A K8 declaration is used for certain goods temporarily brought into Malaysia under customs arrangements, including cargo intended for transshipment rather than domestic sale or use.
PETALING JAYA: A businessman has called on the Ministry of Finance (MOF), Royal Malaysian Customs Department (RMCD) and Petroliam Nasional Bhd (PETRONAS) to provide clearer guidance on the regulatory and tax treatment of petroleum cargo handled under the K8 declaration procedure.
Maritime Network Sdn Bhd chief executive officer Datuk Seri Jeyenderan Ramasamy said greater clarity was needed on the procedures governing petroleum cargo that is temporarily brought into Malaysia for transshipment, including circumstances where different cargoes may be stored in shore tanks at Tanjung Langsat Port, Johor.
His call followed an Aug 20 letter allegedly from MACC Records and Information Division, which stated that the commission had reviewed concerns relating to the K8 declaration procedure following checks with RMCD, MOF and PETRONAS.
According to Jeyenderan, the letter stated that the review had not established a basis for an offence under the MACC Act 2009 and that no government revenue leakage had been identified at that point.
“Following MACC’s clarification, the matter now requires a clear explanation from the relevant regulatory and tax authorities.
“The industry needs to understand whether the practices in question are permitted, what documentation is required and how any applicable tax treatment is determined,” he said in a statement today.
A K8 declaration is used for certain goods temporarily brought into Malaysia under customs arrangements, including cargo intended for transshipment rather than domestic sale or use.
Jeyenderan said clearer guidance would help industry participants understand their obligations and ensure that petroleum cargo handled through transshipment operations is managed in accordance with applicable customs, regulatory and tax requirements.
He said questions had previously been raised about the possible commingling of different petroleum cargoes in shore tanks following vessel discharge, adding that such operations could raise practical questions concerning cargo identification, documentation, valuation and tax treatment.
“MACC’s clarification addresses the question of whether there is a basis for an offence under the MACC Act.
“However, there remains a need for the relevant authorities to clearly explain the regulatory and tax position,” he said.
The comments come after Transport Minister Anthony Loke said on Aug 13 that his ministry would seek clarification from MOF regarding questions surrounding the tax treatment of commingled petroleum cargo.
Loke was reported to have said the ministry had not been informed of any new taxation relating to such cargo and that matters concerning customs and taxation fell within the relevant authorities’ jurisdiction.
Separately, Tebrau MP Jimmy Puah Wee Tse said he intended to raise in Parliament concerns over the reported uncertainty surrounding the tax treatment of commingled petroleum cargo stored in shore tanks at Tanjung Langsat Port.
Puah, who is also a member of the Parliamentary Special Select Committee on Economy and Finance, said he would seek to have the relevant parties provide clarification and discuss possible ways to address the issue.
The calls for clarification concern the interpretation and application of existing procedures and do not, by themselves, establish that any company or individual has breached Malaysian law or caused revenue losses.
