A Comprehensive Guide To Import And Export In Singapore
Introduction
Singapore, strategically located at the southern tip of the Malay Peninsula, is a crucial hub for global trade, sitting between the Indian Ocean and South China Sea. Despite being a small city-state with limited natural resources, it has leveraged its prime geographical position and world-class port facilities to become one of the leading maritime centers globally. With a highly productive workforce and a focus on maritime services, Singapore has transformed into a key node in Southeast Asian sea routes, serving as both the primary loading and unloading point for major shipping lines, including those to North America and Europe.
It is imperative for Australian businesses and individuals to understand the relevant rules and regulations, whether they tap on Singapore’s thriving cosmopolitan market directly or as a transshipment hub. This article seeks to serve as a comprehensive guide to import and export in Singapore.
NOTE: The dynamic landscape of international trade means that certain new regulations may render certain portions of the following guide obsolete. Hence, we advise interested entities to engage freight forwarding companies (like Arc Freights), leveraging on our expertise to enjoy seamless one-stop service.
Preparatory Work
Import & Export Procedures in Singapore
In order to engage in import and/or export activities in Singapore, businesses and individuals will need to:
- Obtain a Unique Entity Number (UEN) by registering with the
- Singapore Accounting and Corporate Regulatory Authority (ACRA) OR
- relevant UEN Issuance Agency
- Activate their Customs Account
After activating your Customs Account, you may appoint a Declaring Agent to apply for customs permits via TradeNet on your behalf. This permit allows the holder to import, export, or transship goods within or via Singapore.
NOTE: All payment of duties, taxes, fees, penalties and other charges on services offered by Singapore are to be conducted through maintaining an Inter-Bank GIRO (IBG) with Singapore Customs. The IBG application usually requires 3 to 4 weeks for the bank’s approval.
Prohibited Goods in Singapore
After classifying the goods, businesses and individuals need to check if said goods are controlled or prohibited for import, export, or transshipment. A non-exhaustive list of the prohibited/controlled imports is provided below:
- Singapore Customs
- Chewing gum (excluding Health Sciences Authority approved oral dental and medicinal chewing gum)
- National Parks Board
- Rhinoceros horn (worked, unworked or prepared and the any part, power or waste of such horn)
- Endangered species of wildlife and products derived from the body of such animals
- Info-communications Media Development Authority (IMDA) of Singapore
- Telecommunication equipment
- Scanning receivers
- Military communication equipment
- Telephone voice changing equipment
- Radio-communication equipment operating in frequency bands 880-915 MHz, 925-960 MHz, 1900-1980 MHz and 2110-2170 MHz except cellular mobile phones or such other equipment approved by IMDA Singapore
- Radio-communication jamming devices operating in any frequency band
- Obscene articles, publications and video tapes or discs
- Seditious and treasonable materials
- Health Sciences Authority
- Tobacco Regulation Branch
- Chewing tobacco (loose leaf chewing tobacco, plug chewing tobacco, twist chewing tobacco, tobacco bits intended for chewing
- Imitation tobacco products (electronic cigarettes, vaporisers) and components of imitation tobacco products
- Shisha
- Smokeless cigars, smokeless cigarillos or smokeless cigarettes
- Dissolvable tobacco or nicotine
- Any product containing nicotine or tobacco that may be used topically for application, by implant or injected into any parts of the body
- Any solution or substance, of which tobacco or nicotine is a constituent, that is intended to be used with an electronic nicotine delivery system or vaporizers
- Nasal snuff
- Oral snuff
- Gutkha, khaini and zarda
- Health Products Regulation Group
- Controlled drugs listed under 4th Schedule of Misuse of Drugs Regulation
- Tobacco Regulation Branch
- Telecommunication equipment
NOTE: Businesses and Individuals may refer to the Harmonized System (HS) Code Search Engine for more information. For controlled goods, one will need to check the licensing requirements for your goods with the name and Contact Person of the respective Competent Authorities indicated in the search results.
Choosing The Right Freight Forwarder
As your goods navigate the complex landscape of international trade, a reliable freight forwarder can be the linchpin between seamless logistics and costly delays. With numerous players in the market, selecting the right partner is crucial to ensure your imports and exports move efficiently through Singapore’s world-class ports and airports.
In addition to crafting the most optimal logistics solution, freight forwarders can also aid businesses and individuals in handling every aspect of door-to-door sea freight, air freight and more:
- First-Mile Delivery: The transfer of goods from the merchant’s warehouse to the airport or port.
