SINGAPORE

INTRODUCTION

Singapore is virtually a free port with a very short tariff. The only dutiable items are petroleum products, intoxicating liquors, motor vehicles and tobacco products. All declarations to Customs and other Government agencies are submitted for approval electronically through the TradeNet System, an Electronic Data Interchange (EDI) network.

Since 1 April 1994, a Goods & Services Tax (GST) at the rate of 3% is imposed on the importation of goods into Singapore and on the supply of goods and services in Singapore.

CLEARANCE OF COMMERCIAL CONSIGNMENTS

Clearance of commercial consignments can be done by the owner or his appointed agent.

What is the Procedure?

Goods imported into or exported from Singapore by air, sea and rail are required to be manifested by the carrier. An inward cargo manifest for imports must be submitted to Customs within 24 hours of arrival of the carrier. An outward manifest for exports must be submitted within 48 hours of the departure of the carrier.

Goods in transit discharged into the free trade zones located at the seaport and airport are free from Customs formalities. Customs declarations are required only when goods are removed into customs territory.

All declarations are required to be submitted and approved electronically through the EDI network called the TradeNet System. Duty and GST can be paid electronically through the Inter-bank Giro Scheme.

Customs conducts selective checks on goods entering customs territory through the various authorised entry points.

Goods imported in containers are selectively sealed at the checkpoints for subsequent examination at the importers' premises.

CUSTOMS VALUATION

(a) Principles of valuation

Valuation for Customs purposes is based on the Brussels Definition of Value (BDV). The basic principle of the BDV is that the dutiable value is taken to be the normal price or import price of goods at the port or place of importation. It presupposes that the sale has taken place in the open market between the buyer and seller independent of each other.

(b) Assessment of duty

The following elements are taken into account when duty is assessed for payment:

- cost;

- insurance;

- freight;

- handling charges; and

- all other charges incidental to the sale and delivery of the goods, e.g commissions and advertising expenses.

Importers who are paying duty based on ad valorem rate and where the relationship between the importer and supplier is other than ordinary will be required to furnish additional information to the Customs Documentation Branch.

(c) Assessment of GST

All goods imported into Singapore is subject to GST which is payable at 3% of the CIF (Cost, Insurance, Freight) value in Singapore dollars. If the goods are dutiable, the GST is computed based on 3% of the sum of the CIF value and customs duty.

Import Documentation

Besides information for valuation purposes, Customs will require the following information:

- name of vessel or aircraft;

- country of origin of goods;

- number of packages, marks and numbers on each package; and

- freight and insurance costs.

Exchange Rates For Customs Purposes

For computation of Customs duty and GST, all denominations of foreign currencies will be converted into Singapore Dollars. For convenience, the approved exchange rates valid for one week can be obtained from the Customs telephone dial up system called "Customs Telephone Information System" (TIPS) which operates round-the-clock. The rates are also transmitted to all TradeNet users electronically.

Preferential Treatment For Goods of ASEAN Origin

The ASEAN Common Effective Preferential Tariff (CEPT) Scheme for the implementation of the ASEAN Free Trade Area was implemented on 1 January 1993. The Scheme involves the granting of preferential tariffs to goods of ASEAN origin if they are wholly produced or obtained in an ASEAN country. A product can also be deemed to be originating from ASEAN member states if at least 40% of its contents originates from any member states. The 40 % local content requirement refers to both single country and cumulative ASEAN content.

Duty/GST Free Entitlement For Bona Fide Travellers

A bona fide traveller not below 18 years of age and arriving from countries other than Malaysia, is granted the following duty-free and GST concessions:

- 1 litre spirits (e.g brandy, whisky, gin or rum);

- 1 litre wine;and

- 1 litre beer

provided that he satisfies the proper officer of customs that he has spent not less than 48 hours outside Singapore immediately before his arrival. Travellers are not entitled to duty-free and GST concessions on cigarettes and other tobacco products.

