agap conference 2012 importing goods into singapore - caroline berube, hjm asia law llc

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Importing Goods into Singapore

Alliott Asia Pacific Conference – Bali 2012

Caroline BerubeManaging Partner

Guangzhou Shanghai Singapore www.hjmasialaw.com

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SINGAPORE

Quick Stats

• Singapore is a regional trading hub and the Port of Singapore is amongst the world's biggest ports. It is the second biggest traffic center for container transshipment after Hong Kong.

• Singapore is ranked No. 1 for ease of doing business according to Doing Business World bank Report 2-11


Foreign Trade Indicators 2007 2008 2009 2010 2011

Imports of Goods (million USD) 263,155 319,780 245,785 310,791 365,771

Exports of Goods (million USD) 299,308 338,176 269,833 351,867 409,504

Imports of Services (million USD) 74,405 87,202 79,117 96,255 110,491

Exports of Services (million USD) 84,824 99,002 93,245 112,061 125,068

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REGISTRATIONS


• The following types of Traders are required to register their companies with the Singapore Customs:

TradeNet users Shipping agents/Airlines

Participants of the Inter-Bank GIRO scheme

Applicants of duty/GST exemption on goods other than used

personal and household effects

Shipping agents/Airlines

Operators of licensed warehouses and Zero GST (ZG) warehouses

*Note that a trader must be a company or business registered with the Accounting and Corporate Regulatory Authority of Singapore (“ACRA”).

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TAXES AND DUTIES


• GST applicable to imports

GST and /or duty is payable on all imported goods irrespective of whether the person importing the goods is a taxable person.

GST is calculated based on the CIF (Costs, Insurance and freight) value plus any applicable customs duty.

GST is applied on an ad valorem basis.

GST is currently 7%.

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TAXES AND DUTIES


• Import duties applicable

More than 95% of all goods imported to Singapore enter duty free.

For the remaining goods, ad valorem or specific duty rates may apply. An ad valorem rate is a percentage of the Customs value of the goods, whereas a specific rate is a specified amount per unit of weight or other quantity.

There are four broad categories of dutiable goods:

1. Intoxicating liquors

Beer including ale Customs duty - $16.00 per litre

of alcohol

Excise Duty - 48.00 per litre of alcohol

Sparkling wine Customs Duty- Nil

Excise Duty - $70.00 per litre of alcohol

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TAXES AND DUTIES


2.Tobacco products

Cigars cheroots & cigarillos containing tobacco

Customs Duty - Nil Excise Duty - $352.00 per kg

Other cigarettes containing tobacco

Customs Duty – Nil Excise Duty - 35.2 cents for every

gram or part thereof of each stick of cigarette

3. Motor vehicles

CKD mopeds & motorised bicycles reciprocating internal combustion

engine not over 50cc

Customs Duty - Nil Excise Duty 12%

CKD motor cars spark-ignition combustion reciprocating engine not over

1000cc excluding four wheel drive

Customs Duty – Nil Excise Duty 20%

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TAXES AND DUTIES


4. Petroleum products

Natural gas used as motor fuel

Customs Duty - Nil Excise Duty - 20 cents per kg

Motor spirit of RON under 90 leaded

Customs Duty – Nil Excise Duty - $6.30 per dal

Zero GST Warehouse Scheme

Scheme is applicable for companies who want to suspend GST on their non-

dutiable goods. There are three available licenses:

1. Warehouse Type I – at least 80% of the goods must be re-exported.

2. Warehouse Type II – no re-exportation requirements.

3. Warehouse Type III – no re-exportation requirements and can operate and

move goods freely between multiple ZG warehouse locations with a

single license.

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TAXES AND DUTIES


• When is Income tax applicable?

Singapore taxes on a territorial basis. A company is liable to pay tax on income accrued in or derived from Singapore or income received in Singapore from outside Singapore in respect of:

gains or profits from any trade or business income from investment such as dividends, interest and rental royalties, premiums and any other profits from property other gains of an income nature

• Other taxes and duties

Under Singapore's FTAs, imports of beer, stout, samsu and medicated samsu originating from the FTA partner countries into Singapore will be subjected to lower or zero customs duties.

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CUSTOMS REQUIREMENTS

All imports must be covered by the appropriate permit, and companies are required to make an inward declaration to the Controller of Imports & Exports for all imported goods.

All companies importing goods into Singapore require a Central Registration Number from the Trade Development Board.

Any GST and/or duties payable must be paid before clearance will be granted.

Singapore has 7 Free Trade Zones (FTZ) 6 for seaborne cargo and 1 for air cargo Facilities and services are provided for storage and re-export of dutiable

and controlled goods. Goods can be stored within the zones without any customs documentation until they are released in the market.

They can also be processed and re-exported with minimum customs formalities.


