PETALING JAYA: Malaysian exporters are not eligible for a refund despite paying part of the previous 19% tariff imposed by the United States because it can only be claimed by the importers, says Datuk Seri Johari Abdul Ghani (pic).
The Investment, Trade and Industry Minister said the partial payments exporters had agreed to pay was a “commercial decision on their part”.
He said when the tariff was first imposed, some goods had already arrived at US ports.
“Some importers refused to accept the goods and requested that they be returned.
“In some cases, they asked Malaysian companies to absorb part of the cost.
“That was a commercial decision (between importers and exporters) and had nothing to do with the government,” Johari said in an interview.
He was commenting on a move by the US Customs authorities to begin accepting refund requests from importers following the US Supreme Court’s decision in February to strike down President Donald Trump’s sweeping global duties.
US Customs and Border Protection (CBP) said the refund process would initially cover only certain unliquidated entries or those liquidated within the past 80 days.
According to the CBP, the legal importer of record in the United States remains the party recognised by the Customs authorities for the refund process.
This means that even if Malaysian exporters absorb part of the tariff costs through commercial decisions, on record, it is the US importer who pays the tariffs.
Addressing the misconception that the tariffs are borne by Malaysian exporters, Johari said under the agreement, the tariff was levied on US importers.
“When the tariff was imposed, the impact on our exports was greater in terms of value as it made importing from Malaysia less attractive.
“While we are affected economically, we do not pay the tariff. Instead, the importer bringing in our goods is subjected to the duty imposed by the United States.
“This is why, in terms of refunds, only the importer on the other side (United States) is eligible. If the importer refuses to pay, they simply will not import from us,” he said.
Johari said although the Agreement on Reciprocal Trade being null and void is positive news and provides breathing room for Malaysian exporters, it does not mean they are completely free from duties.
He said they are currently subject to a 10% tariff under Section 122 of the US Trade Act 1974, a temporary measure pending the finalisation of a new tariff structure by Washington.
In March, Johari announced that the agreement is no longer applicable following a decision by the US Supreme Court to overturn most of the sweeping tariff measures introduced by Trump.
