Security Lodgement

Declaring Entities, or their appointed Declaring Agents, are required to furnish security for various scenarios, such as:

  • Temporary importation of goods for approved purposes
  • Movements involving dutiable goods not under temporary import 
  • Operation of licensed premises such as licensed warehouses and excise factories
  • Compliance with the regulatory requirements of Singapore Customs
  • Revenue protection purposes

Singapore Customs may also require security to be furnished for situations not mentioned above, or vary the security amount on a case-by-case assessment. 

With effect from 1 Apr 2016, new security requirements will be imposed on liquor and tobacco products (see circular for more information).

What is the Amount of Security Required?

The amount of security required for a TradeNet permit application is dependent on the movement type and goods type:

Temporary Importation of Goods for Approved Purposes

 
Movement Type
 Goods Type
 Dutiable Goods[1] Non-Dutiable Goods 
Inward Movement
 GST Registered Entity  Non-GST Registered Entity    GST Registered Entity Non-GST Registered Entity
 Motor Vehicles  30% of potential duty and GST  50% of potential duty and GST Selected Goods  50% of potential GST  100% of potential GST
Non-Selected Goods  30% of potential GST  50% of potential GST

Movements Involving Dutiable Goods not under Temporary Import

Movement Type
Dutiable Goods[1]
Inward Movement
  • Import of Goods for Destruction
  • Re-import of Shut-out Goods
  • Import of Goods Granted Duty Exemption
  • Import of Goods for Re-Export (for Re-Export of Liquor and Tobacco Products by Road, see Outward Movement by Road)
  • 50% of the potential duty for liquor and tobacco products

  • 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
  • Release of Goods for Local Consumption
  • 100% of the duty payment
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)

  • 50% of the potential duty for liquor and tobacco products

Outward Movement by Road (With Effect from 1 Apr 2016)

  • Import of Goods for Re-Export by Road[2]
  • Transhipment of Goods under “Through[3] or “Non-Through[4] Bill of Lading or Airway Bill through Customs Territory with Outward Movement by Road
  • Export of Goods from Licensed Premises by Road[2]

For liquor and tobacco products, the highest of:

  • Average weekly potential duty involved in outward movement of such goods by road[5]; or  
  • 50% of the potential duty; or
  • $10,000

[1] List of Dutiable Goods

[2]Only the exporter's security can be used to apply for the TradeNet permit (see Circular No. 01/2016 for more information).

[3]Only the Declaring Agent's security can be used to apply for the TradeNet permit (see Circular No. 01/2016 for more information).

[4]Only the importer's security can be used to apply for the TradeNet permit (see Circular No. 01/2016 for more information).

[5] 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 TradeNet 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 TradeNet 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 TradeNet 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.

How to Lodge Security?

You can lodge the security in the form of a Banker’s Guarantee or an Insurance Bond.

Download the Security Application Form and bring it to your bank, finance company or insurance company for lodgement of the Banker's Guarantee/Insurance Bond

Further points to note:

  • Except for securities that are lodged for an ad-hoc basis (e.g. temporary importation of an ad-hoc shipment), the security lodged should be valid for at least one year, with the expiry date set to 31 December of the following year.
  • The bank, finance company or insurance company must be registered with the Monetary Authority of Singapore (MAS).
  • The insurance company must be a Direct Insurer (General) or Direct Insurer (Composite) listed under MAS’s Financial Institutions Directory.

Submit the original security to:

Registration Unit

Procedures & Systems Branch
Singapore Customs
55 Newton Road #07-02
Revenue House
Singapore 307987

Upon receipt of the security, Singapore Customs will register the security within 3 working days. Upon successful registration, we will send a notification by email or fax to the Primary Contact (or the Secondary Contact should transmission to your Primary Contact fails) registered in your Customs Account. Please ensure that the particulars of the Primary Contact and Secondary Contact registered in your Customs Account are updated for them to receive the notifications.

Renewal of Security

If you have lodged a security with Singapore Customs expiring in the month of December, Singapore Customs will inform you of the recommended security amount to lodge for the following year in November of the current year.

The recommended security amount is computed based on your entity’s past transaction and its TradeFIRST (TF) band, Declaring Agent (DA) band and your compliance records with Singapore Customs. Entities that have been accorded a better TF band or DA band, or have maintained exemplary compliance records can expect lower or waiver of security requirements for most types of transactions.

If your security does not expire in the month of December, you will be notified on the expiry of your security two months before the expiry date. 

How to Extend Security?

You may lodge a new security using the Security Application Form or extend the expiry date of your existing security using the Security Extension Form. You are encouraged to submit your new security or security extension to Customs at least two weeks before the expiry of your existing security to allow sufficient time for processing and amendments in case of discrepancies.

How to Withdraw Security?

You may write in to Customs to withdraw a valid security. We will return the original security once we have confirmed that you do not have any outstanding matters with us.

Expired Security

Customs will retain all expired securities. All liabilities of the bank, finance company or insurance company will be fully discharged after the claim period as stated in the security.

Forfeiture of Security

Entities, in particular declaring agents, should exercise due diligence before allowing their security to be used for TradeNet permit applications by another party. Customs may forfeit the security if there is non-compliance with any regulatory requirements.

Authorise a Declaring Agent

You may authorise your Declaring Agent to use your security for your TradeNet permit applications.

Learn more about authorising Declaring Agents.  

After you have authorised your Declaring Agent to use your security, your authorised Declaring Agent may select "I" (for importer/exporter) under the "BG Indicator" field to make use of your security for your TradeNet permit applications. If the "BG Indicator" field is "D" or left blank, the Declaring Agent's security will be used.