularly concerning documentation, classification, and customs treatment during transfer operations.
  • The CEO of Maritime Network Sdn Bhd highlights that mixing crude oil can alter its physical characteristics, necessitating adjustments in supporting documents and potentially leading to inaccurate tax classifications.
  • Clearer guidelines are sought from authorities regarding the customs declaration status of petroleum cargo after transfer to onshore tanks, aiming to enhance regulatory certainty and compliance in the petroleum trade.

The Malaysian maritime industry is calling for greater transparency and clarity in the procedures surrounding the mixing of oil cargo. Specifically, concerns have been raised regarding the handling of documentation, classification, and customs treatment when oil is transferred between vessels and onshore storage tanks.

Datuk Seri R Jeyenderan, CEO of Maritime Network Sdn Bhd, emphasizes that mixing crude oil can fundamentally change its physical properties. This alteration necessitates corresponding adjustments in all supporting documents, from the Certificate of Origin to the Certificate of Quality. Without clear procedures, there's a significant risk of inaccurate reporting of the oil's value, classification, and tax treatment.

Dalam keadaan identiti asal kargo tidak lagi dapat dipastikan, kebergantungan kepada dokumen awal seperti Sijil Asal (Certificate of Origin) dan Sijil Kualiti (Certificate of Quality) boleh menyebabkan nilai, pengelasan atau layanan cukai dilaporkan secara tidak tepat.

โ€” Datuk Seri R JeyenderanExplaining the potential inaccuracies in reporting oil value and tax classifications due to mixed cargo.

This call for clarification is particularly pertinent in light of recent actions by the Malaysian Anti-Corruption Commission (SPRM) against individuals suspected of making false declarations to customs. The industry seeks immediate guidance from the authorities on how cargo declared under K8 statusโ€”the customs declaration for petroleum cargo before full release or tax settlementโ€”is to be treated after being transferred to onshore tanks. Such clarity is vital for ensuring compliance, facilitating audits, and bolstering confidence in petroleum transfer operations.

Sehubungan itu, kami memohon penjelasan segera daripada pihak berkuasa mengenai layanan terhadap kargo yang diisytiharkan di bawah K8, iaitu status pengisytiharan kastam bagi kargo petroleum sebelum pelepasan penuh atau penyelesaian cukai, selepas dipindahkan ke tangki darat.

โ€” Datuk Seri R JeyenderanRequesting immediate clarification from authorities on the treatment of K8-declared petroleum cargo after transfer to onshore tanks.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.