Industry

Singapore is the free port at the intersection of major shipping routes in Asia. It has an open import policy and approximately 95% of the goods are free to enter Singapore. A special tariff rate policy is applied to alcohol, tobacco (including cigarettes), sugar products and refrigerators. Tariff rates are generally low, and the ad valorem tariff rate for goods is 5%, with the exception of cars, which have a tax rate of 45%.

Since 1994, Singapore has adopted a simplified trade classification method that replaces 5,700 items used in the past with 2,600 items. There is no customs surcharge in Singapore, but an import tax of 3% on goods and services is imposed, which is levied on the tax value (eg production cost, insurance premium, freight and customs). Customs authorities use the Brussels Rules of Value (BDV) to value imported goods. In addition to automobile fuel, the price of imported goods should be the normal price, that is, the price at which the buyers and sellers who are independent of each other trade on the open market when the tax is reserved.

Taxes generally include FOB prices, shipping, insurance, marketing fees (1% are all) and commissions, as well as additional charges incurred during sales and delivery. The ad valorem rate applies to the determination of such prices. If the purchaser and the supplier have a special relationship, the customs raises the invoice price to the price determined by the Brussels pricing principle. Special tariffs on alcohol, tobacco (including cigarettes), eggs and refrigerators are determined by weight, volume and unit of measure. If the tariff rate can be expressed as a special tax or an ad valorem tax (such as fuel for vehicles), the tariff payable should be the higher of the two.