KUALA LUMPUR: The blockchain technology for Preferential Certificate of Origin (PCO) system from China will better facilitate Malaysia’s exports to China.
In a statement, the Ministry of International Trade and Industry (Miti) said this system, through its proposed single window framework, aims to improve trade facilitation and reduce technical barriers by offering more efficient and secure processing of goods originating from Malaysia to China.
"Furthermore, adopting an e-system between Malaysia and China could greatly benefit businesses, including streamlining the customs clearance process and reducing storage costs at China ports.
"The cooperation is also expected to provide opportunities for human resource capacity building and knowledge sharing, while the e-system supports the development of a green economy,” it said.
Miti said that to support mutual recognition of digital certificates of origin under the Regional Comprehensive Economic Partnership (RCEP) framework, Malaysia welcome the initiative to implement cooperative dialogue with The General Administration of Customs of China (GACC).
It said Malaysia will be represented by the ministry, the Royal Malaysian Customs Department (RMCD), and other related agencies which will be part of the dialogue with the GACC on the development of the system.
"Initiatives such as this blockchain system for PCO will further bolster Malaysia-China trade ties, building on China’s existing track record of being Malaysia's largest trading partner for the past 14 years, as well as the momentum created by the implementation of the RCEP between Asean countries and its five free trade agreement partners, including China,” it said.
Under RCEP, Miti said participating countries aim to eliminate or reduce tariffs on a wide range of goods, which can increase trade and investment flows between member countries, and support intellectual property rights protection, e-commerce and economic cooperation.
By lowering barriers to trade and investment, the RCEP aims to promote economic growth and enhance regional integration in the Asia-Pacific region, it added. - Bernama
