TARIFF AND DUTY RATES

All dutiable goods imported into or manufactured in Singapore are subject to Customs duty. There are four broad categories of dutiable goods in Singapore, namely intoxicating liquors, tobacco products, motor vehicles and petroleum products. The duty rates are indicated in the Schedule to the Singapore Customs Duties Order.

There are three types of Customs duties as follows:

• ad valorem rate where duty is calculated as a percentage of the assessed value of the dutiable goods;

• specific rate where duty is based on a specified amount per unit of weight, volume or quantity of the dutiable goods; and

• composite / compound rate which is a combination of specific and ad valorem duties. It is based on either:

  • a percentage or a specified amount and shall be the greater of the amounts calculated on such rates; or

  • a percentage and a specified amount and shall be the aggregate of such percentage and amount.

GST is levied on all imported goods at the rate of 3% of the CIF value of the goods. If the goods are dutiable, the GST will be collected together with the Customs duty. Importers who are registered with the Inland Revenue of Singapore (IRAS) as GST taxable persons, may offset the GST (input tax) paid by them on the importation of goods, against the GST collected (output tax) on supplies of goods and services made by them. The importer will have to account to IRAS on the net amount to be claimed/paid.

In the case of dutiable goods, the GST together with the Customs duty will be suspended on importation when such goods are removed to a licensed warehouse for storage. The GST and the Customs duty will be payable when the goods are later released from the warehouse for local consumption.

For imported non-dutiable goods which are removed to a bonded warehouse for storage or imported under the Major Exporter Scheme (MES), the GST will also be suspended. The GST is payable to Customs when the goods are removed from the bonded warehouse for local consumption. In the case of goods imported under the MES, the importer will charge GST if the goods are sold locally and account for the GST to IRAS.

If the goods are deposited in the free trade zone (FTZ) pending re-export or transshipment, the GST payable is suspended. The GST is payable on goods used or consumed in the FTZ as well as on their removal into the Customs territory for local consumption.

The types of goods and persons eligible for duty exemption and/or GST relief are specified in the following legislation:

1. Customs Duties (Exemption) Order; and

2. GST (Imports Relief) Order.

VALUING YOUR PRODUCTS

The World Trade Organisation (WTO) Customs Valuation Agreement is adopted for assessing Customs duty on goods subject to import duty.

The Brussels Definition of Value (BDV) is adopted for assessing Customs duty on goods subject to excise duty. The definition states that the Customs value shall be the normal price of goods i.e. the price which the imported goods would fetch at the time when the duty becomes payable on a sale in the open market between the buyer and the seller independent of each other.

Generally, the taxable value for GST is calculated based on the CIF (cost, insurance and freight) value plus all Customs duties payable. Where there is no price payable for the goods, or if the price paid is not the sole consideration, the open market value as determined by Customs plus the duty payable, if any, will be used to compute the GST payable.

For locally manufactured goods subject to excise duty which have been supplied or sold in the warehouse and where price is the sole consideration, the GST will be based on the value of the sale (normally the invoice price) or the value of the last sale if there has been more than one sale, plus the duty payable if any.

CLEARING IMPORTS

Goods in transit in a Free Trade Zone (FTZ) or discharged into a FTZ are free from Customs formalities. No Customs permit is required for goods which are discharged directly from a vessel berthed alongside the wharf or an aircraft into a FTZ. Customs declarations are required only when the goods are removed from the FTZ into Customs territory.

Under the Customs Act and the Regulation of Imports and Exports Act, all importers and exporters are required to apply for the appropriate permits for all goods imported into and exported from Singapore.

Declarations for movement of goods are submitted and processed electronically through the TradeNet (an EDI system). The declarant can be the trader or his authorised freight forwarder or cargo handling agent, who must be registered with Customs.

Approved Customs permits would be transmitted back to the trader who will print the permits at his own premises for clearance of the goods at the checkpoints. Payment of Customs duty and/or GST are made via "Inter-Bank GIRO" (an electronic fund transfer system). The Customs duty and GST on goods for local consumption have to be paid before the goods are released into Singapore.

All imports (conventional and containerised cargo) must be covered by the relevant Customs permits, invoices, packing lists, bills of lading/airway bills, and any other supporting documents. For conventional cargo, the relevant permits and supporting documents must be produced at the checkpoint for clearance. For containerised cargo selected for Customs examination, the relevant permits and supporting documents must be produced when Customs supervise the unstuffing of the containers.

