Singapore Free trade zone guide
For foreign businesses to distribute their products globally from directly from Singapore’s hub
What are free trade zones in singapore?
Singapore’s free-trade zones are special economic zones that provide enterprises operating within them with preferential customs and tax status. Take advantage of several tax breaks and simplified customs regulations when you make Singapore your preferred export hub. Singapore’s free trade zones are an appealing choice for foreign enterprises searching for a center from which to distribute their products worldwide.
Key advantages of Singapore Free Trade Zones
No Import Permit Is Needed in Free Trade Zones in Singapore
In general, an importer must get a customs permission prior to the actual import of goods. However, when importing into Singapore’s fair-trade zones, this paperwork is not necessary.
No Goods and Services Tax on Imports
To relieve businesses of the difficulty of having to account for GST on multiple shipments of products, such supplies are disregarded for GST purposes (except for supplies of local goods to Singapore free-trade zones, which remain taxed). In other words, any value added to imports within a Singapore free-trade zone is exempt from value added tax. Thus, economic operations carried out within Singapore’s free-trade zones are tax exempt.
Furthermore, if you move products from an free trade zones outside of Singapore (i.e., transshipment) without entering customs territory, the goods are exempt from GST. As a result, you are not required to declare such overseas goods movement in your GST return.
No Customs Duties on Goods Imported into Free Trade Zones
Certain categories of commodities are considered dutiable under Singapore law. This means that when they are imported into Singapore, they are subject to tax according to value or particular rates of duty. Intoxicating liquors, tobacco products, motor vehicles, petroleum products, and biodiesel blends are the four basic categories of dutiable items.
If such products are brought into a Singapore free-trade zone, they are deemed goods under Singapore customs supervision and are so exempt from customs duties.
Exemptions
Import and duty GST is only payable when items are consumed within the free trade zone in Singapore or enter Singapore’s customs jurisdiction for local sales or domestic consumption.
In such instances, you must get an import permission from free trade zone’s Singapore Customs and pay import GST or import duty on foreign items used or consumed within an free trade zone or imported into free trade zone Singapore Customs area. When transporting products straight from one Singapore free-trade zone to another, import GST and tax are not due, and no import authorization is necessary.
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how to register for Free trade zones in singapore
List of Free Trade Zones available in Singapore
- Airport Logistics Park of Singapore
- Brani Terminal
- Changi Airport Cargo Terminal Complex
- Jurong Port (including Pulau Damar Laut)
- Keppel Distripark
- Keppel Distripark Linkbridge
- Pasir Panjang Terminal
- Sembawang Wharves
- Tanjong Pagar Terminal and Keppel Terminal
To operate in Singapore’s Free-trade zones, two types of permissions or licenses are required. The first is only available to business users, whilst the second is only available to individuals and has a limited temporary validity. To apply for a permit, you must agree to follow the relevant agency’s permit restrictions, safety laws, and security rules.
A temporary permit with a validity period ranging from 24 hours to two weeks might be issued. Corporate permits are typically good for one to three years and come with a variety of prices. An authority normally issues any of the two types of permits in no more than four days.
Permits and Licenses Required for Operating in Free Trade Zones
To operate in one of Singapore’s free trade zones, businesses must get a permit or license from one of three authorities in charge of running the relevant free trade zone. These are the respective authorities:
- PSA Corporation Limited administers the following free-trade zones in Singapore:
- Pasir Panjang Terminal
- Keppel Distripark Linkbridge
- Keppel Distripark
- Brani Terminal
- Sembawang Wharves
- Tanjong Pagar Terminal and Keppel Terminal
- Jurong Port Pte Ltd is the authority appointed to operate:
- Jurong Port (including Pulau Damar Laut)
- Changi Airport Group (Singapore) Pte Ltd is responsible for:
- Airport Logistics Park of Singapore
- Changi Airport Cargo Terminal Complex
EBOS Cloud Accountants can help our clients who want to conduct their business in a Free Trade Zone examine their project’s eligibility, write a detailed business plan, meet registration criteria, and register their company directly with the necessary government institution in ACRA.
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