Singapore Customs conducted a public consultation from 15 March to 12 April 2011 to obtain feedback on the proposed implementation of the submission of export declarations prior to export, termed as Advance Export Declaration (AED). Since consultations began in early 2010, the inter-agency taskforce [1] looking into the implementation of AED has taken in many of the comments and feedback from industry. Your feedback was important in helping us improve the implementation details to minimise the impact to trade.

We received 65 feedback submissions from individual companies representing a range of industries during this public consultation exercise. The breakdown by broad trading entity type is shown below. A number of companies gave supportive comments on AED, noting that Singapore was a good and secure location to develop their business. Some companies admitted that they would face issues in complying with AED but were confident that they would be able to manage it.

At the moment, we are working towards 1 Jan 2013 as the implementation date, but we will confirm the exact date by early 2012 so that companies can make their necessary work process changes. Once implemented, there will also be a 'no penalty' phase of 18 months to help companies adjust to and comply with the requirements, and also allow us to monitor the implementation process and review issues. The confirmed implementation details for AED are:

a. What to declare: Export declaration: some fields are allowed to be amended if certain conditions are met. To view the list of fields, click here.
b. Who to declare: As per current practice, the exporter or its declaring agent will be responsible for submitting the AED.
c. When to declare: As early as possible, e.g. before the goods are sent to the sea ports or the air cargo terminals, but not later than the following timelines:
    Sea: 8 hours prior to vessel arrival in Singapore (defined as vessel parking at the berth).
    Air: 1 hour prior to flight departure from Singapore.
d. How to declare: Via TradeNet^® or ACCESS (for companies currently using ACCESS for submission of customs declarations).

We will continue to remain flexible in our approach to minimise undue disruption and meet Singapore's twin objectives of facilitating as well as securing trade, and will seek further feedback after AED implementation to hear from businesses on the implementation/operational issues faced.
 

We present below a summary of the main concerns received together with our responses. Issues specific to particular modes and trading entity type are indicated in brackets.

GENERAL FEEDBACK AND QUERIES

1.      Would AED result in a loss of competitiveness to our companies and to Singapore as a whole?

Currently, about half of total export permits are submitted to Customs prior to exportation, including non-controlled and non-dutiable goods exported by sea or air. In other words, these companies are already providing AED to some extent. A number of countries have already implemented some form of AED for some time. With the current security climate, there is growing emphasis on supply chain security, particularly as the global trading system is vulnerable to terrorist exploitation and disruption. Implementing AED in Singapore would help enhance the security of the global supply chain. Moreover, as AED is a recommended guideline under the World Customs Organisation (WCO), it would enhance Singapore’s status as a secure and responsible trading hub as our exports would be recognised as being of lower risk. 

2.      Singapore Customs should consider exemptions from AED, e.g. companies under the Strategic Trade Scheme (STS) and Secure Trade Partnership (STP) programme.

Following feedback from industry, we will be exempting certain industries and types of goods. For example:

• petroleum in bulk (see response to No. 13 below)
• registered entities exempted from HCES (see response to No. 4 below)
•  supplies to vessels and aircraft
• personal/household effects
•  parcel post
•  trade samples not exceeding $400
• documents
• goods exported by air not exceeding $400

The list of exemptions will be finalised at a later date. As for STS and STP companies, we will take this into consideration and review the possibility of exemptions in future. However, companies are encouraged to get certified under the STS and the STP programme to enjoy a lower risk scoring by Customs so that their goods would be less likely to be targeted for physical checks.

3.      When will AED be implemented?

At the moment, we are working towards 1 Jan 2013 as the implementation date, but we will confirm the exact date by early 2012 so that companies can make their necessary work process changes.

Once implemented, there will also be a 'no penalty' phase of 18 months to help companies adjust to and comply with the requirements, and also allow us to monitor the implementation process and review issues. We will continue to remain flexible in our approach to minimise undue disruption and meet Singapore's twin objectives of facilitating as well as securing trade, and will seek further feedback after AED implementation to hear from businesses on the implementation/operational issues faced.

