InSYNC

	Ride on FTAs to gain a leading edge
	Getting tourist tax refund

Ride on FTAs to gain a leading edge

If yours is a locally manufactured product, it could qualify for the Preferential Certificate of Origin. This will enable your customers to
enjoy tariff savings when importing your products and hence boost
your competitiveness.

Senior Trade Officer Garry Pang and his team from the Documentation Specialist Branch are happy to help companies with their queries on the rules of origin.

As an active and valuable trading partner,
Singapore Customs participates in Singapore's
Free Trade Agreement (FTA) negotiations led by
the Ministry of Trade and Industry.

FTAs offer many advantages for companies operating in Singapore. They include tariff concessions, preferential access to certain sectors, faster entry into markets through mutual recognition of standards and intellectual property protection.

If you export locally manufactured products, you can apply for the Preferential Certificate of Origin (PCO) to gain preferential tariff rates. Singapore Customs is the authorised agency responsible for certifying the origin status of locally manufactured products and issuing PCOs.

Wide FTA network
As at March 2008, Singapore has signed 13 bilateral and regional FTAs with the following countries:

•	ASEAN Free Trade Area (AFTA)
•	ASEAN & China Free Trade Area (ACFTA)
•	ASEAN & Korea (AKFTA)
•	Australia (SAFTA)
•	European Free Trade Association (ESFTA)*
•	Jordan (JSFTA)
•	India (ISCECA)
•	Japan (JSEPA)
•	Korea (KSFTA)
•	New Zealand (ANZSCEP)*
•	Panama (PSFTA) *
•	Trans-Pacific SEP (Brunei, New Zealand, Chile)*
•	United States (USSFTA)*

* Singapore Customs does not issue the certificate of origin under this FTA. You are required to self-certify that your products meet the rules of origin and qualify for tariff concession under the FTA.

Complying with rules of origin
To qualify for the PCO under an FTA, you need to ensure that your product is considered a Singapore-origin good. This means it must meet the rules of origin or criteria stipulated under the FTA, which prove that the last substantial transformation of the product takes place
in Singapore.

The three main criteria, which may be employed solely or in combination, depending on the FTA, are:

•	Change in tariff classification: There must be a change in the first 4 or 6 digits of the HS Code of each imported material used in manufacturing the product.
•	Value-added or percentage rule: The product's local content (value added) must be above a specified percentage of the total unit cost of the final exported good calculated on an ex-factory cost, ex-factory price or free on board basis.
•	Process rule: A stipulated process must be carried out. For example, a chemical product which undergoes a specific chemical reaction in the Singapore factory can be considered a Singapore-origin product.
For more details, click here.

Applying for the PCO
To apply for a PCO with Singapore Customs, follow this procedure:

•	Register your factory with the Documentation Specialist Branch: Customs will inspect your factory. Upon successful application, you will receive a letter of approval and a registration number.
•	Verify the country of origin of your product: Submit the manufacturing cost statement of your product to Customs to verify that it meets the stipulated rules of origin. Each approved cost statement is valid for a year. This means that you can use the same approval letter to obtain PCOs for your subsequent exports within the one-year period.
•	Apply for PCOs via TradeNet^®: You can do so directly if you have the TradeNet^® software. Alternatively, you can apply through TradeNet^® service providers or freight forwarders.
For more application details, click here.