Singapore has trade agreements with a number of countries that can benefit traders importing from, or exporting to, these countries.
What Are Free Trade Agreements (FTAs)?
How Do FTAs Help My Import/Export Business?
What Products Qualify For Tariff Concessions Under FTAs?
How Do I Show That My Product Qualifies?
Who Has Signed FTAs With Singapore?
Where Can I Learn More About FTAs?
What Are Free Trade Agreements (FTAs)?
- They are legally binding contracts between two or more countries to bring about closer economic integration.
- One of the aims of FTAs is to eliminate trade barriers and allow goods and services to flow freely between countries. Trade barriers can be tariffs (taxes), onerous regulations, etc.
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How Do FTAs Help My Import/Export Business?
- FTAs provide for tariff concessions, i.e. reduction or elimination of import tariffs or customs duties, on products traded between Singapore and its FTA partners.
- When you export goods to buyers in FTA-partner countries, your buyers pay less duty. In other words, FTAs make your exports more attractive.
- When you import goods from sellers in FTA-partner countries, you pay less or no duty. In other words, you reduce the cost of importing goods.
- Importers should note that Singapore only imposes import duties on beer, stout, samsu and medicated samsu.
- If you are importing any of these goods, please check to see if they are entitled to “preferential tariff”, i.e. you can pay less or no duty when importing goods under Free Trade Agreements.
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What Products Qualify For Tariff Concessions Under FTAs?
- Only products originating from member countries of FTAs qualify for tariff concessions (lower tariffs/duties).
- To decide the "nationality of a product", you must look at the Rules of Origin (ROO). The originating status of a product can be determined by the following Rules of Origin:
- product wholly obtained or produced criterion
- change in tariff classification criterion
- value-added criterion
- process criterion e.g. chemical reaction
- Each FTA applies different ROO. Singapore exporters who want to reap the benefits of FTAs should find out which ROO apply to the product intended for export to the FTA partner country.
- To do so, exporters may use the Tariff Savings/ROO Search on the FTA website.
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How Do I Show That My Product Qualifies?
- Exporters of locally manufactured products can obtain a Certificate of Origin from Singapore Customs to show the "nationality" of their products.
- Not all importing FTA partner countries require this. Some only require that you make a declaration (e.g. New Zealand) that your products meet the specified rules of origin.
- Importers in Singapore can similarly request that their suppliers produce a Certificate of Origin from their Customs authorities, or declaration, depending on what was agreed in the FTA.
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Who Has Signed FTAs With Singapore?
- Singapore currently has agreements in force with the following:
- Fellow members of the Association of Southeast Asian Nations - Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Thailand and Vietnam (AFTA)
- ASEAN-Australia-New Zealand FTA (AANZFTA)
- ASEAN-China (ACFTA)
- ASEAN-India (AIFTA)
- ASEAN-Japan (AJCEP)
- ASEAN-Korea (AKFTA)
- Australia (SAFTA)
- China (CSFTA)
- European Free Trade Association - Switzerland, Iceland, Liechtenstein and Norway (ESFTA-Singapore)
- Hashemite Kingdom of Jordan (SJFTA)
- India (CECA)
- Japan (JSEPA)
- New Zealand (ANZSCEP)
- Panama (PSFTA)
- Peru (PeSFTA)
- South Korea (KSFTA)
- Trans-Pacific Strategic Economic Partnership among Brunei, New Zealand, Chile and Singapore (Trans-Pacific SEP)
- United States (USSFTA)
- Free trade negotiations are also ongoing between Singapore and many other countries, including those undertaken as part of the ASEAN trade bloc.
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Where Can I Learn More About FTAs?
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