During the Budget Speech on 22 January 2009, the Minister for Finance announced that with effect from 1 April 2009, GST and/or duty would be suspended on qualifying goods that are permitted to be temporarily removed from a Zero-GST or Licensed warehouse (“approved warehouse”) for qualifying events.  The GST and/or duty on the sales of the goods at the events would be further suspended when the goods are returned to any approved warehouse after the events. 

Qualifying goods include wine falling under HS Headings 2204 and 2205 and selected HS heading 2206 and all imported non-dutiable goods.  The list of wines is attached in the one-page Annex enclosed.

Qualifying events refer to auctions or exhibitions, including related activities such as auction previews and trade fairs.  The allowable temporary removal period is for a maximum of 1 month or the duration of the qualifying events, whichever is earlier.

These changes are intended to promote specialised storage facilities, as well as auctions and exhibitions in Singapore.

Procedures Relating to Permit Requirements 

The warehouse licensees would need to pre-register the event with their Account Managers in Singapore Customs.  A removal permit must be declared for the temporary removal of the goods covering the movement from the warehouse to the qualifying event venue.  At the end of the qualifying event, the goods are to be returned to any approved warehouse via a removal permit.  For any goods that are not returned to the approved warehouses after the event, a payment permit must be taken up to pay the import GST and/or duty suspended earlier.

If the goods sold are for export, a removal permit must be taken up to return the goods to the approved warehouses for subsequent export under an outward permit.  At the time of export, the goods with the accompanying outward permit must be produced for clearance at the checkpoints manned by Immigration & Checkpoints Authority (ICA).  If the goods are to be hand-carried for export by air, the goods and the outward permit would need to be produced to Singapore Customs at the Hand-Carried Exports Counter for clearance.  For details on the documentation required, please refer to IRAS’ e-tax guides “A Guide for Exports” and “GST: Guide on Hand-Carried Export Scheme (HCES)” at www.iras.gov.sg.

The warehouse licensee is responsible for the goods that had been temporarily removed. GST and/or duty would be recovered on any goods that are not accounted for.

Procedures Relating to Accounting of GST to IRAS (for GST-reistered entities)

In general, if the licensee (acting as a GST agent under Section 33(2) of the GST Act) or importer is GST registered, he can claim the GST paid as input tax if it is incurred for business purposes and attributable to the making of taxable supplies, which is the sale of the goods in this case.  

If the goods are consumed/given away and not returned to the approved warehouse and the licensee (acting as a GST agent under Section 33(2) of the GST Act) or importer is GST registered and entitled to claim the input tax, he will need to account for deemed output tax to IRAS on goods given away (subject to some exceptions) and goods consumed for private use.  More details can be found on IRAS’ website at www.iras.gov.sg.

If the goods are sold and delivered locally without being returned to the approved warehouse and the seller (which includes auction houses) is GST-registered, he has to charge GST on the sale of goods delivered locally and account the output GST to IRAS.

For more information, please approach your Account Manager in Singapore Customs directly or email us at customs_schemes@customs.gov.sg.