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CUSTOMS REQUIREMENTS

• Exceptions

Dutiable goods are allowed to be imported for repair without payment of duty on condition that they are re-exported within 3 months of the date of importation. If the goods are not re-exported the duty will become payable.

Bona fide trade samples may be imported without payment of duty.

Duty exemption and GST relief will be granted for wine used at wine exhibitions and conference events approved under the Meetings, Incentives, Conventions & Exhibitions (MICE) Incentive Scheme administered by the Singapore Tourism Board.


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PROHIBITED AND RESTRICTED GOODS


The import of some goods are subject to the control of Controlling Agencies, which may require approval or a license prior to the import of the goods.

Controlled goods (approval/licenses required or certain quotas may apply)e.g. animals, birds and products thereof; Cartridges/cassettes/audio compact diskettes-pre-recorded; Timber and wood (CITES listed); Telecommunication equipment; Publications.o Under the 2002 Consumer Protection Regulations, 45 categories of electrical,

electronic appliances and accessories have been mentioned as controlled goods and require a stamp of approval from Singapore government's standards and certification authority (SPRING Singapore).

Prohibited goods e.g. Chewing Gum (except medicinal); Rhinoceros horn;

pistol/revolver shaped cigarette lighters; firecrackers; Any arms or related material and any item, material, equipment, goods and technology related to nuclear programs, ballistic missile programs and other weapons of mass destruction programs from North Korea, Iran, Libya.

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QUARANTINE REQUIREMENTS


The Agri-Food & Veterinary Authority of Singapore “AVA” regulates the import of plants, insects, meat, fish, poultry, fruits and vegetables, eggs etc.

Certain products may only be imported from permitted countries, for e.g. raw or processed beef, mutton and poultry may be imported from Argentina but pork products are prohibited. No meat products may be imported from Israel.

Importation or transshipment of animal or bird parts or products are subject to following requirements:

Each consignment requires a permit from the Director General The consignment must have a certificate signed by a competent

veterinary authority attesting to the condition of the part/product The consignment may be subjected to inspection, sampling and testing

at the Director-General’s discretion

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LABELLING


Labels are required on imported food, drugs, liquor, paints and solvents and

must meet specific requirements, including displaying the country of origin.

For example, the Singapore Food Regulations require all pre-packed food

products for sale in Singapore to be labelled in English according to the

specified requirements. These include:

Name or description of food

Statement of ingredient

Declaration of foods and ingredients known to cause hypersensitivity

Declaration of net content in package

Name and address of the importer

Country of origin (Name of the city, town or province alone is not suitable)

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LABELLING

The “SAFETY Mark” is issued by the Singapore Productivity and Standards

Board.

All registered controlled goods must be individually marked with the

“SAFETY Mark” either on the product or packaging. The “SAFETY Mark”

helps consumers and traders to identify registered controlled goods.

The “SAFETY Mark” comprises a logo enclosed in a square on the left

and the words "SAFETY MARK" within a rectangle on the right. A unique

8-digit registration number traceable to the registrant and the registered

models must be displayed under the logo.


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ASSISTANCE FOR IMPORTERS


TradeXchange

A platform that facilitates the exchange of information within the trade and logistics community.

Provides inter-connectivity among commercial and regulatory systems.

A single electronic window for integrated workflow, submissions and enquiries to the Sea Ports, Airports, Maritime Authorities, Customs and Controlling Agencies.

TradeNet

A nationwide Electronic Data Interchange System which allows parties to exchange trade information electronically, facilitating connectivity among the trading community.

Singapore Customs and various other agencies use this System.

Local Consulates , Chamber of Commerce and Trade Commissioners

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WHERE TO FIND MORE INFORMATION


http://www.customs.gov.sg/ https://www.tradexchange.gov.sg/ https://www.tradenet.gov.sg/ http://www.iras.gov.sg/ http://www.ica.gov.sg/ http://www.ava.gov.sg/ http://www.spring.gov.sg/

https://www.tradexchange.gov.sg/





https://www.tradenet.gov.sg/



http://www.iras.gov.sg/



http://www.ica.gov.sg/

http://www.ica.gov.sg/

http://www.ava.gov.sg/

http://www.ava.gov.sg/

http://www.spring.gov.sg/

http://www.spring.gov.sg/

Guangzhou Shanghai Singapore www.hjmasialaw.comApril 12, 2023

Question and Answers Session-------

Thanks for your attention

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HJM Asia Law & Co LLC

Caroline Berube

49, Kim Yam RoadSingapore

239353

Tel: +65 6755 9019 ext. 11Fax: +65 6755 9017Cell: +65 9800 9522

[email protected]


mailto:[email protected]

http://www.hjmasialaw.com/

agap conference 2012 importing goods into singapore - caroline berube, hjm asia law llc

Education

singapore customs

applicable customs duty

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customs duties

alecustoms duty

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imported goods