singapore customs we make trade easy, fair and secure 1 introduction to singapore customs presented...

Singapore CustomsSingapore CustomsWe Make Trade Easy, Fair and SecureWe Make Trade Easy, Fair and Secure 1

Introduction to Singapore Customs

Presented by: Loh Fook Meng

ADG (Compliance)


• Singapore Customs – About Us• Our Organisation• Our Vision, Mission, Motto (VMM) and

Values• Our Roles and Functions• Our Customers and Partners• Our Challenges Ahead

Outline


What is Customs?What is Customs? According to World Customs Organisation Glossary of

Terms:

“The Government Service which is responsible for the administration of Customs law and the collection of import and export duties and taxes and which also

has responsibility for the application of other laws and regulations relating, inter alia, to the importation,

transit and exportation of goods.”

• In Singapore, Singapore Customs (SC) is separated from the Immigration & Checkpoints Authority (ICA)


Our Organisation


Re-constitution in April 2003

Singapore Customs (MOF)

Revenue Collection Customs Documentation Customs Enforcement Tax Suspension Schemes Strategic Goods

Immigration & Checkpoints Authority (MHA)

Immigration Registration

Checkpoint Clearance Travellers, Baggage Cargo, Vehicles

Customs & Excise Department (MOF)

Singapore Immigration and

Registration (MHA)

Trade Facilitation Div & Statistics Audit Unit of IE Singapore (MTI)

Trade Facilitation Trade Documentation Rules of Origin

Head Internal AuditMr Chua Liang Huat

DIRECTOR-GENERAL OF SINGAPORE CUSTOMSMr Fong Yong Kian

ASSISTANTDIRECTOR-GENERAL (POLICY & PLANNING)

Mr Lee Tiow Yong

ASSISTANT DIRECTOR-GENERAL

(INTELLIGENCE & INVESTIGATION)

Mr Lee Boon Chong


(CORPORATE DEVELOPMENT)

Mrs Lam Meng Choo


(COMPLIANCE)Mr Loh Fook Meng

SENIOR ASSISTANT DIRECTOR-GENERAL

(TRADE) Mr Lim Teck Leong

ASSISTANT DIRECTOR-GENERAL (TRADE)

Ms Teo Siew Lan

ASSISTANTDIRECTOR-GENERAL

(CHECKPOINT & CORPORATE SERVICES)

Mr Mok Hei Chee

Head Operations Management 1

Mr Aaron Cheong Loong Wei

Head Operations Management 2

Mr Long Foo Liew

Head IntelligenceMr Samuel Ong Guan

Kun

Head Operations Policy & Development

Ms Ivy Chong

Head Special Investigation

Mr Yeo Sew Meng

Head Suppression & Community Engagement

Mr Wan Boon Oon

Head ProsecutionMr S Krishnan

Head Corporate AdministrationMr K Chandran

Head Checkpoint Services & InvestigationMs Joyce Lim Siok Keow

Head Corporate Information Technology

Ms Yeo Beng Huay

Head PlanningMs Tan Bee LanHead Strategy

Mr Alvin Neo Yeow Leong

Head International Relations

Ms Sung Pik Wan

Head Policy & ResearchMs Ooi Chia Miin

Head Corporate Communications

Mr Victor Seah Teck Siong

Head Competency Development

Ms Sumathi d/o Govindarajan

Head Human ResourceMs Shamala Dhevi

Head FinanceMr Vincent Leong

Head Trade Investigation

Ms Eo Boon Kian

Head Permits Compliance

Mr Peter Cheah Hock Lye

Head Company Compliance

Mr Ho Ann Chuan

Head Risk Assessment

Mr Goh Yeow Meng

Acting Head Client Relations

Ms Patricia Poh Pei Pei

Head Procedures & Systems

Mr Winston Tay Wee Hua

Head Schemes & Licensing

Mr Teh Thiam Siong

Head Trade StrategyMs Fauziah Abdul SaniHead Trade Security

Ms Karen Lim Shu Wen

Head Tariffs & Trade Services

Mr David Foo Ching Yenn

SINGAPORE CUSTOMSORGANISATION CHART FROM 2 AUGUST 2010


Our Staff ProfileTotal Staff Strength (as of 31 July 2010): 796

Schemes of Service Level of Qualification


Our Parent Ministry

Departments Statutory Boards


Chemical Weapons

(Prohibition) Act

Legislations We Administer

Owned by MOF

Owned by MTI

Owned by MFA

Strategic Goods

(Control) Act

Regulation of Imports & Exports Act

Customs Act

GST Act

Free Trade Zones Act


Our Operating Locations

Customs Corporate HQ is located at Revenue House.

