Air Store Bond Scheme
What is it?
An air store bond is a designated area licensed by Singapore Customs for storing dutiable goods, namely liquor, with the duty and Goods and Services Tax (GST) suspended. These dutiable goods are meant for supply to the various airlines operating out of Changi Airport terminals. The designated area is also termed as licensed premises.
The licensed premises must be physically demarcated and separated from other areas, while the non-licensed premises may be used for other purposes.
Your company can enjoy improved cash flow under the Air Store Bond Scheme.
How to Qualify?
To qualify for the Air Store Bond Scheme, the company must:
- Be GST-registered with the Inland Revenue Authority of Singapore
- Have a valid Customs Account
- Have good compliance records with Singapore Customs
- Be responsible for the security, accountability and control of the dutiable goods
- Obtain approval from the Changi Airport Group to operate an air store bond
- Undergo TradeFIRST assessment and attain the minimum “Enhanced” Band
An annual licence fee is payable upon issuance of the licence. It is based on the projected potential duty* or the average past monthly duty** of the dutiable goods stored:
|Projected Potential Duty
|S$1 million or less
|More than S$1 million but less than S$10 million
|S$10 million or more
*Projected potential duty refers to the total customs and excise duties of the projected maximum quantity of goods that can be stored at any one time in the intended licensed premises.
**Average past monthly duty refers to the average of the total customs and excise duties of all goods stored in the intended licensed premises on the 1st of each month during the period of 12 months (or, if the premises has been used to store goods for a shorter period, that shorter period) before the date of the application.
Accountability to Singapore Customs
- Accountable for dutiable goods stored in the licensed premises and for the payment of duty and GST on goods not accounted for
- Declare relevant Customs permits through TradeNet for movement of all goods in and out of the licensed premises, and abide by the stipulated permit conditions
- Report to Singapore Customs if there is any goods discrepancy in the licensed premises by the next working day
- Provide assistance to Singapore Customs, including but not limited to manpower and system access for the purpose of any investigation, periodic audit, stock check and supervision operation conducted by Singapore Customs
- Comply with the Customs Act, Customs Regulations, and the licensing Terms & Conditions
Accountability to Other Competent Authorities
- Obtain the necessary approvals from the relevant competent authorities
- Ensure inventory records and supporting documents are properly maintained and updated
Physical Security Control
- Ensure adequate security measures in the licensed premises
- Ensure all entrances and exits are secured when there is no movement of dutiable goods in the licensed premises
- Obtain prior approval from Singapore Customs for any structural alteration to the licensed premises
How to Apply?
Step 1: Complete the TradeFIRST Self-Assessment Checklist
Step 2: Prepare these supporting documents:
- Accounting and Corporate Regulatory Authority BizFile Report
- Audited financial statements for the past 3 years
- One copy of the layout plan. Please indicate the intended licensed premises, entry/exit points and security features such as closed-circuit televisions and alarm systems in the layout plan. The plans must show the address affixed with the company stamp
- Title deed or tenancy agreement
- Other relevant documents
Step 3: Apply online.
For new applications, the Banker’s Guarantee or insurance bond will be based on the projected potential duty. Otherwise, the amount will be based on the average past monthly duty
Once the application is successful, we will contact you to follow up with your application
For further assistance, please call 6251 3027 or email firstname.lastname@example.org
Frequently Asked Questions (FAQs)
1) Where can I find the Harmonized System (HS) codes and duty rates of the dutiable goods?
You can find them here.
2) Can the air store bond operator remove the dutiable goods stored inside the air store bond for local consumption instead of supplying to airlines?
Yes, an air store bond operator may take up Inward Duty and GST Payment permits to remove the dutiable goods from the air store bond for local consumption.
3) Is the licence subject to renewal?
Yes, the renewal of the licence is dependent on:
- Payment of the annual licence fee
- Lodgment of the Banker’s Guarantee or insurance bond, if applicable
- Compliance records with Singapore Customs
- Outcome of the TradeFIRST assessment
4) Is the licence transferable?
The licence is strictly non-transferable. There should be no sub-letting of the air store bond.
5) How do I declare Customs permits?
Customs permits can be declared through TradeNet.
Find out more about Permit Declaration.