4.      For ad hoc exports, e.g. hand-carried goods, do we need to take up AED? [air]

Currently, under the Hand-Carried Exports Scheme (HCES), hand-carried goods to be brought out of Changi airport must already be supported by an export permit. Companies that have sought prior approval from the Comptroller of GST for exemption from the HCES will not be required to take up AED. However, the export declaration will need to be submitted within three days of exportation as per current practice. More information on HCES can be found in the relevant e-Tax Guide on IRAS’ website at http://www.iras.gov.sg/irasHome/page.aspx?id=906 .

5.      Information on Place of Receipt and Place of Release are not available as the cargo may be diverted to another buyer at our customer’s request.

We would like to clarify that, as per the current export declaration, the fields for Place of Receipt and Place of Release indicate where the goods are received and released respectively in Singapore, i.e. the Free Trade Zones (FTZ), land checkpoints and any other places in Singapore. These should be available before export.

6.      Cargoes are only physically with us about a few hours before the lodge-in cut-off time to terminals. Most of our cargoes need to be delivered to the terminal 4-6 hours before flight departure. [air; freight forwarder]

Most, if not all, information should be readily available in commercial documents. Depending on the level of IT used by your company, the process of submitting AED should not take too long. We would like to reiterate that companies should submit the AED as early as possible and before the cargoes are delivered to the sea and air ports.

7.      How will terminals verify that we have declared the permits at lodge-in? [air; freight forwarder]

We are currently working with the air ground handling agents (cargo terminal operators) and sea port operators on the detailed processes. In the event that you do not have the hard copy of the permit, you should at least provide the permit number so that they can verify that you have submitted the AED. If the AED has not yet been declared, the cargo will most likely be subjected to physical checks.

8.      Would Customs impose fines if companies do not submit their declarations within the stipulated timeframes? For air, with fast turnaround time, forwarders need to rush to declare permits in order to catch departing flights, leading to an increase in error rate.

The stipulated timeframes are merely a guide. Companies are encouraged to submit the AED as early as possible and before the cargoes are delivered to the sea and air ports so that proper risk assessment of the cargo can be made and that only high risk cargoes are sieved out for physical checks. If the AED has not been declared before the cargo arrives at the sea or air ports, it will most likely be subjected to physical checks, which could result in delays. Penalties will only be imposed for cargoes that are exported without a declaration.

9.      If the forwarder is not able to submit the AED within the timeline, our shipment will be offloaded and this will affect our delivery commitment to our customers. [manufacturer/exporter]

We would like to clarify that we do not intend to prevent the export of cargoes without AED. However, if the cargoes do not have an AED when they are delivered to the sea port operator or the air ground handling agents, they will most likely be subjected to physical checks, and suspected goods could be detained.

10.   We envisage heavy system usage when forwarders rush to declare exports within the time limits. What are the contingencies if TradeNet^® is down and the permit cannot be processed?

We will monitor our system usage to ensure that it can handle the anticipated load increase. However, as with the current practice for import declarations during TradeNet^® downtime, companies can give SC a letter of undertaking in lieu of a declaration. The detailed contingency plans will be shared when we implement AED.

11.   Preferential Certificate of Origin (PCO):

a.   Amendments to permits will affect the PCO application. Can we send in the amendments electronically instead of printing then faxing the approved amended permit to Singapore Customs?

b.   Currently, we apply for PCO together with submitting the export declaration. However, there could be a discrepancy between the dates of the PCO and the bill of lading (B/L), particularly if the vessel departs one day after arrival. Overseas Customs may not accept a PCO dated earlier than the B/L. [sea]

c.   For back-to-back PCO applications, we need to wait for the arrival of the original PCO, usually after the arrival of the physical shipment for ASEAN, before we can submit the export declaration.

d.   The PCO must be unmarked (no endorsement of amendments) for it to be acceptable to overseas Customs.

Singapore Customs is exploring the feasibility of allowing amendments to the PCO by allowing it to be printed separately from the AED. Alternatively, companies can choose to apply for the PCO only when the information is finalised.

