You can suspend GST on non-dutiable goods by storing or depositing them in zero-GST (ZG) Warehouses.
What Goods Can Be Stored In ZG Warehouses?
Why Store My Goods In ZG Warehouses?
Who Provides ZG Warehouses?
Can My Own Warehouse Be A ZG Warehouse?
What Goods Can Be Stored In ZG Warehouses?
- ZG Warehouses are for storage of non-dutiable goods.
- They cannot be used for storage of dutiable intoxicating liquors, petroleum products, tobacco products and motor vehicles.
- ZG Warehouses can also be used to store approved non-dutiable commodities such as coffee, pepper, rubber, base metal, crude oil and petroleum products.
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Why Store My Goods In ZG Warehouses?
- The main advantage is Goods & Services Tax (GST) is suspended in ZG Warehouses until the goods are removed from the premises and enter the local market for consumption.
- In addition, the movement of goods between ZG Warehouses also does not attract GST.
- There are 3 types of ZG Warehouses:
- Type I: At least 80% of the goods imported and stored are re-exported.
- Type II: There is no requirement that imported goods must be re-exported. However, you can only operate from a single ZG warehouse and you must have a computerised inventory system.
- Type III: There is no requirement that imported goods must be re-exported. You can store your goods in multiple ZG warehouses and goods can be moved between ZG warehouses under the same licence without approval from Singapore Customs.
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Who Provides ZG Warehouses?
- Warehouse facilities may be provided by:
- manufacturers
- wholesalers
- distributors
- private warehouse operators
- With effect from 1 January 2006:
- Bonded Warehouses have been discontinued.
- Previous Bonded Warehouse Operators have been automatically given Type I licences to operate ZG Warehouses.
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Can My Own Warehouse Be A ZG Warehouse?
- You can convert part of or your whole warehouse into a ZG Warehouse through the Zero GST Warehouse Scheme (ZGS).
- You need to pay a licence fee to Singapore Customs.