In determining whether a product is of Singapore origin, an Ordinary Certificate of Origin or a Preferential Certificate of Origin can be issued if they meet the relevant criteria of being locally manufactured under the various Schemes of Preference and Free Trade Agreement. This criterion is known as the Rule of Origin.
When exporting a locally manufactured product into the importing country, the product is subjected to import tariffs. To encourage the economic growth of various countries in the world, countries participate in various Schemes of Preference which grants participating countries' exports lower import tariffs when imported into countries offering the scheme. Countries also sign Free Trade Agreements with each other to encourage economic growth through investments and increased trade flow between them through lowering of import tariffs.
The GSP Scheme offers preferential tariff treatment for eligible products exported from developing countries (or beneficiary or donee countries) to the developed countries (or donor countries). Concessions granted can be in the form of reduced tariff or full exemption from tariff.
Singapore is a beneficiary for exports of locally manufactured goods to the following Donor countries:
- Canada
- Russian Federation
A scheme offered by Mauritius and Seychelles extending preferential import duty on eligible products exported from Singapore.
A system offering preferential tariff treatment for eligible products exported from a participant country to another participant country. The concessions granted take the form of reduced tariff or full exemption from tariff.
Participant countries extending concessions under this scheme are listed below:
Algeria
Argentina
Bangladesh
Benin
Bolivia
Brazil
Cameroon
Chile
Columbia
Cuba
Democratic People's Republic of Korea
Ecuador
Egypt |
Ghana
Guinea
Guyana
India
Indonesia
Iran (Islamic Republic of)
Iraq
Libyan Arab Jamahiriya
Malaysia
Mexico
Morocco
Mozambique
Myanmar
Nicaragua
Nigeria |
Pakistan
Peru
Philippines
Republic of Korea
Romania
Singapore
Sri Lanka
Sudan
Thailand
Trinidad & Tobago
Tunisia
United Republic of Tanzania
Venezuela
Vietnam
Yugoslavia
Zimbabwe | |
The Ministry of Trade & Industry has negotiated and concluded several Free Trade Agreements with various countries. These Agreements are either bilateral agreements, e.g. Singapore and Korea, or multi-lateral, e.g. ASEAN (where Singapore is a member) and China. Information on the Free Trade Agreements Singapore has signed and in the process negotiations can be found at IE Singapore’s FTA website, http://www.iesingapore.gov.sg/wps/portal/FTA . The list below shows the list of countries Singapore has concluded FTAs with.
| ASEAN Free Trade Area |
Japan |
| ASEAN & the People's Republic of China (ACFTA) * |
Korea |
| ASEAN & Korea (AKFTA) |
New Zealand |
| Australia |
Panama |
| European Free Trade Association |
Trans-Pacific SEP (Brunei, New Zealand, Chile, Singapore) |
| Hashemite Kingdom of Jordan |
United States |
| India |
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* Only the Trade in Goods Agreement has been signed. The ACFTA is still under negotiations.
To qualify a Singapore product for as wholly obtained, produced for Singapore for an Ordinary or Preferential Certificate of Origin, it must be either:
- wholly obtained in Singapore, ie, wholly grown in Singapore or produced in Singapore without any imported materials as stipulated here ( DOC 20kb ) or in the relevant Free Trade Agreement); or
- manufactured in Singapore from materials and parts, which are either wholly or partly imported, according to the appropriate rules of origin and must not be made through a simple or minimal operations as stipulated here ( DOC 21kb ) or in the relevant Free Trade Agreement.
For manufactured product for export, the rule of origin is by both or either one of the following criteria:
- The process criterion
Under the process criterion, the imported materials must have undergone substantial transformation. This result in the final product qualifying to be classified under a different tariff classification, as distinct from those classified for the imported materials. There are, however, certain exceptions to this rule.
- The value-added or percentage criterion
For this criterion, the origin is determined by the percentage of either the imported materials or the local materials plus the direct processing cost in relation to the ex-factory cost or ex-factory price of the product.
The guide here ( DOC 93kb ) provides a quick overview of the various Rules of Origin Singapore exporters need to meet in order to qualify for an Ordinary CO and a Preferential CO under the various Schemes of Preference and Free Trade Agreements.
Under the Singapore-Australia Free Trade Agreement, raw materials which cannot be manufactured in either Singapore or Australia, and are imported, can be considered as a local raw material under the DMRM scheme. The latest list of products approved under DMRM can be downloaded here ( DOC 26kb ).
The application for the DMRM can be downloaded here ( DOC 76kb ). Explanatory notes are downloadable here ( DOC 36kb ).
- General Guide to Manufacturer's Exporting Goods under Free Trade Agreements ( DOC 117kb )
- Free Trade Agreement with Australia ( DOC 250kb )
- Free Trade Agreement with Japan ( DOC 118kb )
- Free Trade Agreement with European Free Trade Association ( DOC 99kb )
Depending on the regulatory authority of the importing country, the certification of origin for a product can be made in the form of self-certification by the importer/exporter on the products' commercial invoice or by an official letter by the importer/exporter. The certification of origin can also be made through the application of a Certificate of Origin with the authorised authority in the exporting country. The application procedures with Singapore Customs can be found here.
Exporters must check the certification arrangements required in the various Schemes of Preference and Free Trade Arrangements and make the appropriate mode of origin certification for their exports.
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