Maritime Expert Urges Customs to Clarify Mixing of K8 Petroleum Cargo Worth RM220 Million

KUALA LUMPUR: The Royal Malaysian Customs Department (JKDM) has been urged to clarify whether petroleum cargo declared under the Customs K8 procedure can be mixed with existing inventory in onshore storage tanks.

Maritime industry expert Datuk Seri R Jeyenderan said the matter was important in determining the procedures, conditions and documentation that must be complied with for two petroleum cargoes worth more than RM220 million that were discharged at Tanjung Langsat, Johor.

He said the two cargoes involved 76,954.325 metric tonnes of Atlanta Crude declared under the Customs K8 procedure.

Jeyenderan, who is also Chief Executive Officer of Maritime Network Sdn Bhd, said JKDM should clearly state whether the mixing or blending of K8 cargo with existing petroleum is permitted and, if so, what conditions must be met and what records must be maintained.

“If mixing or blending is permitted, Customs should clearly state the basis, conditions and documentation required. If it is not permitted, the industry should also be informed of the procedures that must be followed,” he said in a statement.

According to a Maritime Network report, the first cargo of 34,903.062 metric tonnes was carried by the MT Marlin Santorini in January, while the second cargo of 42,051.263 metric tonnes was carried by the MT Invictus in March, with several storage tanks at DIALOG Terminals Langsat also identified.

Jeyenderan said the key issue was the traceability of the cargo after it was transferred into tanks that also contained existing inventory, including how the movement, mixing or blending of the product could be recorded.

He said records such as the volume of cargo transferred into the tanks, existing inventory, product movements, laboratory results and the quantities discharged or transferred should be available to ensure that the documentation trail can be clearly reviewed.

He stressed that the request did not constitute an allegation that any unlawful mixing had taken place, but that any determination should be based on records and evidence.

Jeyenderan said Maritime Network had only acted as the shipping agent for the movement of the cargoes and was not the cargo owner, terminal operator, laboratory or Customs authority.

“We are seeking clarity, not a particular outcome. If the authorities determine that the procedure complies with the regulations, this should be clearly stated. If there are additional requirements, these should also be identified,” he said.

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