This section explains how the Industrial Exemption Factory Scheme works, how to apply for this scheme, the conditions for approval and the obligations of a licensee.
Industrial Exemption Factory Scheme is a duty-exemption scheme available to industries using dutiable raw materials.
Local industries using dutiable raw materials may apply for duty exemption. Applications should show the quantities/annual requirements of such raw materials and the description and quantities of the products to be manufactured.
Duty exempted materials should only be used for the manufacture of the applicants' products (as applied for and stored at the place of manufacture). They must not be sold, transferred or disposed of in any way without Customs permission. Manufacturers are required to maintain proper records and provide adequate facilities for officers of Customs to examine records and stock balances.
You may apply for industrial exemption by efiling here.
Together with the application form, you are also required to submit the following documents to Schemes Promotion & Administration Branch, Singapore Customs, 55 Newton Road #07-01, Singapore 307987:
- A copy of the site plan and the lay out of the intended licensed premises.
- Your organization chart showing the personnel in-charge of the intended licensed premises. The chart should contain the full names and responsibilities of your staff.
- Copy of Company registration Certificate.
- Catalogues of products - information on products to be manufactured.
- Production formula.
A processing fee of $225 is charged for the approval of a Duty Exemption Certificate where the potential duty exceeds $100. Payment of the fee must be made through Inter-bank GIRO (IBG) System.
Upon approval, applicants will be required to furnish security in the form of a bank guarantee to cover the potential duty of the duty-exempted product.
Responsibilities of the Licensee:
- Accountable for the dutiable goods stored in the licensed premises.
- Obtain prior approval from Customs for any structural alteration to the licensed premises and licensed area(s).
- Ensure adequate security measures in the licensed premises.
- Ensure that all entrance/exits must be secured when there is no movement of dutiable goods in the licensed premises.
- Comply with the Customs Act and Customs Regulations and other conditions imposed.
- Inform Customs without delay if discrepancies between the actual stock and the recorded stock were discovered at any time.
- All import, export and removal of goods from and/or to the licensed premises must be covered by relevant Customs permits electronically through the TradeNet® system.
Customs may conduct periodic audits, including spot checks on the physical stocks stored in the premises.
Should you need further clarification on the Industrial Exemption Factory Scheme, you may contact Singapore Customs at our Call Centre number 6355 2000 or email us at customs_documentation@customs.gov.sg.
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