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


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

  1. 1. Importing Goods into Singapore Alliott Asia Pacific Conference – Bali 2012 Caroline Berube Managing Partner 1Guangzhou Shanghai Singapore
  2. 2. SINGAPORE Quick Stats • Singapore is a regional trading hub and the Port of Singapore is amongst the worlds 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 2007 2008 2009 2010 2011 Indicators Imports of 263,155 319,780 245,785 310,791 365,771 Goods (million USD) Exports of Goods (million 299,308 338,176 269,833 351,867 409,504 USD) Imports of 74,405 87,202 79,117 96,255 110,491 Services (million USD) Exports of 84,824 99,002 93,245 112,061 125,068 Services (million USD) 2Guangzhou Shanghai Singapore
  3. 3. 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”). 3Guangzhou Shanghai Singapore
  4. 4. 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%. 4Guangzhou Shanghai Singapore
  5. 5. 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 5Guangzhou Shanghai Singapore
  6. 6. 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% 6Guangzhou Shanghai Singapore
  7. 7. 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. 7Guangzhou Shanghai Singapore
  8. 8. 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 Singapores 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. 8Guangzhou Shanghai Singapore
  9. 9. 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. 9Guangzhou Shanghai Singapore
  10. 10. 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. 10Guangzhou Shanghai Singapore
  11. 11. 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 governments 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. 11Guangzhou Shanghai Singapore
  12. 12. 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 12Guangzhou Shanghai Singapore
  13. 13. 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) 13Guangzhou Shanghai Singapore
  14. 14. 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. 14Guangzhou Shanghai Singapore
  15. 15. 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 15Guangzhou Shanghai Singapore
  16. 16. WHERE TO FIND MORE INFORMATION        16Guangzhou Shanghai Singapore
  17. 17. Question and Answers Session ------- Thanks for your attention June 25, 2012Guangzhou Shanghai Singapore
  18. 18. HJM Asia Law & Co LLC Caroline Berube 49, Kim Yam Road Singapore 239353 Tel: +65 6755 9019 ext. 11 Fax: +65 6755 9017 Cell: +65 9800 9522 18Guangzhou Shanghai Singapore