Customs Officers are also deployed at the following places: • Customs Operations Command (COC)• Changi Airport Terminal 1 • Changi Airport Terminal 2 • Changi Airport Terminal 3 • Budget Terminal • Singapore Cruise Centre • Tanah Merah Ferry Terminal • Tuas Checkpoint • Woodlands Checkpoint

11

Examples of Operating Locations

Customs Operations Command

Changi Airport T3

T3 GST Refund (Landside)

T3 Customs Duty Office

Woodlands Checkpoint

Tanah Merah Ferry TerminalRevenue House


Our Vision, Mission, Motto

(VMM)


Our Vision, Mission and Motto (VMM)

MottoWe make trade easy,

fair and secure

VISIONA leading Customs that advances Singapore’s economy by assuring

the integrity of the trading system

As the guardian of Singapore’s trade, we

uphold our laws to build trust to facilitate trade and

protect revenue

MISSION


Our ValuesIntegrityCarrying out operations in an impartial and fair manner.

Making fair and honest decisions.

Upholding honesty and fairness in actions even when it is inconvenient to do so.

TeamworkPutting aside personal differences to achieve the organisation’s goals.

Sharing knowledge to enhance the work of other officers or branches.

Using one’s capabilities or knowledge to help the team to achieve its goal.

CommitmentTaking the initiative to go the extra mile for customers and colleagues.Putting the organisation’s interests or needs above self.Going beyond job scope to ensure issues are resolved.Dedication to seeing a task to the end. CourageAdmitting mistakes readily and taking steps to remedy the situation.

Daring to raise controversial ideas so long as they are for the organisation’s good.

ResponsivenessAnticipating changes and picking up trends, opportunities, risks and threats quickly.

Addressing issues proactively, i.e. not waiting for someone else to take action.Acting promptly on enquiries and requests from both internal and external customers.


Our Roles and Functions

Our Roles

Trade Checkpoint Services

Compliance

Intelligence & Investigation

Policy & PlanningCorporate Development

Corporate Services

Our Roles


5 Branches • Procedures & Systems Branch

• Tariffs & Trade Services Branch

• Schemes & Licensing Branch

• Client Relations Branch

• Trade Strategy and Security Branch

Trade Division


Single Window for Trade

• TradeNet® - World’s 1st single-window electronic platform for trade declaration.

• Made its debut in 1989 as the world’s first nationwide electronic data interchange system for clearance of trade documentation. The last major system upgrade was conducted in October 2007 (Version 4).

TradeNet®

• Handling the administration of TradeNet® System, including managing vendors and Controlling Agencies



TradeNet®

TradersAir Cargo Agents

Shipping Agents

Freight Forwarders

S’pore Customs CA1 CA2 CA3 CA4 CA5

To this

S’pore Customs

CA1 CA3 CA4

CA5

TradersAir Cargo Agents

Shipping Agents

Freight Forwarders

From this

Singapore CustomsSingapore CustomsWe Make Trade Easy, Fair and SecureWe Make Trade Easy, Fair and Secure


34 Controlling 34 Controlling

UnitsUnits

Agri-food & Veterinary Authority

International Enterprise Singapore

Board

National Environmental

Agency

Central Narcotics Bureau

Media Development

Authority

InfoComm Development Authority of Singapore

Singapore Customs [incl National

Authority (CWC)]

Health Sciences Authority

Singapore Police Force

Ministry of Manpower

Singapore Civil

Defence Force

Ministry of Health


Single Window for TradeAgri-food &

Veterinary Authority

International Enterprise Singapore

Board

National Environmental

Agency

Central Narcotics Bureau

Media Development

Authority

InfoComm Development Authority of Singapore

Singapore Customs [incl National

Authority (CWC)]

