What Is The Amount of Security Required?
What is the Amount of Security Required?
Generally, the amount of security required for a permit application is dependent on the movement type and goods type, as well as the declaring entities’ or their appointed declaring agent’s banding under the trade Facilitation & Integrated Risk-based System (TradeFIRST) / Declarant Agent Framework. Declaring entities and declaring agents will be accorded different levels of security requirements ranging from a 100% requirement to a waiver of the security requirement depending on their TradeFIRST and DA banding.
Temporary Importation of Goods under Tax Suspension for approved Purposes
| Movement Type | Goods Type: Dutiable Goods* | Motor Vehicles |
|---|---|---|
| Inward Movement Temporary Import (TI) of Goods for Approved Purposes |
GST Registered Entity | 30% of potential duty and GST |
| Inward Movement Temporary Import (TI) of Goods for Approved Purposes |
Non-GST Registered Entity | 50% of potential duty and GST |
| Movement Type | Goods Type: Non-Dutiable Goods | Selected Goods | Non-Selected Goods |
|---|---|---|---|
| Inward Movement Temporary Import (TI) of Goods for Approved Purposes |
GST Registered Entity | 50% of potential GST | 30% of potential GST |
| Inward Movement Temporary Import (TI) of Goods for Approved Purposes |
Non-GST Registered Entity | 100% of potential GST | 50% of potential GST |
Movements Involving Dutiable Goods under Tax Suspension, not under Temporary Import
| Movement Type | Dutiable Goods* |
|---|---|
| Inward Movement 1. Import of goods for destruction 2. Re-import of shut-out goods 3. Import of goods granted duty exemption 4. Import of goods for re-export ( for re-export of liquor and tobacco products by road, see Outward Movement by Road ) |
a. 50% of the potential duty for liquor and tobacco products b. 10% of the potential duty for motor vehicles |
| Inward Movement Import of goods into licensed warehouse for storage |
50% of the potential duty for liquor and tobacco products |
| Inward Movement Import of goods with Movement Through Customs Territory for Storage in Second or Subsequent FTZ |
10% of the potential duty for motor vehicles |
| Transhipment Movement Transhipment of goods under “Through” or “Non-Through” Bill of Lading or Airway Bill through Customs Territory with Outward Movement by Sea or Air (for Transhipment of goods under “Through” or “Non-Through” Bill of Lading or Airway Bill through Customs Territory with Outward Movement by Road, see Outward Movement by Road ) |
50% of the potential duty for liquor and tobacco products |
| Movement between Licensed Warehouses (With Effect from 1 Apr 2016) Movement of goods from one licensed Warehouse to another licensed warehouse |
50% of the potential duty for liquor and tobacco products |
| Outward Movement by Sea or Air (With Effect from 1 Apr 2016) Export of goods from licensed warehouse by Sea or Air (for Export of goods by Road, see Outward Movement by Road |
50% of the potential duty for liquor and tobacco products |
| Outward Movement by Road (With Effect from 1 Apr 2016) 1. Import of goods for re-export by road** 2. Transhipment of goods under Through* or Non-Through** Bill of Lading or Airway Bill through Customs Territory with Outward Movement by Road 3. Export of goods from licensed Premises by Road ** |
For liquor and tobacco products, the highest of: a. Average weekly potential duty involved in outward movement of such goods by road^; or b. 50% of the potential duty; or c. $10,000 |
** Only the exporter’s security can be used to apply for the customs permit (see Circular No. 01/2016 for more information).
*** Only the Declaring Agent’s security can be used to apply for the customs permit (see Circular No. 01/2016 for more information).
** Only the importer’s security can be used to apply for the customs permit (see Circular No. 01/2016 for more information).
^ Average weekly potential duty is determined by Singapore Customs based on the entity’s past transactions
Security is not required for:
- Transactions where the security amount required for a permit application is S$2,000 or less (see Circular No. 19/2010 for more information)
- All movement of unmanufactured tobacco
- Outward movement of undenatured ethyl alcohol (of alcoholic strength by volume of 80% or more) by road
For first-time security lodgement for permit applications, you are to compute and lodge the amount of security required. The amount of security lodged should be sufficient to meet your operational needs and should include a buffer amount to avoid any possible disruption to your transactions, as a permit application will be rejected if the amount of security required for the permit application exceeds the amount of security lodged with Singapore Customs.
Operation of Licensed Premises and Other Purposes
For first-time security lodgement for the operation of licensed premises and other purposes, Singapore Customs will inform you the amount of security required to be lodged.