For who?

• Business who:
  
  
  • are GST-registered with the Inland Revenue Authority of Singapore (IRAS),
    
    
  • are registered with Singapore Customs (SC), and
    
    
  • do not have any major non-compliance records with SC and IRAS.

• You must also ensure that:
  
  
  • your zero-GST (ZG) warehouse is a storage place that is physically secured,
    
    
  • you have good stock record-keeping and warehouse procedures, and
    
    
  • the goods stored in your ZG warehouse are non-dutiable goods.

For what?

• As long as your goods are stored in ZG warehouses, you can bypass the Goods & Services Tax (GST) process. You only have to pay GST on imports when they are released from your ZG warehouse for local consumption.
  
  
• Businesses  can apply for any of the following types of licences according to their needs:
  
  
  • Type I: At least 80% of the goods imported and stored are re-exported.  Minimal record-keeping and internal controls required.
    
    
  • 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 have multiple ZG warehouses and goods can be moved between ZG warehouses without approval from Singapore Customs.

How does it work?

• You must obtain a licence from Singapore Customs to turn your ordinary warehouses into ZG warehouses.
  
  
• You need to pay an annual fee for the licence (Type I, Type II or Type III).
  
  
• The fee you pay is determined by the average stock value of the goods stored in the warehouse.
  
  
  

  Average Stock Value	Fee
  S$1 million or less	S$1,000
  More than S$1 million but less than S$5 million	S$2,500
  S$5 million or more	S$4,000

Things to note

• The Bonded Warehouse Scheme (BWS) has been discontinued and replaced by ZGS from 1 January 2006. Previous BWS operators have been automatically given Type I licences under ZGS.
  
  
• You can keep your goods in the ZG warehouse for an indefinite period.
  
  
• You may store locally bought goods in non-designated areas of your ZG warehouse.
  
  
• ZG warehouses are only for non-dutiable goods. Businesses can use the Licensed Warehouse Scheme (LWS) for dutiable goods.

For more info

Zero GST Warehouse Scheme (ZGS)
ZGS Handbook (PDF)
Singapore Customs