Free trade zones in Singapore are specific areas that allow the importation, selling, or export of goods without accounting the payment of customs, excise duties, orgoods and services tax. These areas are used to encourage trade and facilitate the transshipment of goods to and from Singapore. Goods can be stored temporarily in Singapore and then loaded into another ship or aircraft for exporting without the need for customs clearance. Singaporean free trade zones allow the warehousing, storing, distribution, transshipment, and exportation of goods. Free trade zones in Singapore are covered by the Free Trade Zones Act. Our lawyers in Singapore can guide you if you want to open a free zone company in the country.
The video below offers information on Singapore's free trade zones:
GST exemption of free trade zones in Singapore
GST stands for goods and services tax. GST is generally imposed on all types of goods and services in Singapore. Foreign goods that are entered into free trade zones in Singapore are not subject to GST. This is because Singapore is engaged in entrepot trade, which is a mode of trading wherein imported goods are immediately exported without any further processing or repacking. Goods entered into free trade zones are only taxed when they are taken out of the area and entered into customs territory. Our law firm in Singapore can advise you on how to exempt your goods from GST.
Free trade zones in Singapore
Free trade zones are created through a declaration by the Minister of Singapore, which os then published in the Official Gazette. After such creation, the area is now under the supervision of the Singaporean Free Trade Authority, the entity that administers, maintains, and operates the free trade zones. Currently, Singapore has nine free trade zones. These are:
- Brani Terminal;
- Keppel District Park;
- Tanjong Pagar Terminal and Keppel Terminal;
- Jurong Port;
- Sembawang Wharves;
- Pasir Panjang Wharves;
- Changi Airport Group;
- Changi Airport Cargo Terminal Complex;
- Singapore Freeport located in Airport Logistics Park.
Currently, there are three free trade zone authorities in Singapore. These are PSA Corporation Ltd., Jurong Port PTE Ltd., and Changi Airport Group PTE Ltd. They are in charge of providing and maintaining facilities in the area that are necessary for the proper and efficient operation of the free trade zones. They are also in charge of enforcing the requirements laid down in the Free Trade Zones Act. Our attorneys in Singapore can tell you what these requirements are.
If you plan on placing your goods in one of Singapore’s free trade zones, make sure you comply with the requirements. We invite you to contactour Singapore lawyers who can help you.
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