Written by Vincent Liew and Ding Huoy Huoy
The Certificate of Country of Origin (‘COO’) is an essential trade document that certifies the origin of exported goods. It plays a vital role in international trade by confirming that goods originate from a particular country, affecting tariff rates and regulatory compliance.
In Malaysia, the issuance and use of COOs are aligned with the International Convention on the Simplification and Harmonisation of Customs Procedures. To be eligible for a COO, manufacturers, exporters, or traders must first be registered with the Companies Commission of Malaysia. Products must meet one of the following origin criteria:
a) Manufactured in Malaysia using 100% local content;
b) Manufactured in Malaysia through a transformation process that changes the tariff code classification at the six-digit level; or
c) Manufactured in Malaysia with at least 25% local content.
Recently, Malaysia has taken significant steps to strengthen its COO issuance process to preserve the integrity of its trade practices and reputation. Effective from 6 May 2025, the Ministry of Investment, Trade and Industry (MITI) will be the sole authority responsible for issuing COO for exports to the United States (‘US’). This move follows growing concerns about ‘origin washing’, a practice where exporters attempt to disguise the true origin of goods (often from China), by routing them through Malaysia to evade US tariffs.
Types of Certificates of Origin
There are two types of COOs recognised in Malaysia:
|
Non-Preferential Certificate of Origin (‘NPCO’) |
Preferential Certificate of Origin (‘PCO’) |
|
This certificate certifies the origin of goods without entitling the importer to any preferential tariff treatment. Goods are subject to import duties as outlined in the Customs Duties Order in force. |
This certificate is issued based on the requirements under free trade agreements (FTAs) and enables importers to enjoy preferential tariff rates. The PCO confirms compliance with the Rules of Origin stipulated in trade agreements. |
Non-Preferential Certificate of Origin (NPCO)
A. Application for Non-Preferential Certificate of Origin (NPCO)
MITI is now the sole issuer of NPCO for exports to the US. For all other countries, the Malaysian International Chamber of Commerce and Industry (‘MICCI’) are authorised to issue NPCO on behalf of MITI.
Applicant must submit a yearly Statutory Declaration Letter along with supporting documents as follows:
|
Manufacturer |
Trader |
|
Certificate of Incorporation / Certificate of Registration in Malaysia (Companies Act 1965) |
Certificate of Incorporation / Certificate of Registration in Malaysia (Companies Act 1965) |
|
Manufacturing licence |
Manufacturing licence and certification letter (can be submitted by the manufacturer separately if the information provided is confidential) |
|
Director’s Statutory Declaration and Form 49 |
Director’s Statutory Declaration and Form 49 |
|
Specimen of authorised signatories together with copy of identity card |
Specimen of authorised signatories together with copy of identity card |
|
List of employees |
List of employees of supplier(s) |
|
Raw material and product invoices (if applicable) |
Raw material and product invoices (if applicable) |
|
Samples/photos/catalogues (if applicable) and checklist (as stipulated by MITI) |
Samples/photos/catalogues (if applicable) and checklist (as stipulated by MITI) |
B. Application for Endorsement of NPCO
To apply for endorsement of the NPCO, the following documents are required:
- Complete NPCO form;
- Commercial Invoice and Packing List;
- Customs Export Declaration (Form K2);
- Bill of Lading or Airway Bill;
- Manufacturer’s invoice (for traders);
- Product sample, photo, or catalogue; and
- Any other relevant supporting documents.
Once an application for endorsement of NPCO is submitted, MICCI will verify the information provided in the application form against the supporting documents. If the application is ineligible, it will be rejected. If the application is approved, MICCI will notify the applicant of its decision.
*Note: MICCI only accepts applications for endorsement of NPCO for shipments within one month after the date of export. Pre-export endorsements are only allowed for air shipments.
C. Fee Schedule for NPCO via MICCI
|
Fees |
Members |
Non-Members |
|
Authentication of documents |
RM5 per copy |
RM10 per copy |
|
Certificate of Origin Forms |
RM15 per pad of 100 sheets |
RM20 per pad of 100 sheets |
*Note: No fees are charged for NPCO applications to the US via MITI.
Preferential Certificate of Origin (PCO)
A. Register with DagangNet
To begin the application process, the applicant must register online at www.dagangnet.com. Below are the required documents for registration:
|
Manufacturer |
Trader |
|
Certified true copies of Certificate of Incorporation / Certificate of Registration in Malaysia (Companies Act 1965) / Business Licence |
Certified true copies of Certificate of Incorporation / Certificate of Registration in Malaysia (Companies Act 1965) / Business Licence / Business Licence of Manufacturer |
|
Product information: product name, HS Code, brochures, process flow chart, supplier list and contact details, supplier confirmation letter |
Product information: product name, HS Code, brochures, process flow chart, manufacturer’s name, award/acknowledgement letter from manufacturer |
|
Photos of finished products, the manufacturing facility, the office, and the company signboard |
Photos of finished products, the manufacturing facility, and the company signboard |
|
Certified true copies of the company’s bank statement by the bank |
Certified true copies of the company’s bank statement by the bank |
Once approved, the applicant will receive a User ID and Password. Applicant is required to study the online tutorial provided or attend classes conducted by the Service Provider.
B. Application for Cost of Analysis (CA)
Before applying for the PCO, the applicant must apply for a CA via MITI. This includes:
- Confirming the HS code for finished products and raw materials (can be verified with the Royal Malaysian Customs Department);
- Verifying if the product qualifies under the tariff reduction schedule of a relevant FTA;
- Submitting an online application via the Electronic Preferential Certificate of Origin (ePCO) system; and
- Uploading the required documents in PDF format:
-
-
- Identified HS Code Slips (for finished goods and raw materials);
- Manufacturing Operation Licence;
- Raw material invoices;
- Product catalogues;
- Production flow chart; and
- Letter of appointment from manufacturer to trader.
-
MITI will review the application within five working days. Incomplete applications will be automatically rejected.
C. Application for PCO
Upon approval of the CA, the applicant may proceed to apply for the PCO through the ePCO system. Applications must be accompanied by:
|
Applying Before Export |
Applying After Export |
|
Invoice, Packing List |
Invoice, Packing List, Bill of Lading, Customs Form K2 |
MITI will process the application within 24 working hours. Once approved, the applicant must print the PCO on the designated PCO form and submit it to MITI for endorsement with a specimen signature.
D. Application for Endorsement of PCO
To apply for endorsement of the PCO, the following documents are required:
- Printed Certificate of Origin (on official COO forms);
- Original Invoice;
- Original Packing List;
- Original Bill of Lading; and
- Original Customs Form K2.
All endorsements must be completed by the Trade and Industry Cooperation Section of MITI, the sole certifying authority for PCO in Malaysia.
Conclusion
With stricter enforcement and centralisation of COO issuance under MITI, Malaysia aims to uphold transparency, prevent tariff evasion, and maintain its reputation as a credible trading nation. Exporters are advised to familiarise themselves with the updated procedures to ensure seamless cross-border transactions.
Published on 15 May 2025
