KUALA LUMPUR (April 4): An e-system to support mutual recognition of digital certificates of origin under the Regional Comprehensive Economic Partnership (RCEP) framework is being developed to better facilitate Malaysia’s exports to China, said the Ministry of International Trade and Industry (Miti).

The preferential certificate of origin (PCO) system, using blockchain technology from China, aims to improve trade facilitation and reduce technical barriers by offering more efficient and secure processing of goods originating from Malaysia to China, the ministry said in a statement.

"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.
 
“Initiatives such as this blockchain system for the 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 (FTA) partners, including China,” the ministry added.

Miti said Malaysian authorities, including the ministry and the Royal Malaysian Customs Department would hold a dialogue with the General Administration of Customs of China on the development of  the system.

Under RCEP, 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, RCEP aims to promote economic growth and enhance regional integration in the Asia-Pacific region.