FEEDBACK ON DATA AVAILABILITY (within the proposed time limits)

12.   The need for amendments:

a.   The final invoice can only be generated after stuffing and/or loading, hence quantity and value are not available.

b.   We have to collect the cargo and immediately rush it to the air cargo agent. Weighing would only be done at the agent’s premise and cargo would then be immediately sent for launch-in. This process is often after office hours. [air; freight forwarder]

c.   There could be a delay in completion of loading such that the goods may not be exported on the date that was declared in the AED.

d.   There could be last-minute changes to the AED, e.g. additions/deletions/cancellation by the customer, non-delivery by the supplier, or, for sea, if the container is already at full capacity or the vessel is not available.

e.   Currently, there is a short turnaround time of 2 hours from receipt to release to the forwarder. The forwarder will collect the goods then connect immediately to the daily vessel to Indonesia for manufacturing. [sea; warehouse operator]

Companies would not be penalised if you provide estimated data in the AED, e.g. from the pro forma invoice, and make amendments within 3 days of export. However, you should declare the information as accurately as possible for the initial declaration, so that a proper risk assessment can be conducted. If cargoes have been shut-out, companies should cancel the permit. Please click here to view the document listing the information to be submitted in the AED.

13.   Exports of petroleum in bulk [sea]:

a.   The invoice is not yet ready; hence the final quantity and value of petroleum products will not be available. For final quantity, we may need to engage a surveyor who may only confirm it the next day at the earliest, thus missing the vessel.

b.   Products could be sold at fixed prices or at floating prices based on industry benchmarks.

c.   The original B/L is usually available only about 7 days after loading.

d.   There could be exemptions for petroleum companies. Currently, we only need to submit monthly accounting declarations within 10 days of export.

Due to the unique circumstances of the petroleum industry, AED will not be applicable to exports of petroleum. The current permit requirements will continue to apply.

14.   Information on transhipment cargoes may not be available on time.

We would like to reiterate that transhipments (defined as goods on through B/L, through air waybill or through manifest) will not be affected by AED.

15.   There are difficulties in getting information as many parties are involved along the entire supply chain, including for ex-works. Also, data are not available beforehand for:

a.   Two-thirds of our shipments [manufacturer/exporter]

b.   IT products which may take 1-3 months for information to be obtained. [manufacturer/exporter]

c.   Strategic goods (currently under Tier 2)

d.   “Back-to-back” trade, where our imports are our exports

We understand that some information/data may not be available or accurate at the point of AED submission; hence companies would not be penalised if you provide estimated data in the AED, e.g. from the pro forma invoice, and make amendments within 3 days of export. However, you should declare the information as accurately as possible for the initial declaration, so that a proper risk assessment can be conducted. Moreover, your company should review your business processes and improve your information flow and communications with shippers so that information is obtained and subsequently submitted as early as possible. We would also encourage companies to explore leveraging on IT to facilitate information exchange along the supply chain and at same time improve the productivity of the industry. On our part, we will raise the industry’s awareness of the need to push down information quickly.

16.   We are concerned about weekend shipments as some information may be finalised over the weekend. As we only work on weekdays, we would not be able to submit the AED. [sea]

We recognise that this is a concern, and companies may have to make arrangements for weekend shipments or even re-design your internal processes to ensure that declarations (and amendments) are submitted. Companies would not be penalised if you provide estimated data in the AED, e.g. from the pro forma invoice, and make amendments within 3 days of export. However, you should declare the information as accurately as possible for the initial declaration, so that a proper risk assessment can be conducted. We will continue to explore alternative solutions.

FEEDBACK ON COSTS ASSOCIATED WITH THE IMPLEMENTATION OF AED

17.   A few companies said there would not be any additional costs incurred. Most other companies cited the following:

      Recurring monetary costs:

o   Manpower, stationery and utilities

o   TradeNet^®: Additional ID and amendments of declarations

o   Freight forwarders’ and declaring agents’ fees for amendments

o   Penalties / composition sums for late declarations

o   Logistics, e.g. inventory, warehouse storage, holding of container, and switching to express services if shipments miss the flight due to delays in submitting AED

      Once-off monetary costs:

o   Creation/enhancement and maintenance of in-house IT systems

o   Additional PCs for TradeNet^® declarations

      Impact on revenue and productivity:

o   Decreased efficiency and delayed shipments

o   Inaccurate entries for sales and revenue

We acknowledge that there will be different impacts depending on individual companies’ visibility of information relating to your trade supply chain. Companies should improve your information flow and communications with your stakeholders to ensure that information is obtained and subsequently submitted as early as possible, including the possibility of automating this information exchange. We intend to implement AED with minimal impact to trade.

Click to view the previous Advanced Export Declaration Public Consultation webpage.