Customs may conduct selective checks on the imports. Conventional cargoes will be examined and released at the Customs checkpoints. For containerised cargoes, the containers may be sealed by officers of Customs at the entry points or released without being sealed. Sealed containers must be unstuffed under Customs supervision at the importers’ premises. Containers that are not sealed may be unstuffed by the importers or his authorised cargo handling agents without Customs supervision.

The movement of goods through Customs territory, from one entry point to an exit point must be covered by the relevant Customs permits. Transhipment containers are sealed by Customs at the first checkpoint. The Customs seal will be verified and retrieved at the second checkpoint. For transhipment of conventional cargo, Customs may apply appropriate markings or wire seal to the goods at the first checkpoint, sufficient for the identification of the goods and the verification that the goods for transhipment have not been tampered with. The Customs officers at the second checkpoint would verify the markings or wire seal used.

CLEARING EXPORT

Customs permits are required for clearance of the following types of export cargo:

• dutiable goods from licensed warehouses;

• goods under the Bonded Warehouse Scheme;

• goods brought in under the Temporary Import Scheme; and

• goods being exported under the Temporary Export Scheme.

The export of controlled goods has to be covered by the relevant permits approved by the respective Controlling Authorities. The export of non-dutiable and non-controlled goods must be covered by a Trade Development Board (TDB) Outward permit. For air and sea consignments, TDB allows the submission of an Outward declaration for approval within 3 days of export of the cargo. Where the export of such goods is effected by road, the trader should have the TDB Outward permit at the time of export.

GOODS WITH PROHIBITIONS, CONTROLS AND RESTRICTIONS

The following items are prohibited from entry into Singapore:

• Intoxicating liquors and cigarettes which are marked 'Singapore Duty Not Paid' on the labels, cartons or packets as well as cigarettes with the prefix 'E' printed on the packets

• Chewing gum

• Chewing tobacco and imitation tobacco products

• Cigarette lighters of pistol or revolver shape

• Controlled drugs and psychotropic substances

• Endangered species of wildlife and their by-products

• Firecrackers

• Obscene articles, publications, video tapes and software

• Reproduction of copyright publications, video tapes or disks, records or cassettes

• Seditious and treasonable materials

• Toy coins and toy currency notes

• Locally brewed beer and stout marked 'Brewed for Export'

The items listed below require an import licence or authorisation from the relevant controlling authority for their entry into Singapore:

TEMPORARY ADMISSION

Goods, apart from intoxicating liquors and tobacco, may be temporarily imported into Singapore for repairs, public exhibitions, fairs, auctions and other similar events for the public without the payment of GST under the Temporary Import Scheme (TIS) or ATA Carnet Scheme.

Goods may be temporarily imported under the TIS, either as hand-carried items or as freight cargo. The relevant Customs permits have to be declared for the temporary importation and the re-exportation of the goods.

A security equivalent to 100% of the potential duty and GST, to be furnished in the form of a bank guarantee, is required for the temporary impression of dutiable goods and goods temporarily imported for repairs or modifications under the TIS. For non-dutiable goods temporarily imported for exhibition, the BG quantum is 30% of the potential GST.

The BG required may be waived if all the goods imported for the exhibition are to be re-exported and there will be no local sale, transfer or disposal of the goods. In lieu of the BG, a letter of undertaking must be put up by the organiser at least one month prior to importation of the goods.

The importer/declaring agent will pay duty/GST on items listed in the temporary import permits that are sold, transferred or disposed of locally and on any other items that are not exported. The GST will be based on the declared value or selling price, whichever is the higher. If dutiable goods are sold, the duty must be included when computing the GST.

If the goods for the exhibition are to be hand-carried into Singapore by air, sea, road or rail, the exhibitor's local declaring agent must fax a copy of the Customs temporary import permit to the exhibitor who will produce the document together with the goods to Customs for verification and endorsement at the entry point.

If the unsold exhibition goods are to be hand-carried out of Singapore, the exhibitor's local declaring agent must apply for a Customs export permit at the end of the exhibition. The exhibitor or the local declaring agent must produce the export permit together with the goods for Customs verification and endorsement at the exit point.

