He stressed that his request should not be interpreted as an allegation that any particular party had improperly blended or mixed the cargo.
PETALING JAYA: Maritime industry expert Datuk Seri R. Jeyenderan has called on the Royal Malaysian Customs Department (RMCD) to clarify whether petroleum cargo declared under the K8 Customs procedure may be mixed or blended with existing petroleum inventory in shore tanks.
Jeyenderan said the matter concerned two petroleum shipments involving a combined 76,954.325 tonnes of Atlanta Crude, with a reported value of more than RM220 million, which were discharged at Tanjung Langsat, Johor, under the K8 procedure.
Jeyenderan, who is also chief executive officer of Maritime Network Sdn Bhd, said he had sought clarification from the Malaysian Investment Development Authority (MIDA), but was informed that the Customs treatment of the cargo was a matter for RMCD to determine.
“I approached MIDA for clarification, but was informed that the matter could only be determined by Customs. I am therefore seeking a written position from the relevant authority on the applicable Customs treatment,” he said.
Jeyenderan, who has more than 30 years of industry experience, said RMCD should clarify whether cargo declared under K8 can be mixed or blended with existing petroleum inventory in shore tanks and, if so, what conditions, documentation and regulatory requirements would apply.
“If blending or mixing is permitted, Customs should clearly set out the applicable basis, conditions and documentation requirements. If it is not permitted, the industry should also be given guidance on the appropriate procedure,” he said.
He stressed that his request should not be interpreted as an allegation that any particular party had improperly blended or mixed the cargo.
Jeyenderan said whether any such activity took place should be established through relevant operational records and other available evidence.
According to a Maritime Network report, the two shipments comprised 34,903.062 tonnes carried by MT Marlin Santorini in January and 42,051.263 tonnes carried by MT Invictus in March. The report identified several shore tanks at Dialog Terminals Langsat (DTL) in connection with the shipments.
Jeyenderan said the central issue was cargo traceability, particularly how the movement and status of petroleum cargo could be established after it entered tanks that already contained other inventory.
He said relevant records could include the quantity discharged into each tank, pre-existing inventory, subsequent product movements, laboratory specifications and quantities eventually removed or transferred.
Such records, he said, could assist the relevant authorities and industry participants in establishing a consistent documentary trail for the cargo.
Jeyenderan said Maritime Network had acted as the vessel or shipping agent for the cargo movements and was not the cargo owner, terminal operator, laboratory or Customs authority.
He said a clear understanding of the respective roles and responsibilities of the parties involved would therefore be important when assessing the relevant records and regulatory requirements.
He also said obtaining a written Customs position would provide greater certainty for businesses and help avoid reliance on informal or undocumented interpretations of regulatory requirements.
“We are asking for clarity, not a particular outcome. If the authorities determine that the procedure was compliant, that position should be clearly communicated. If additional requirements apply, those should also be identified,” he said.