Health Sciences Authority

Singapore Police Force

Ministry of Manpower

Singapore Civil

Defence Force

Ministry of Health

Single formSingle form

Single submissionSingle submission

Single interfaceSingle interface

Single processSingle process



Automatic bank account deduction

By cheque and cash8. Customs duties collection

Same electronic doc routed to controlling agencies for processing

Separate documents sent to different controlling agencies for processing

7. Controlled goods handling

Same electronic document routed to customs for processing

Separate documents for customs processing

6. Dutiable goods handling

Within 10 minsFrom 4hrs to 2-7 days5. Turnaround time for approval

Single copyMultiple copies4. Copies of document

NO trips requiredAt least 2 trips or more3. Trips per controlling agency per document

Available 24 hrsWithin office hours2. Time of submission

Electronically from comforts of office (or home)

Via expensive dispatch clerks/ couriers

1. Submission of document

TradeNet® BenefitPrevious Manual processCharacteristics

Source: APEC Economies: Breaking down the barriers, Shanghai 2001 (modified)

9. Trade Documentation Fee

S$10 per document S$2.88 per application



Current Volume & Performance• More than 8,000 users from 2,600 subscribers

• About 30,000 declarations per day

• More than 9 million declarations annually

• Collected over S$7b duties and GST in FY2009

• 100% of customs declarations processed and approved via TradeNet®

• 100% of the collections are made electronically through Inter-Bank GIRO

• 90% of permits processed within 10 minutes


Single Window for TradeA multi-agency initiative led by SC, IDA and EDB.

• A neutral and secure platform that facilitates the exchange of information within the trade and logistics community, and with the government

Legend:

JP – Jurong Port

TX - TradeXchange®

VAS – Value added Service Providers


Helping Our Exporters Grow

• Leads ASEAN customs authorities to develop the ASEAN Harmonised Tariff Nomenclature (AHTN)

• The AHTN is a major step in facilitating trade among ASEAN countries while forging closer economic cooperation

• Determining Rules of Origin (ROO) for preferential treatment & providing advice on valuation and classification of goods


Free Trade Agreements (FTA) • SC supports in negotiating the Customs Chapter of

the various FTAs.

• SC also supports MTI in the rules of origin negotiations.

• These work are done to help improve the market access of our exporters.

• We have currently 20 FTAs in force.

• We collaborate closely with IE Singapore to conduct outreach to exporters to fully benefit from FTAs.

• In 2009, companies based in Singapore have enjoyed more than S$700 million in tariff savings.


Customs Trade Facilitation Schemes

Licensed Warehouse

Zero GST Warehouse

Temporary Import

Air Store BondExcise Factory Apex Licence

Container Freight

Warehouse Scheme

Industrial Exemption

Factory Scheme

Duty-Free Shop

• Promoting and administering customs schemes

http://www.customs.gov.sg/leftNav/trad/cus/Licensed+Warehouse+Scheme.htm

http://www.customs.gov.sg/leftNav/trad/cus/Licensed+Warehouse+Scheme.htm

http://www.customs.gov.sg/leftNav/trad/cus/Zero+GST+Warehouse+Scheme.htm

http://www.customs.gov.sg/leftNav/trad/cus/Zero+GST+Warehouse+Scheme.htm

http://www.customs.gov.sg/leftNav/trad/cus/Temporary+Import+Scheme.htm

http://www.customs.gov.sg/leftNav/trad/cus/Temporary+Import+Scheme.htm

http://www.customs.gov.sg/leftNav/trad/cus/Air+Store+Bond+Scheme.htm


Delivering Schemes that Work

• Suspending GST - Zero GST Warehouse Scheme

• Developing Niche Industries – Temporary Import Scheme

• From “Multiple Licences to One” – Apex Licence

Business Times, 19 August 2008


Securing Supply Chains

• Complex nature of today’s trade system means that all components of system are dependent upon one another for safe and secure trade.

• The WCO SAFE Framework of Standards secures the movement of global trade in a way that facilitates the movement of that trade.



