Free trade zone singapore customs

How much do you understand about free trade zones? All goods imported by sea or air must first be deposited in a FTZ. If it is not practical to do so, you may be allowed to deposit the goods in Customs ’ approved premises such as licensed warehouses.

AFTA eliminates all tariffs for all product lines. Free Trade Area (AFTA) Key Benefits.

Allows for back-to-back shipment of goods within member countries. Safeguards market access and ensures a more predictable operating environment for service suppliers. Malaysia is one of the rising stars of South-East Asian tourism, a nation looking to the future while cherishing the ways of the past. Centuries of trade have resulted in a vibrant mix of Malay, Chinese, Indian. Section 128C of the Customs Act) A fine not exceeding S$100 or the equivalent of the amount of the customs duty, excise duty or GST payable, whichever is the greater amount, or imprisonment for a term not exceeding months, or both.

Whenever any manufacturer in a free trade zone wishes to remove into customs territory any semi-finished or finished products which are subject to customs duty from his place or premises of manufacture for local consumption, export or destruction, he shall submit to the proper officer of customs a declaration, in such form as the Director-General may determine, of the goods to be removed. For dutiable goods, the taxable value for GST is calculated based on the CIF (Cost, Insurance, and Freight) value, plus all duties and other charges.

You do not need to declare them as your taxable purchases in your GST return until the goods cross the duty point and enter customs territory. Singapore is generally a free port and an open economy. FTZs are meant to encourage entrepot trading. Free - trade zone , also called foreign- trade zone , formerly free port, an area within which goods may be lande handle manufactured or reconfigure and reexported without the intervention of the customs authorities.

Terms include free port (porto Franco), free zone (zona franca), bonded area (US: foreign- trade zone ), free economic zone , free - trade zone , export processing zone and maquiladora. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. You can store any legal merchandise, domestic or foreign, in a free trade zone warehouse. Merchandise that you bring in from another country is not taxed upon entry. If that same international merchandise goes out for export without leaving the zone , there is no tax or duty charged.

The CEPT only applies to goods originating within ASEAN. The general rule is that local ASEAN content must be at least of the FOB value of the good. The local ASEAN content can be cumulative, that is, the value of inputs from various ASEAN members can be combined to meet the requirement. No building or structure shall be erected within a free trade zone less than metres from the perimeter of the zone, except with the prior written permission of the Director-General.

Dutiable goods not to be transferred 5. Under this scheme, import GST on non-dutiable overseas goods is suspended when the goods are moved into a ZG warehouse.

GST is payable only when the imported goods leave the warehouse and enter the local market. Some businesses choose a Customs bonded warehouse because goods stored there can move between other bonded warehouses. Further, goods can also move into free trade zones for export, deconstruction or permanent storage of the product. Another advantage to Customs bonded warehouses is associated with increased storage times.

An FTZ is especially useful to firms that import components to manufacture finished products for export. Port of Tanjung Pelepas free zone. Inverted tariff works when an importer with manufacturing authority within an FTZ is allowed to admit their components into the zone duty- free , manufacture the finished goo and pay CBP duties on the foreign content in the finished good at the lower duty rate of the finished goods at the time of entry.

Below are the three general documentary processes in using FTA. The process from registration to receiving PCO would typically take less than one month. Please refer herefor more information. The authority of a free trade zone shall —. No duty or taxes are payable on goods stored in an FTZ, but they are payable when the goods leave the FTZ and enter into customs territory for local consumption. Information on each FTA can be found below.

Authorised Economic Operator (AEO) ASEAN Customs Transit System (ACTS) Free Zone. The Oil and Gas Free Zones Authority (OGFZA) is the national regulatory agency superintending over the operation of the oil and gas free trade zones in the country. OGFZA was established by Section of the Oil and Gas Export Free Zone Act No.