- Export Customs Clearance
- International Freight
- Air Freight
- Sea Freight
- Import Customs Clearance
- Last-Mile Delivery
Methods of Shipping to Singapore
Connecting the world to one of Asia’s busiest trade hubs requires a deep understanding of the various shipping methods available. Whether you’re importing goods into Singapore or transshipping via it to ASEAN and/or global markets, the choice of shipping mode can significantly impact your bottom line, delivery timelines, and overall customer satisfaction.
Sea Freight
Singapore’s strategic sea freight advantages are rooted in its geographic position along the East-West trade route and its proximity to densely populated markets like China and India. Having retained its spot as a world-leading maritime hub, Singapore’s ports serve as a crucial node for shipping and commercial management.
Air Freight
As a transit point, Singapore has advantages over other neighboring countries in terms of air freight supply chain connectivity. Changi Airport’s Pharma@Changi program provides complete cold chain support and has become the preferred air cargo hub for the consolidation and distribution of pharmaceuticals in the Asia-Pacific region; it is also home to the first Lufthansa Innovation Center outside Germany.
Customs Procedures in Singapore
Understanding and preparing the necessary documentation is critical to ensuring a smooth and efficient process. Singapore has strict customs regulations and compliance with these requirements is critical to avoid delays and issues.
Necessary Documents for Customs Clearance
Businesses and individuals are generally required to retain the relevant supporting documents relating to the purchase, import, sale or export of the goods for a period of 5 years from the date of the permit application approval. These documents can be stored as physical hardcopies or as images. You are required to produce these supporting documents to Singapore Customs upon request:
- Commercial Invoice
- Books of Accounts
- Bill of lading
- Packing List
- Certificate of Origin
- Certificate of Analysis
- Certificate of Insurance
- Any document or record on the terms of trade relating to the purchase, import, sale or export of the goods by the importer/exporter/agent
- Other relevant documents or records
Import and Export Tax
There are three types of import duties and taxes – GST, customs duty and excise duty. You will first need to determine if tax or duty payments are required for your goods. Dutiable goods, which incur both, are:
- Intoxicating liquors
- For alcoholic products with duty rates based on per litre of alcohol
- Duties payable = Total quantity in litres x Customs and/or excise duty rate x Percentage of alcoholic strength
- For alcoholic products with duty rates based on dutiable content (weight/volume)
- Duties payable = Total dutiable quantity in kilogrammes x Customs duty rate
- Tobacco products
- All tobacco products except cigarettes
- Duties payable = Total weight (in kilogrammes) x Excise duty rate
- Cigarettes
- Duties payable = Total number of sticks x Weight of individual sticks (every gramme or part thereof) x Excise duty rate
- Motor vehicles
- Duties payable = Customs value x Excise duty rate
- Petroleum products
- Petroleum products
- Duties payable = Total volume x Excise duty rate
- Compressed natural gas (Cng)
- Duties payable = Total weight x Excise duty rate
- Biodiesel blend
- Duties payable = Volume of diesel x Excise duty rate
- Petroleum products
- All tobacco products except cigarettes
- For alcoholic products with duty rates based on per litre of alcohol
All other goods, such as approved fruits and vegetables, finished consumer products or electronics, incur GST only. As an importer, it is important to identify which category your goods fall under when it comes to shipping into Singapore.
Goods and Services Tax (GST)
All goods imported into Singapore are subject to Goods and Services Tax (GST) at the prevailing rate. It is calculated based on:
- Customs value of the goods, plus all duties, or
- Value of the last selling price (LSP) plus all duties, if there has been more than one sale (when the last buyer is the party declaring the payment permit)
- Non-Dutiable Goods
- GST payable = prevailing GST rate (currently 9%) x Customs value or LSP
- Dutiable Goods
- GST payable = prevailing GST rate (currently 9%) x (Customs value or LSP + duties payable)
Optimise Your Shipping Experience
Navigating the complexities of importing and exporting through Singapore can be challenging, especially with ever-evolving regulations and logistics demands. To ensure a smooth and efficient experience, partnering with a reliable freight forwarder can significantly streamline your operations, minimize delays, and enhance your overall shipping experience. With expert guidance and support, businesses can stay on top of their shipments, from documentation to customs clearance and delivery. If you’re looking for a trusted partner to manage your international logistics needs, don’t hesitate to inquire about our comprehensive freight forwarding services.
Arc Freights is Australia’s leading Freight Forwarder offering QUALITY & RELIABLE logistics services in more than 140 countries. Having plied our expertise in ASEAN for nearly two decades, we are the trusted partner for logistics between Australia and Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. With expert knowledge, advanced technology, and a commitment to reliability, we provide seamless logistics management that helps you focus on what matters most—growing your business.
