Customs Duty & GST on Imports in Singapore
All Goods that are imported into Singapore are subject to a GST of 7%, if the goods are meant for local consumption. Dutiable goods are intoxicating liquors, petroleum products, tobacco products and motor vehicles. Duties are levied on an ad valorem basis or specific rate basis. GST on all dutiable and non dutiable goods are payable on an ad valorem basis, that is 7% on the value of Goods. The GST taxable is calculated based on the CIF (Costs, Insurance and Freight) value plus all duties and other chargeable costs, whether or not shown on the invoice.
Duties and GST are temporarily suspended until the goods lie within the Free Trade Zones (FTZs), licensed, Zero GST warehouses and approved warehouses but becomes payable the moment they are moved into the Customs territory for consumption. However liquors and cigarettes cannot be stored in FTZ, similarly goods that arrive by rail or road also cannot enter FTZ. The duties are also exempted if the import qualifies under the Industrial Factory Exemption Scheme. GST is exempted if the importer qualifies under major exporter scheme. Under the preferential tariff scheme customs duties for selected imported goods originating from Singapore Free Trade Agreement (FTA) partner countries are lower or totally eliminated. But in order qualify for such preferential treatment the importer must furnish a Certificate of Origin obtained from the exporting country. In addition to the duties and GST you may also need to pay fees to Singapore Customs for supervision and inspection of your goods.
Port & Customs Procedures
Immigration and Checkpoint Authority (ICA) officers conduct checks on vehicles, cargoes and persons entering the country, and refer trade and customs matters to Singapore Customs for follow-up. Clearance procedure depends on the type of cargo and the mode of transport. The following documents should be produced to Customs when goods are cleared from the Free Trade Zone in the port areas and Changi Airport and when imported by road via the Woodlands and Tuas Checkpoints: • Customs permits, IESGP permits or Joint Customs/IESGP permits as appropriate; and • Invoices, packing lists, bills of lading/airway bills, and any other supporting documents.
Conventional Cargo
For Clearance of conventional cargo imports, Cargo Clearance Permit (CCP), that is, Customs permits, IESGP permits or Joint Customs/IESGP permits along with all commercial documents such as invoice, packing list, bill of lading etc has to be produced at the ICA checkpoint. Also for imports meant for local consumption GST has to be paid before clearance. For a consignment which requires partial clearance, the trader should produce the same permit each time for customs endorsement until the whole consignment is completely cleared. For exports of Dutiable and controlled conventional cargo Customs Permit must be produced at the exit checkpoints, before the exports. For export of non-dutiable and non-controlled goods by air or sea, the trader can clear the cargo through the checkpoint without a Customs Permit. For Air consignment, submission of Outward declaration for approval can be made within three days of the export of the cargo, whereas for sea consignment, it can be made before the departure of the vessel. In case of Exports via rail or road, the trader should produce the Outward permit at the time of export clearance.
Containerized Cargo
The procedure for clearance of containerized cargo differs from that of conventional. There are two types of containerized Cargo namely- • Full container load (FCL) - a container with goods for one consignee or with goods from one consignor. • Less than full container load (LCL) - a container with goods for more than one consignee or with goods from more than one consignor
In the Case of containerized imports, the entire process of clearing your goods from customs is paperless, yet prior to the removal of containers out of the FTZ, obtaining the relevant Customs permits is a prerequisite. The approved Customs permits and supporting commercial documents however need not be produced at the time of clearance of the containers.
FCL containers are normally not unstuffed in the FTZ. They are sealed by the ICA officers at the FTZ Out-Gates or examined and released without being sealed. Containers not requiring Customs examination will be given SNR (i.e. Sealing Not Required) facilitation. Unsealed containers may be unstuffed at any time without Customs' supervision
Containers requiring Customs examination will be sealed at the respective FTZ Out-gates. Customs seals placed on containers at the time of import should not be broken without the supervision or written permission of Singapore Customs. Sealed containers should only be unstuffed under Singapore Customs' supervision. After the sealed containers have been trucked out of the FTZ, consignees or their transport agents should make arrangements with Singapore Customs for supervision of unstuffing of the containers. For cargo entering Customs territory as containerized cargo, the trader must declare the container number in his import declaration.
LCL containers are unstuffed in the FTZ and cleared through the FTZ Out-Gates as conventional cargoes. No Customs supervision is required for the unstuffing of such containers in the FTZ.
In the case of containerized Exports the trader should obtain a CCP from Customs or the Controlling Authority prior to movement of dutiable or controlled goods for export. However, the CCP need not accompany the container at the time of clearance. Containers released from licensed or bonded warehouses must be produced together with the Release Notes at the FTZ In-Gate for Customs clearance.
Certificate of Origin Information
Certificate of Origin is a proof of nationality of the products imported. If the product qualifies under the Rules of Origin (ROO) CO will be issued certifying that the product is of Singapore Origin. Your products qualify as Singapore-made goods in either of these cases: • Your products are wholly obtained in Singapore i.e. grown or produced solely in Singapore without any imported materials. • Your products are manufactured in Singapore and Singapore is the last country where substantial transformation took place. The Rules of Origin (ROO) will be applied to determine if your manufactured products qualify as Singapore-made.
Exporters can register their manufacturing premises with the Singapore Customs to obtain CO for their products. Exporters, who do not manufacture their products, can obtain CO by submitting documentary evidence with the Customs. A Certificate of Origin can be obtained via TradeNet. Amendments on a Certificate of Origin must be endorsed by the Singapore Customs. If the Certificate of Origin sent to the exporter's buyer is lost, stolen or destroyed, he can apply for a certified true copy from the Singapore Customs. The Certificate of Origin is of two types namely Ordinary CO and Preferential CO.
An Ordinary Certificate of Origin is a document that can be used to satisfy your buyers that the products exported are wholly obtained, produced or manufactured in Singapore, depending on the Rules of Origin. The Singapore Customs has authorized 6 national agencies to issue Ordinary COs namely Singapore Commodity Exchange Ltd, Singapore Chinese Chamber of Commerce and Industry, Singapore Indian Chamber of Commerce and Industry, Singapore International Chamber of Commerce, Singapore Malay Chamber of Commerce and Industry, Singapore Manufacturers' Federation. For Ordinary COs at least 25% of the content has to be from Singapore.
While Preferential Certificate of Origin enables your buyers to claim preferential tariff treatment when importing your products under one of the Schemes of Preferences or Free Trade Agreements. Singapore Customs is the only competent authority to issue a Preferential CO. For preferential Certificate of Origin the percentage of the local content needed tends to be higher usually at least 30-50%.
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