Introductions

In line with Singapore’s business-friendly environment, the country’s import and export procedures are relatively efficient and simple, and the necessary permits and licenses are issued relatively quickly.

Singapore is one of Asia’s largest trading hubs and has successfully established important alliances that ply the main shipping route from Asia to Europe in addition to establishing strong feeder networks with smaller regional ports.  The Port of Singapore handles over 37.2 million twenty-foot equivalent units (TEUs) of containers and 626.2 million tons of cargo annually, making it one of the world’s busiest.

Moreover, prior to the pandemic, Singapore’s Changi International Airport was the seventh busiest airport for international traffic, handling over seven thousand flights weekly, and over two million tons of cargo.

Guide How to Import to Singapore

As an importer, the company will need to determine if duty or Goods and Sales Tax (GST) payments are required on the products they are importing. Importers should note that:

• Duty and/or GST are suspended when goods remain inside free trade zones (FTZ);
• Duty and/or GST are payable if goods are released directly for local circulation;
• When goods are moved from an FTZ into customs licensed premises (such as zero-GST warehouses or licensed warehouses), duty and/or GST will be suspended as long as the goods are stored in the licensed premises; and
• Duty and/or GST is not payable for goods granted GST relief or those imported under the Temporary Import Scheme under
  
  Singapore Customs. This also includes Inland Revenue Authority of Singapore (IRAS) schemes:
• The Major Exporter Scheme (MES);
• Approved Import GST Suspension Scheme (AISS); and
• The Import GST Deferment Scheme (IGDS).

Regulation of Import to Singapore

All goods imported into Singapore are regulated under the Customs Act, the Goods and Services Tax (GST) Act and the Regulation of Imports and Exports Act.

Import Procedures

Imported goods are subject to GST and/or duty payment. A customs permit is required to account for the import and tax payment of the goods. Dutiable goods, which incur both GST and duty, are:

• Intoxicating liquors
• Tobacco products
• Motor vehicles
• Petroleum products

Ad valorem or specific duty rates may be applied for dutiable goods.

All other goods are non-dutiable and incur GST only. Prevailing GST rate is levied on the CIF (cost, insurance and freight) value, which includes duties (if it is a dutiable good) and other charges, costs and expenses incidental to the sale and delivery of the goods into Singapore, whether or not shown on the invoice.

Import Requirements

Before the actual importation, the importer is required to obtain a customs permit. The importer is the party who imports the goods into Singapore:

• For their own account or use; or
• For the account or use of some other person

If an overseas company sold goods to a local company and the commercial invoice indicates the local customer as the consignee, the local customer will be the importer of the goods.

Challenges When Import to Singapore

Singapore is a free port and more than 99% of all imports enter Singapore duty-free.  For social and/or environmental reasons, it levies high excise taxes on distilled spirits and wine, tobacco products, motor vehicles, and gasoline.  Competition with global suppliers is a key challenge for American companies operating in Singapore.  As the nation continues to restructure its economy, U.S. companies doing business in the city-state can expect increased operating costs and a more limited availability of foreign labor resulting from increasing inflation. 

U.S. companies face technical import barriers for meat, seafood, and poultry products, and labeling barriers for pre-packaged, non-alcoholic beverages.  Services barriers include restrictions on the use of satellite dishes, direct-to-home satellite TV services, paid television subscriptions, and legal, banking, and healthcare services.  Despite Singapore’s overall strong record on intellectual property (IP) protection and enforcement, U.S. stakeholders continue to raise concerns regarding weak enforcement against infringing goods transshipped through Singapore and the use of unauthorized streaming services and third-party illicit streaming devices to access pirated content.  Details on these trade barriers can be found in the USTR National Trade Estimate Report.

Singapore continues to face challenges associated with demographic and geopolitical issues such as an aging workforce, maturing economy, growing influence of social media, and increasing competition from other trade agreements.  Singapore relies heavily on foreign workers, who make up 40 percent of the workforce.  Additionally, the surge in commodity prices generated by Russia’s war in Ukraine continues to take a heavy economic toll on Singapore.

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