FTZ
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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.

Where Are The FTZs?

There are five FTZs located at:

  • Port of Singapore
  • Jurong Port
  • Sembawang Wharves
  • Pasir Panjang Wharves
  • Airport Logistics Park of Singapore (ALPS)

Goods imported and stored in FTZ before exporting:

If you import your goods and store them in a FTZ before exporting them, you do not need to report this import in the GST return because it is a transhipment; which is outside the scope of GST.
Goods removed from FTZ into customs territory
If you remove the goods from the FTZ into the customs territory for local consumption, GST will be payable.”
Goods used or consumed within FTZ
GST will be payable if the goods supplied are used or consumed within the FTZ.

Documentation in a Free Trade Zone

Customs control in a Free Trade Zone is minimal as it is meant to facilitate entrepot trade. All goods imported by sea or air must first be deposited in a FTZ except:

  • Where the Director-General of Singapore Customs is satisfied that for any reason it is not practicable to deposit such goods in a FTZ, he may either generally, by order or in any special case exempt such goods from being so deposited; and
  • Certain classes of goods, such as intoxicating liquors, cigarettes, cigars, cheroots, beedies, snuff, manufactured and unmanufactured tobacco must be stored in approved premises licensed under the Customs Act, Cap 70.

No Customs permit is required for transhipment of dutiable goods under through bill of lading/airway bill if:

  1. The goods arrived by air and are to be transhipped by air within the same FTZ by internal delivery;
  2. The goods arrived by sea in containers and the containers are to be transhipped without unstuffing or re-working within the same FTZ by internal delivery.