The Zero GST Warehouse Scheme (ZGS) comes into effect on 1 Jan 2006. This page explains how a zero-GST (ZG) warehouse works, the qualify criteria of the scheme and the responsibilities of operating one.
The ZGS is administered by Singapore Customs (SC), for companies who wish to suspend GST on their imported goods. There are three licence types, namely Warehouse Type I, Type II and Type III, to cater to the different needs of companies.
A Warehouse Type I licensee has to ensure that at least 80% of its imports are re-exported. Type II and Type III licensees are not subject to this export requirement. In addition, a Type III licensee can operate, and move goods freely between, multiple ZG warehouse locations under a single licence.
Generally, the higher the level of facilitation and flexibility accorded to your company, the greater will be SC's requirement on your company's quality of record-keeping and internal controls.
In this regard, the level of facilitation and flexibility accorded, and SC's requirement on your company's record-keeping and internal-controls standard, increase as you move from Warehouse Type I to Type III.
A ZG warehouse is a designated area approved by SC for storing imported goods with GST suspended. Depending on circumstances, a ZG warehouse may be the entire premises, a designated part of the premises, a storage tank or any other places approved by SC. The designated part may be demarcated with lines, separating it from other areas.
As a general rule, you can warehouse any goods, except:
- dutiable goods;
- locally-acquired or locally-manufactured goods; and
- GST-paid goods.
Generally, as an approved licensee, you enjoy the following benefits:
- The ZG warehouse may be located anywhere in Singapore;
- GST is suspended on all goods within the ZG warehouse, even if there are supplies while the goods are within the ZG warehouse; and
- You can keep the goods in the ZG warehouse for an indefinite period of time.
To operate a ZG warehouse, you must satisfy the following pre-criteria:
- You are a GST-registered trader with the Inland Revenue Authority of Singapore (IRAS);
- You are a registered trader with SC;
- You must not have major non-compliance records with SC and IRAS;
- The premises designated to be the ZG area must be a storage-based facility that is physically-secured; and
- You must have good stock record-keeping and warehouse procedures that ensure accountability of the goods.
These are the basic criteria. You must also meet other criteria specific to each licence type. Please refer to the handbook for the other criteria.
As an approved licensee, you must comply with the following:
- Take up relevant permits for all movement of goods into and out of the ZG warehouse;
- Pay GST before releasing the ZG goods for local consumption;
- Ensure that the nature and quantity of ZG goods received into or released from the ZG warehouse are in accordance with those described in the customs permits. If there are discrepancies, you must apply to SC to amend the customs permit within 24 hours of receiving or releasing the ZG goods, with valid reasons;
- Notify SC if you wish to operate your warehouse under a different company name or Central Registration Number;
- Seek SC's approval before amending the designated ZG area;
- Ensure that the ZG warehouse is not used as a container yard for the temporary storage of containers;
- Comply with the Goods And Services Tax (General) Regulations (Warehousing Regime) and other conditions imposed by SC from time to time; and
- Obtain the necessary clearance from other relevant authorities.
Step 1: With effect from 01 Oct 2005, you may apply for a licence to operate a ZG warehouse by e-filing here.
Step 2: 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 zero-GST warehouse.
- Questionaire for Applicants ( DOC 78kb ).
- A copy of ACRA Registration of Company.
Step 3: On receipt of your application, our officers will contact you for a meeting. Please take this opportunity to raise queries or to clarify your doubts.
Step 4: Our officers may inspect your proposed zero-GST warehouse.
Step 5: In addition, you need to submit the following documents to aid us in the assessment of your application:
- Application for Inter-Bank GIRO ( DOC 325kb ). You need not submit this form if you already have an IBG account with Singapore Customs.
- Registration of Companies / Firms and Signatories ( DOC 453kb ).
- Authorisation of Declaring Agent(s) for License Premise ( DOC 303kb ).
- Your organisation chart showing staff involved in the zero-GST warehouse. The chart should show the full names and responsibilities of the staff.
- Your latest year-end audited financial statement, if any.
- Your warehouse procedural manual on:
- the handling of in-bound cargoes (from receipt of customers'/supplier's instructions, to receipt of the goods into the warehouse and the updating of stock records);
- the handling of out-bound cargoes (from receipt of delivery instructions from your customers, to the point when your stock records are updated);
- stock-taking;
- discrepancy reporting; and
- other controls in place to ensure that the records are updated and accurate.
Your procedural manual should include step-by-step details of the tasks performed by your staff and the documents prepared/generated in the process.
An annual licence fee is payable upon issue of the licence.
The annual licence fee payable is as follows:
It is a 3-tiered rates based on the average stock value of the goods stored in the bonded area:
| $1 million or less |
$1,000 |
| More than $1 million but less than $5 million |
$2,500 |
| $5 million or more |
$4,000 | |
You may refer to "A Handbook for the Zero GST Scheme (Jun 2006 version)" ( PDF 301kb ) or you may email us at customs_schemes@customs.gov.sg if you need further clarifications or advice.
Alternatively, you may contact our officers at telephone numbers (65) 6355 2143 or (65) 6355 2092.
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