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Maritime and trade experts are calling for strict adherence to origin declarations for palm oil blends processed in Malaysia, warning that inaccurate labelling could compromise the integrity of the nation's exports in international markets. Dr Madzli Harun, a senior lecturer at Universiti Malaysia Terengganu (UMT) Faculty of Maritime Studies, stated that while blending is a standard industry practice, it does not automatically grant a product Malaysian-origin status.
According to Dr Harun, a product's country of origin is determined by specific Rules of Origin (RoO). These rules evaluate processing methods, raw material content, and criteria set by trade regulations. 'If the original bill of lading indicates that refined, bleached, and deodorised (RBD) palm olein originates from Indonesia, blending it in Malaysia does not inherently change its origin to Malaysian,' he explained, noting that any amendments to shipping documents must be backed by valid documentation.
Under the Asean Trade in Goods Agreement (Atiga), origin is determined by Regional Value Content (RVC) and changes in tariff classification. Dr Harun emphasised that operators cannot simply mix Indonesian and Malaysian oils and label the result 'Made in Malaysia' without meeting these regulatory thresholds. He urged the Royal Malaysian Customs Department (RMCD), the Malaysian Palm Oil Board (MPOB), and the Ministry of Investment, Trade and Industry (Miti) to rigorously audit import-export records and traceability documentation.
Echoing these concerns, maritime expert Prof Nazery Khalid highlighted that inaccurate documentation poses significant risks. He warned that if a blended cargo were found to be contaminated or hazardous, Malaysia's reputation as a top-tier producer would suffer. Referring to a recent food poisoning incident in Taiwan involving contaminated cooking oil, he stressed that Malaysia must ensure its processing, documentation, and shipments meet the highest quality and integrity standards to avoid cargo rejections and legal repercussions.
Non-compliance or false declarations regarding origin can lead to legal action under Section 133 of the Customs Act 1967, which carries serious penalties for established offences.
Source: Malay Mail