Singapore Customs Director-General Mr Fong Yong Kian signing Mutual Recognition Arrangements with Canada Border Services Agency and Korea Customs Service at the WCO Council Sessions in June 2010

• National Authority for Secure Trade Partnership (STP) programme

• STP provides companies with a framework to guide development, implementation, monitoring and review of company's supply chain security measures

• Benefits include enhanced visibility, better branding, less inspection, expedited clearance (under Mutual Recognition Arrangements)



• Endorsed by APEC leaders in Sydney in 2007, APEC Trade Recovery Programme (TRP) establishes principles for ensuring swift trade restoration among APEC economies in the immediate aftermath of a terrorist attack on the global supply chain

• Fast trade recovery is of paramount importance to international trade

APEC Trade Recovery Programme


Export Control

• Security and Peace – Preconditions for trade to flourish

• Prevent proliferation of Weapon of Mass Destruction (WMD)

• Strategic Goods (Control) Act regulates trade and transfer in sensitive goods and technology

• Adopted Full Lists of the 4 Informal Export Control Regimes

• Control with Facilitation – Strategic Trade Scheme

• National Authority for Chemical Weapons Convention (NA, CWC)

Exercising control over trade in strategic goods

The 4 Informal Export Control

Regimes

Missile Technology Control Regime

(MTCR)

The Australia Group

(AG)

Wassenaar Arrangement

(WA)

Nuclear Suppliers

Group

(NSG)

35


Compliance



Corporate Services

Our Roles


4 Branches • Permits Compliance Branch

• Company Compliance Branch

• Trade Investigation Branch

• Risk Assessment Branch

Compliance Division


Compliance Framework

(1) Timely Detection of Violations through Risk Management Techniques

(2) Deterrence through Effective Enforcement and Penalties

(3) Education through Outreach

(4) Monitoring Compliance Status

CustomsComplianceFramework


• Conducting compliance checks on trade documents

• Conducting informed audits on companies customs requirements, and conducing stuffing and unstuffing functions

• Conducting investigations into revenue fraud

• Assessing the risk level of SC's external business processes and monitoring and targeting of companies for revenue evasion

• Setting incentives and penalties to promote voluntary compliance

• Conducting outreach and education to enhance compliance capability of trading community

Key Roles of Compliance Division


Compliance Efforts• In the last 2 years, there has been an increase in the

number of parallel importers (PI) and growing market share of Motor Vehicle imports by PI.

2004 2007 2008

No. of Parallel Importers

66 142 187

% of Total MV Imports by Parallel Importers

4% 20% 24%

• Suspected cases investigated and errant traders prosecuted in court.

• Message sent to parallel importers that fraud will not be tolerated.


Straits Times – 16 Jan 2009 Case 1

Errant Traders - Parallel Import of Motor Vehicles


Case 2



Case 3



6 Branches • Operations Policy and Development Branch

• Operations Management Branch

• Intelligence Branch

• Special Investigation Branch

• Suppression & Community Engagement Branch

• Prosecution Branch

Intelligence & Investigation Division


• Providing intelligence support • Undertaking functions on strategic and policy issues as well as the

development of its computer application systems • Focusing on improvements to the investigation and enforcement

operations by identifying systemic lapses and recommend corrective actions and guidance

• Coordinating interdiction of IPR infringing goods at the borders• Conducting surveillance and investigations to suppress duty

evasion and syndicate smuggling

Key Roles Of Intelligence & Investigation Division


• Conducting analysis to identify companies suspected of commercial fraud

• Conducting risk review and working with stakeholder branches to formulate strategies and implement control measures on risk elements identified

• Handling prosecution cases and providing legal advice on arrest and Customs cases.

• Driving community engagement to heighten public education and maintain public confidence in the enforcement of customs laws.

Key Roles Of Intelligence & Investigation Division


Marlboro retail price/pack (S$)

Contraband Cigarettes EnforcementIncentive to smuggle due to high duty rate on cigarettes and huge price difference compared to neighbouring countries

2.70

1.78

1.331.27

3.51

11.60

1.58

3.10

0.92

Source: Philips Morris as @ July 2008


Multi-pronged strategies to tackle demand and supply side of problem:• Closing regulatory gaps to prevent abuse of customs

procedure for smuggling• Risk profiling to interdict smuggling via commercial

consignments• Increased quantum of composition sums and having

tougher prosecution guidelines• Increased resources to combat smuggling, including

engaging CISCO and leveraging on other enforcement agencies

• Enhanced technological support for enforcement operations

• Publicity campaign against contraband cigarettes• New marking requirement on individual sticks of

cigarettes

Contraband Cigarettes Enforcement


Case 1



Case 2



Collaboration with Other Agencies

• ICA detects smuggling through checkpoints• Joint operations and intelligence sharing with

other enforcement agencies• Coordinate with MOM, ICA and MOE on

foreign offenders• Coordinate with NEA, MEWR and ICA on illicit

shipments of Environmentally Hazardous Goods


3 Branches • Checkpoint Services & Investigation Branch

• Corporate Information Technology Branch

• Corporate Administration Branch

Checkpoint & Corporate Services Division


• Providing essential customs services at the major checkpoints

• Planning and providing IT services to meet the needs of the department and create greater value in customs service delivery

• Providing the functions of office administration, facilities management and security

Key Roles Of Checkpoint & Corporate Service Division


Efficient and Customer-centric Checkpoint Services

• Collection of duty and GST payment from travellers.