Where GST on other goods is concerned, a bona fide traveller will be granted GST relief on the value of new articles, souvenirs, gifts and food preparations, excluding intoxicating liquors and tobacco. The relief entitlements are as follows:

(a) For travellers who are away from Singapore for less than 48 hours:

18 years of age and above - $200

Below 18 year of age - $100 (b) For travellers who are away from Singapore for 48 hours or more:

18 years of age and above - $400

Below 18 year of age - $200

CUSTOMS DUTIES ORDER - DUTY RATES

- All dutiable goods imported into or manufactured in Singapore are subject to Customs duty in accordance with the Customs Duties Order.

- Where goods are dutiable, either ad valorem or specific rate or both ad valorem and specific rates may be applied. An ad valorem rate, which is commonly applied, is a percentage of the assessed value of the imported goods such as 41% ad valorem. A specific rate is a specified amount per unit of weight or volume or other quantity such as $115 per kilogram.

- Normally, the full rate of duty is applicable to all dutiable imports. However, preferential treatment is given to imports originating from ASEAN countries under the Common Effective Preferential Tariff (CEPT) Scheme.

- Traders are advised to classify the goods they intend to import according to the tariff. For difficult cases of dutiability, they should obtain samples or literature and forward them to Documentation Branch. A fee of $50 per item of enquiry is charged for the issue of a classification advice.

- Singapore has very few imports which are subject to tariff. Out of 5,842 commodity codes under the Harmonised System, only 83 items attract duty. They are petroleum products, intoxicating liquors, motor vehicles and tobacco products.

Temporary Importation For Trade Exhibitions/Fairs/Auctions

Goods imported under a ATA carnet may not be sold and must be re-exported within the period approved for their temporary admission. Customs endorsement is required on entry and exit of the goods.

Similarly, exporters may apply for ATA carnet certificates from the Singapore International Chamber of Commerce (SICC), 6 Raffles Quay #10-01, John Hancock Tower, Singapore 048580 for temporary exports of goods to countries accepting such carnets. The list of countries accepting such carnets is obtainable from SICC.

Importers who wish to import goods temporarily into Singapore for trade exhibitions, fairs, auctions and other similar events for the public can also avail themselves to the Temporary Import Scheme (TIS) and Security Deposit Scheme (SDS), both administered by Customs. The GST payable on goods imported via these 2 schemes (with the exception of tobacco products and intoxicating liquors) would be temporarily suspended. These goods should be re-exported within the period approved by Customs for their temporary importation and GST shall be payable on those goods which are sold or not re-exported.

CONTROLLED AND RESTRICTED ITEMS

The items listed below will only be allowed entry when the import permit or authorization from the relevant authorities is produced to Customs. If no import permit or authorization is produced, Customs will detain the item and refer it to the relevant authority for consideration and approval.

PROHIBITED ITEMS

- controlled drugs and psychotropic substances;

- firecrackers;

- toy coins and toy currency notes;

- reproduction of copyright publications, video tapes or disks, records or cassettes;

- endangered species of wildlife and their by-products;

- obscene articles and publications;

- seditious and treasonable materials; and

- chewing gum.

The lists of controlled, restricted and prohibited items are not exhaustive. If you need further information or clarification, please contact:

Head, Public Relations
Customs & Excise Department
55 Newton Road #10-01
Revenue House
Singapore 307987
Telephone: [65] 3552038
Facsimile: [65] 2508663

or

Trade Development Board
230 Victoria Street
#07-00 Bugis Junction Office Tower
Singapore 188024
Telephone: [65] 3376628
Facsimile: [65] 3376898

or

Mrs Tan Kwang Yeow
Director Planning
Customs & Excise Department
55 Newton Road #10-01
Revenue House
Singapore 307987
Tel: (65) 3552140
Fax: (65) 2508663
E-mail: CED_Email@ced.gov.sg

or

Mr Chan Kok Yin
Director Revenue
Customs & Excise Department
55 Newton Road #10-01
Revenue House
Singapore 307987
Tel: (65) 3552094
Fax: (65) 2508663
E-mail: CED_Email@ced.gov.sg

INTERNET WEBSITE AND E-MAIL ADDRESS

For further information, the customs internet website, http://www.gov.sg/customs/, has details of the various customs procedures and documentation requirements. The customs E-mail address is CED_Email@ced.gov.sg. Further information on trade documentation and procedures are also available at the Singapore Trade Development Board website, http://www.tdb.gov.sg.