Accurately declaring the customs value of goods is essential for businesses engaged in international trade. In Singapore, customs value determines the amount of duties, Goods and Services Tax (GST), and other fees for imported and exported goods. Whether you are importing goods into Singapore or exporting from Singapore, understanding and declaring the correct value is critical to avoid penalties, delays, or audits.
Declarators specialises in preparing accurate and compliant permit declarations for both import and export transactions, helping your business stay fully compliant with Singapore Customs regulations.
What is Customs Value?
The customs value is the total value of goods for customs purposes and generally includes:
- Cost of the goods (purchase price)
- Freight charges incurred to transport the goods
- Insurance charges for shipment
- Other incidental charges such as commissions, royalties, or licensing fees
For imports, Singapore Customs primarily uses the transaction value method, which reflects the CIF value (Cost, Insurance, and Freight) under Incoterms. Exchange rates must be applied to convert any foreign currency components to Singapore Dollars based on the prevailing rate on the date of customs declaration.
For exports, declaring the correct value ensures compliance with statistical reporting, export control regulations, and trade agreements. Similar principles apply, although the focus is on the FOB (Free on Board) value for statistical and customs purposes.
Key Considerations for Imports
When importing goods into Singapore:
- Include all relevant costs: Ensure that freight, insurance, commissions, royalties, and any other charges are included in the declared customs value.
- Use flat rates when applicable: Singapore Customs provides flat rates for freight and insurance if actual costs are not available.
- Apply correct exchange rates: Convert foreign currency values to SGD using Customs-approved rates.
- Transfer pricing adjustments: For related-party transactions, ensure that declared prices reflect the arm’s length principle.
Document support: Include commercial invoices, contracts, and purchase orders to substantiate the declared value.
Key Considerations for Exports
When exporting goods from Singapore:
- Declare accurate FOB or CIF value depending on the transaction terms.
- Ensure compliance with trade control regulations: For controlled goods (e.g., strategic items or chemicals), the declared value supports proper export permits and licensing.
Provide proper documentation: Export permits, invoices, packing lists, and other supporting documents must match the declared customs value.
How Declarators Can Help
At Declarators, we specialise in preparing accurate and compliant permit declarations for both import and export transactions. Our services include:
- Accurate Permit Declarations: Correctly declare customs value, CPC codes, and supporting data for all shipments.
- Compliance with Regulations: Stay up-to-date with Singapore Customs rules for valuation, duties, GST, and controlled goods.
- Use of Flat Rates and Exchange Rates: Apply Singapore Customs-approved flat rates and currency conversions where required.
- Documentation Support: Prepare and organise invoices, contracts, and permits to support customs declarations.
- Coordination with Customs and Authorities: Ensure that permits and declarations are submitted correctly to avoid delays or penalties.
By partnering with Declarators, businesses can streamline international trade processes, reduce compliance risks, and focus on their core operations while leaving customs valuation and permit preparation to the experts.
If you need assistance with customs valuation for imports or exports, contact Declarators today:
🌐 www.declarators.com.sg
📧 group@declarators.com.sg
📞 +65 6385 2155
