Post-Clearance Audit

A post-clearance audit is a structured examination of a trader’s commercial systems, processes, financial and non-financial records, physical stock and other assets to assess compliance with customs requirements. It is conducted after goods have been released from Customs control.

Audits may take place at the trader’s premises or at Singapore Customs’ premises. They may focus on specific transactions or cover imports and/or exports over a defined period.

The purpose of a post-clearance audit is to verify the accuracy and authenticity of declarations and other returns made to Singapore Customs.

How Companies Are Selected

All traders and declaring agents may be selected for a post-clearance audit.

Selection is carried out in accordance with Singapore Customs’ risk management framework.

What Happens During an Audit

A post-clearance audit generally involves the following steps:

1. Notification or Initial Contact
   
   Singapore Customs may contact the trader (“auditee”) to request documents or to arrange an interview with relevant personnel.
   
   Customs may also conduct unannounced audits at the auditee’s business locations.
   
   Regardless of the audit type, the auditee will be informed of the purpose, scope and requirements of the audit.

2. Interview With Relevant Personnel
   
   During the interview, Singapore Customs officers will seek to understand the auditee’s business model, operations, systems and accounting practices.
   
   Auditees may also clarify questions relating to legislation and procedures administered by Singapore Customs.

3. Verification Against Trade Documents
   
   Customs will verify the accuracy of declarations and/or other returns submitted to Singapore Customs against the relevant trade documents provided by the auditee.
   
   Verification may be conducted at Singapore Customs or at the auditee’s premises.
   
   Examples of relevant trade documents include:

   • TradeNet permits

   • Commercial invoices

   • Packing lists

   • Bills of Lading

   • Air Waybills

   • Certificates of Origin

   • Payment records

   • Product specifications

4. Audit Outcomes
   
   Upon completion of the audit, Singapore Customs will inform the auditee of the findings. Where applicable, compositions or other penalties may be imposed.
   
   Customs will also highlight any errors detected and provide guidance to help the auditee improve compliance.

Duration of Audit

The duration of a post-clearance audit varies depending on:

• The scope of the audit; and

• The level of cooperation and completeness of information provided by the auditee.

Legal Obligations of Auditees

Auditees are required under the relevant laws to provide Singapore Customs with reasonable assistance and cooperation, including:

• Submitting all required trade documents in a timely manner

• Granting access to computers and mobile phones

• Ensuring that all information provided is true and accurate

Traders are also reminded that they must retain documents relating to import, export and transhipment activities for 5 years.

Verification of Customs Officers

Customs officers are required to show identification at the point of contact.

Confidentiality of Company Information

Singapore Customs maintains the confidentiality of information obtained during the audit.

Information provided is used solely to determine whether the company has complied with domestic legislation and will not be shared with other companies.