Free Trade Zones (FTZs) are essentially designated areas in Singapore where the payment of duties and taxes are suspended when the goods arrived in Singapore.
What Are Free Trade Zones (FTZs)?
Who Benefits From FTZs?
Who Can Use FTZs?
Where Are The FTZs?
How Do I Use FTZs? Do I Have To Pay?
Where Can I Learn More?
What Are Free Trade Zones (FTZs)?
- Free Trade Zones (FTZs) are essentially designated areas in Singapore where the payment of duties and taxes are suspended when the goods arrived in Singapore.
- No duty or taxes are payable on goods that are stored in FTZs. You only need to pay duty and taxes when the goods leave the FTZ and enter into customs territory for local consumption.
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Who Benefits From FTZs?
- They benefit all traders, particularly re-exporters and transhippers.
- Less paperwork and simplified customs procedures for movement of goods within FTZs.
- For instance, no customs permits are required for the transhipment of non-controlled goods.
- Suspension of duty within FTZ benefits traders dealing in dutiable goods.
- Dutiable goods are intoxicating liquors, petroleum products, tobacco products and motor vehicles.
- All dutiable goods can be stored in the FTZs except for liquors and cigarettes.
- Suspension of Goods & Services Tax (GST) within FTZ benefits importers. Otherwise, GST is payable on all goods imported into Singapore.
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Who Can Use FTZs?
- All traders, whether local or foreign, can benefit from FTZs.
- However, the importing, exporting and transhipment of goods requires permits that must be applied via TradeNet®.
- Foreign traders will have to work with local freight forwarders or traders to obtain the necessary permits.
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Where Are The FTZs?
- There are 3 FTZ authorities and the locations of the FTZs under each control are:
- PSA Corporation Limited
- Brani Terminal
- Keppel Distripark
- Pasir Panjang Terminal
- Sembawang Wharves
- Tanjong Pagar Terminal & Keppel Terminal
- Jurong Port Pte Ltd
- The Changi Airport Group (Singapore) Pte Ltd
- Airport Logistics Park of Singapore (ALPS)
- Changi Airport Cargo Terminal Complex
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How Do I Use FTZs? Do I Have To Pay?
Depositing And Storage Of Goods
- Non-dutiable goods can be deposited in FTZs. They can only be stored in FTZs if they are being transhipped or re-exported.
- Dutiable goods can be stored in FTZs, except for intoxicating liquors and tobacco products, which must be stored in Licensed Warehouses.
Repacking, Sorting And Re-conditioning
- Repacking, sorting and re-conditioning can be done in the FTZ, but you need to obtain permission from Singapore Customs first.
- This is useful to traders who are consolidating goods from different shipments or different countries to make up a shipment bound for a new destination.
- It also benefits companies who need to re-condition goods.
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Where Can I Learn More?
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