Traders, or the appointed forwarding agents of the traders, are required to furnish security for transactions involving dutiable goods. Security may be needed for the faithful and incorrupt conduct of their agents or employees.
Security is also required for the operation of licensed warehouses, licensed factory warehouses, approved yards for Class II cargoes, petroleum refineries and installations, release of goods pending classification, for repairs, conversion or exhibitions.
The security furnished shall be in the form of a bank/finance company guarantee or insurance bond.
No security is necessary for transhipment of dutiable goods under "through" bill of lading/airway bill except for transhipment of liquors and tobacco (including cigarettes) by external delivery.
Upon registration, a company is required to furnish a bank/finance company guarantee (BG) or insurance bond as security to cover:
- the potential duties involved for its transactions of dutiable goods; and
- the potential GST on its temporary imports of non-dutiable goods.
The insurance company which issue insurance bond must be registered with Monetary Authority of Singapore (MAS) under the Insurance Act. The company must be either a direct general or direct composite insurance company listed under MAS "Directory" of Financial Institution".
For each import, export, transshipment and removal of dutiable goods, the amount of bank guarantee/insurance bond required, subject to a minimum of $1,000/-, is:
- 50% of the potential duty for liquors and tobacco (except leaf tobacco),
- 10% of the potential duty for other dutiable goods, or
- 100% of the duty if the duty payment involved in a consignment exceeds $2,000/-.
For the temporary import of dutiable motor vehicles for repairs, exhibition and other approved purpose, the amount of bank guarantee/insurance bond required is:
- 30% of the potential duty and GST payable on the motor vehicle if the importer is GST-registered, or
- 50% of potential duty and GST payable if the importer is not GST-registered.
For temporary import of certain selected goods such as jewellery, precious stones, handbags, garments, antiques, watches, etc for repairs and other approved purposes, the BG/insurance bond required is:
- 50% of the potential GST payable on the selected goods if the importer is GST-registered, or
- 100% of the potential GST payable on these selected goods if the importer is not GST-registered.
Please click here ( PDF 276kb ) to view the list of the selected goods subject to this requirement.
For the temporary import of non-dutiable goods, the amount of bank guarantee/insurance bond required is:
- 30% of the potential GST for exhibition with sales/auctions, or
- 30% of the potential GST for repairs and other approved purposes for GST-registered companies, or
- 50% of the potential GST for repairs and other approved purposes for non-GST registered companies.
No security is required for:
- import, export and transshipment of unmanufactured leaf tobacco,
- transhipment of dutiable goods under 'through bills of lading' within the same free trade zone (FTZ),
- transhipment of dutiable goods other than liquors and tobacco under 'through bills of lading' through Customs territory,
- inter-gateway movement of LCL containers for unstuffing of cargoes in the FTZ, and
- blanket permits issued for petroleum products.
A declaring agent, in submitting a TradeNet® declaration to Customs, may opt to use the importer's banker's guarantee/insurance bond by selecting 'I' (for importer) for the BG Indicator.
However, the declaring agent must be authorised by the importer for this purpose by using the 'Authorisation of Declaring Agent' form available under 'Online Forms' at the TradeXchange website.
The security, in the form of banker's guarantee/insurance bond, must be lodged on the prescribed formats downloadable at the Customs website. The form "Banker's Guarantee/Insurance Bond Specimen (Permits)" ( DOC 29kb ) is meant for lodgement of security to cover permit declarations only, while the form "Banker's Guarantee/Insurance Bond Specimen (Licensed Premises)" ( DOC 31kb ) is meant for lodgement of security in respect of Customs permit declarations and operation of licensed premises.
The original banker's guarantee/insurance bond should be sent by post to: Head, Procedures & Processing Branch, Singapore Customs, 55 Newton Road, #09-01 Revenue House, Singapore 307987.
The minimum validity period of a banker's guarantee/insurance bond is normally one year. Before expiry of banker's guarantee/insurance bond, Customs will inform the company to renew the security. The company should then arrange with its bank/finance company for a new banker's guarantee/insurance bond to be submitted to Head, Procedures & Processing Branch. The expiry date of a banker's guarantee/insurance bond should be at year-end (i.e. 31 December).
If a company wishes to withdraw its banker's guarantee/insurance bond, it should inform Customs in writing. The banker's guarantee/insurance bond will be returned to the company when it has been confirmed that the company has no outstanding matters with Customs. Expired securities will not be returned to the banks/insurance companies.
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