A foreign exhibitor may import exhibition goods into Singapore using ATA carnet(s), in lieu of furnishing a security and submitting a Customs declaration. When the exhibitor arrives in Singapore, he must produce the carnet together with the goods to Customs at the entry point for verification and endorsement.

When goods covered by a carnet are taken out of Singapore, the foreign exhibitor must produce the carnet together with the goods to Customs at the exit point for verification and endorsement. GST will be recovered from the carnet holder on any item that is unaccounted for.

OBTAINING REFUNDS/DRAWBACKS ON YOUR DUTY PAYMENT

Not applicable.

LICENSED/BONDED WAREHOUSE

Importation of non-dutiable goods subject to GST can be stored in a bonded warehouse pending re-export. The GST on the imported goods will be suspended so long as the goods remain in the warehouse. GST is not charged on the sales of goods while they are warehoused therein. There is no GST payable on the goods when they are removed for export. GST is only charged when the goods are removed from the warehouse for local consumption. Similarly, the GST is suspended when the goods are transferred from one bonded warehouse to another.

The following goods may be placed in a bonded warehouse:

• approved commodities such as coffee, pepper, rubber, base metal (copper, nickel, aluminum, lead, zinc and tin), crude oil and petroleum products, and other commodity considered on a case by case basis; and

• imported non-dutiable goods meant for re-export or substantially destined for re-export.

All bonded warehouse operators are required to furnish a bank/finance company guarantee as security to cover the potential GST payable on the imported goods held at any one time in the bonded warehouse. An annual licence fee is also payable for operating a bonded warehouse.

The licensee is accountable for the GST payable on the goods and he is required to maintain proper inventory records for goods stored in the bonded warehouse. Customs may conduct periodic audits, including spot checks on the physical stocks stored in the bonded warehouse. Movements of goods in and out of the bonded warehouse must be covered by the relevant Customs permits.

Goods stored in a bonded warehouse can only undergo simple value-added processes that do not alter the original characteristics of the goods. The approved value-added activities permitted in the warehouse are as follows:

1. Re-packing;

2. Consolidation and de-consolidation;

3. Kitting or "pick & pack"; and

4. Packing and labeling.

All dutiable imports of liquors and tobacco (including cigarettes) must be stored in a licensed warehouse. The duty and GST on the imported goods will be suspended so long as the goods remain in the warehouse. Duty and GST will be collected on the goods when they are removed from the warehouse for local consumption.

The licensee is required to furnish a bank/finance company guarantee as security to cover the total potential Customs duty and GST payable on the imported dutiable goods held at any one time in the licensed warehouse. An annual licence fee is also payable for operating a licensed warehouse.

The licensee is accountable for the due and GST payable on the goods and he is required to maintain proper inventory records for goods stored in the licensed warehouse. Customs may conduct periodic audits, including spot checks on the physical stocks stored in the licensed warehouse. Movements of goods in and out of the licensed warehouse must be covered by the relevant Customs permits.

Singapore adopts the dual channel system for passenger clearance. Passengers carrying items within their GST/duty-free allowance may clear Customs via the Green Channel. All items that exceed the GST/duty-free allowance must be declared to Customs at the Red Channel. Customs may also select passengers from the Green Channel for checks.

For a bona fide traveler of 18 years and above, arriving from countries other than Malaysia and having spent not less than 48 hours outside Singapore immediately before arrival, he/she may be granted GST relief/duty-free allowance on the following:

1. 1 litre of spirits;

2. 1 litre of wine; and

3. 1 litre of beer.

There is no GST relief/duty-free allowance for cigarettes and other tobacco products.

Bona fide travelers, other than holders of a work permit, employment pass, student's pass, dependant's pass or long term pass, will be given GST relief of the following value for new articles, souvenirs, gifts and food preparations, excluding liquors and tobacco:

1. Travelers away from Singapore for less than 24 hours:

   • 18 years of age and above - $50

   • Below 18 years of age - No relief

2. Travelers away from Singapore for 24 hours or more but less than 48 hours:

   • 18 years of age and above - $150

   • Below 18 years of age - $50

3. Travelers away from Singapore for 48 hours or more:

   • 18 years of age and above - $300

   • Below 18 years of age - $100

Goods exceeding the GST/duty-free allowance can be brought into Singapore only on payment of Customs duty and GST on the excess items. Customs duty and GST have to be paid on any goods that are imported for commercial, business or trade purposes and goods carried on behalf of other persons.