• Facilitating tourist GST refund of over $125 million in 2009.

• Providing essential customs services at the major checkpoints


Compliance



Corporate Services

Our Roles


3 Branches • Policy & Research Branch

• Planning Branch

• International Relations Branch

Policy & Planning Division


• Driving SC's strategic and corporate planning processes and plans, and policy formulation

• Conducting policy reviews

• Promoting technical cooperation to further national interests

• Participating in international/regional customs meetings and Free Trade Agreement negotiations

Key Roles Of Policy & Planning Division


Contributions to International Trade and Customs Community

• Chair of APEC 09 Sub-Committee on Customs Procedures (SCCP)

• Chair of WCO and APEC Special Group on drafting of Trade Recovery annex to the SAFE Framework of Standards

• Chair of ASEAN Customs Procedures and Trade Facilitation Working Group (CPTFWG)


4 Branches Communications Branch

Finance Branch

Human Resource Branch Corporate

Competency Development Branch

Corporate Development Division


• Managing SC’s corporate reputation and facilitating internal and external stakeholder communications.

• Managing SC’s monetary resources and providing full range of financial management services

• Attracting and retaining the best talent for SC through implementation of effective HR practices

• Strengthening SC staff competencies through various competency-based specialised training

Key Roles of Corporate Development Division


Internal Audit Branch

• Evaluating the adequacy and effectiveness of internal controls and ascertain whether policies and guidelines are complied with.

Internal Audit Branch


To summarise our roles and functions….


Summary

• Trade Facilitation and Trade Enforcement are two sides of the same coin.

• Risk management plays an important role in every facet of customs work.

• Concept of traffic controls at the highways.


Our Customers and Partners


Our Customers

Our CustomersOur Customers

TravellingTravellingCommunityCommunity

Trading Trading CommunityCommunity

DepartingTravellers

ArrivingTravellers

FreightForwarders

Importers/Exporters

Manufacturers Licensees

• Approx 90,000 entities registered with SC to engage in import/export activities.


Customer Engagement • 24X7 Call Centre (outsourced to CrimsonLogic)• Regular dialogue sessions with traders• Account Managers for traders under various

schemes/programmes• Key Customers Programme• Strategically engage and enhance service experience of key

customers through assignment of relationship managers• Training the Trading Community:

- Customs Competency Programme for Businesses (CCPFB) and Strategic Goods Control Programme for Businesses (SGCPFB)


Our Partners

PartnersPartners


Importance of Fostering Partnerships

• Greater rapport and understanding of each other’s needs and challenges.

• Leveraging on each others’ resources and expertise.

• Sharing timely and reliable intelligence and information.

• Streamlining existing and/or future working procedures.

• Gathering innovative ideas and new growth opportunities for the future.


Our Challenges Ahead


Singapore’s Success: A World-Class Global Trade Hub

• In 2009, Singapore total trade volume reached $747 billion.

• Ranked 1st in Ease of Doing Business and Trading Across Borders by The World Bank Report 2010.

• Overall, Singapore Customs contributes to Singapore’s trade growth.

• Singapore lives by international trade since its founding in 1819. • Trade has been and will continue to be a key pillar in Singapore’s

economy.


Our Challenges

• International trading environment has become more complex.

• Security is a world-wide concern.

A Fast-Changing Landscape


Our Challenges• Maintaining Singapore’s international competitiveness.• Striking a good balance between being business-friendly and

maintaining trust and integrity of our trading system.• Collaborating with other countries to enhance trade security,

e.g. through more mutual recognition arrangements to facilitate Singapore’s exports.


Thank you

singapore customs we make trade easy, fair and secure 1 introduction to singapore customs presented...

Documents

trade easy

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leading customs

customs officers

administration of customs

guardian of singapores

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