Singapore's customs clearance procedures are relatively simple and convenient. With the exception of special tariff policies for alcohol, tobacco (including cigarettes), sugar products, and refrigerators, tariff rates are generally low, with an ad valorem duty rate of 5% (automobiles are an exception, with a rate of 45%). Since 1994, Singapore has adopted a simplified trade classification system, using 2,600 items to replace the 5,700 items previously used.
Singapore does not impose customs surcharges, but it does levy a 3% Goods and Services Tax (GST) on imports, which is calculated based on the dutiable value (e.g., the sum of production costs, insurance, freight, and customs duties). Customs authorities use the Brussels Definition of Value (BDV) to value imported goods. Except for motor fuel, the price of imported goods should be the normal price, which is the price at which the goods would be sold in the open market between independent buyers and sellers at the time the duty becomes payable.
The tax amount generally includes the FOB price, freight, insurance, marketing fees (at a flat rate of 1%), and commissions, as well as various surcharges incurred during the sales and delivery process. Ad valorem rates are applied to determine such prices. If there is a special relationship between the importer and the supplier, customs will adjust the invoice price to reach the price determined by the Brussels Definition of Value. Specific duties on alcohol, tobacco (including cigarettes), bird eggs, and refrigerators are determined by weight, volume, and units of measurement. If a tariff rate can be expressed as either a specific duty or an ad valorem duty (such as for motor fuel), the duty payable shall be the higher of the two.
Regarding shipping documentation, Singapore Customs requires importers to provide a full set of import documents, including a commercial invoice signed by the importer's manager, clearly stating the product name, quantity, unit price, country of origin, invoice number, and the name of the vessel transporting the goods.
The bill of lading must include the names of the carrier, the shipper, and the means of transport, as well as the port of destination and the bill of lading number. For air transport, an air waybill is used in place of a bill of lading, with the same filling requirements. When declaring imports, in addition to submitting a completed import declaration form, a TDB stamp duty of 2 Singapore dollars must be paid.
New products must be accompanied by samples. Import licenses are valid for 2 months. Singapore Customs has the right to dispose of non-compliant products without providing compensation to the importer or owner. Additionally, goods stored in customs bonded warehouses can be stored free of charge for 48 hours, after which fees will be charged on a monthly basis.
Goods may be kept in a bonded warehouse for 12 months. Upon application, the period may be extended by 1 month at a time. If the deadline is exceeded and fees remain unpaid after reminders, the Customs Authority may auction the goods. The proceeds from the auction will be used to pay customs duties, storage fees, and all expenses related to the custody of the goods.
