Jeyenderan said the issue was particularly relevant to operations at Tanjung Langsat Port, where petroleum cargo may be discharged from vessels into shore-based storage facilities as part of transhipment and storage activities.
PETALING JAYA: Businesses involved in the shipping and petroleum sectors are seeking greater clarity on the customs and tax treatment of petroleum cargo that may be commingled in shore tanks at Tanjung Langsat Port, Johor, according to Maritime Network Sdn Bhd chief executive officer Datuk Seri Jeyenderan Ramasamy.
Jeyenderan said clearer guidance from the Royal Malaysian Customs Department (RMCD) would help industry players understand how such cargo should be documented, classified and assessed for tax purposes, where applicable.
With more than 30 years of experience in the maritime sector, he said the issue was particularly relevant to operations at Tanjung Langsat Port, where petroleum cargo may be discharged from vessels into shore-based storage facilities as part of transhipment and storage activities.
He said industry players could face uncertainty if there were insufficiently clear guidelines governing the regulatory and tax implications of commingling different consignments in storage tanks.
“Where commingling forms part of operational practices, businesses need clear guidance on the documentation and regulatory requirements that apply.
“Clear requirements on documentation, cargo classification, valuation and tax assessment would help companies understand their obligations and reduce the risk of differing interpretations,” he said in a statement today.
A maritime expert with over 30 years of experience, Jeyenderan said greater clarity could also help businesses manage operational costs and minimise the possibility of delays or disagreements arising from uncertainty over applicable requirements.
“If the practice is permitted, the requirements should be clearly explained. If tax is applicable, businesses need to understand how it is calculated. If it is not subject to tax under the relevant rules, that should also be clearly stated,” he said.
He stressed that his call was for greater clarity rather than preferential treatment for any particular company or industry participant.
“We are not asking for special treatment. We are asking for clarity. Businesses need to know what is permitted, what documentation is required and what tax treatment applies,” he said.
Jeyenderan also urged RMCD to engage with industry representatives to better understand the operational processes involved in petroleum cargo handling at Tanjung Langsat Port, particularly following vessel discharge and during storage and transhipment activities.
He had previously raised concerns about the potential commingling of petroleum cargo in shore tanks following vessel discharge, saying that such operations could present documentation, traceability and compliance considerations that would need to be addressed through appropriate procedures.
Jeyenderan said that when petroleum products from different consignments are stored together, maintaining accurate records of the cargo’s origin, quantity and relevant characteristics becomes important.
He added that appropriate documentation and record-keeping would help ensure that any subsequent regulatory, commercial or tax assessment is based on accurate information.