In Singapore, the transaction value methods is considered in establishing the customs value, which is the Cost, Insurance, and Freight (CIF) value under International Commercial Terms (incoterms). The primary basis for customs value is the transaction value of the imported goods when sold for export to Singapore. All other charges incidental to the sale and delivery of the imports mut be added to the transaction value or the price paid or payable for the imports. If any component of the customs value is settled in foreign currency, that value will need to be converted to Singapore Dollars using the current selling rate of that currency in Singapore, at the time when customs duty or excise duty is paid for the imports.
Exporters are required to ensure that the declared values of goods have not been undervalued or the Customs and Excise Department will increase the values declared. Severe penalties may be imposed on traders attempting to evade duty.
Free Trade Zones / Warehouses
Singapore has three Free Trade Zone (FTZ) authorities, namely PSA Corporation Ltd, Jurong Port Pte Ltd and the Changi Airport Group (Singapore) Pte Ltd. The nine FTZs are Brani Terminal, Keppel Distripark, Pasir Panjang Wharves and Terminal, Sembawang Wharves, Tanjong Pagar Terminal, Keppel Terminal, Jurong Port, Changi Airport Group and the Changi Airport Cargo Terminal Complex. They provide a wide range of facilities and services 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, and they can also be processed and re-exported with minimum customs formalities. More information can be obtained via Singapore Customs.
GST is suspended for imported goods deposited in an FTZ and will only be payable upon removal from the FTZ for local consumption. GST is not payable on supply made in FTZ if the goods supplied are meant for transshipment or re-export.
The FTZs at the port facilitate entrepot trade and promote the handling of transshipment cargo. They offer free 72-hour storage for import/export of conventional and containerized cargo and 140-day free storage for transshipment/re-export cargo.
There are many warehouse options available in Singapore. Some of the more popular ones are located close to the port and within easy reach of the airport and the Jurong industrial hub. These include the Tanjong Pagar, Alexandra and Pasir Panjang distriparks which are home to many established multinationals. The varying designs and sizes of the distriparks cater to Central Distribution Center operators, manufacturers, traders, freight forwarders and others. The Singapore Customs website maintains a list.