The fundament of Singapore’s economy is the developed legal framework encouraging foreign investments and the trading activities carried out by the large number of companies in the city-state. According to numerous reports, Singapore has one of the most open economies and business-friendly environment in the world, which is why it is very easy to import and export goods and services in and outside the island. The Singapore taxation system and import and export simplified procedures are also one of the main reasons opening a trading company is very advantageous for foreign enterprisers.
You can watch the video below for additional information about imports and exports in Singapore:
According to the World Trade Organization, Singapore is the 14th largest exporter and the 15th largest importer in the world. Singapore also has one of the highest trade to Gross Domestic Product ratio among all countries, representing approximately 408%. With strong trading relations with its neighboring countries China, Malaysia, Indonesia and Hong Kong, approximately 35% of the city-state’s total exports are destined to these countries. Other important export partners are the United States, India, Japan and a few countries in Western Europe. At the top of the exported products list is refined petroleum. However, Singapore also exports computers and a high amount of medicines.
With respect to imports, most Singapore companies import products that can be re-exported. Among the countries Singapore imports the most from are China, Malaysia, the United States, the UAE and Germany. Petroleum is the most imported product in Singapore.
Companies importing goods into Singapore are required to obtain an IN Permit and pay the duty or the goods and services tax. However, special incentives are available under the License Warehouse Scheme for Singapore companies importing liquors, tobacco, petrol and vehicles and the Zero GST Warehouse Scheme.
Singapore companies exporting goods are required to apply for an OUT Permit or an OUT Temporary Consignment Permit for goods exported through the Temporary Import Scheme.
For additional information about the available import incentive schemes, please contact our Singapore law firm.
There are no comments