Trade Regulations and Standards

Trade Barriers
Singapore has very few trade barriers. There are restrictions in a few sectors, including legal services, banking services, some telecommunications services, professional engineering services and trade in tobacco products. However, the Government is slowly allowing more freedom for market forces in the economy, as can be seen in its plan to privatize the telecommunications and public utilities industries. It has also announced that it will relax its regulations on professional engineering services. In the area of intellectual property rights, the Singapore Government does have laws to protect against piracy and copyright infringement, but it relies on the private sector to take the lead against transgressors. In general, Singapore maintains one of the most liberal trading regimes in the world.

Customs Valuations In Singapore, valuation for Customs purposes is based on the Brussels Definition of Value (BDV). The basic principle of the BDV is that dutiable value is the normal price or import price of goods at the port or place of importation. It pre-supposes that the sale has taken place in the open market between an independent buyer and seller.

Where goods are dutiable, ad valorem or specific rates may be applied. An ad valorem rate, which is the most commonly applied, is a percentage of the assessed value of the imported goods. A specific rate is a particular amount per unit of weight or other quantity.

Cost, insurance, freight, handling charges and all other charges incidental to the sale and delivery of the goods are taken into account when duty is assessed.

Exporters are required to ensure that the declared values of goods for Customs purposes are correct. If the goods have been undervalued, the Customs and Excise Department will increase the values declared. Severe penalties may be imposed on traders attempting to evade duty.

Import Licenses
Companies must make an inward declaration for all goods imported into Singapore. Most goods can be imported freely without licenses. The import of a few items such as lighters in the shape of pistols or revolvers, toy currency notes, toy coins and fire crackers is prohibited. Generally, the import of goods which the government says pose a threat to health, security, safety and social decency are controlled. Import licenses are required for pharmaceuticals, hazardous chemicals, films, arms and ammunition. Companies that want to import controlled items into Singapore must apply for licenses from the appropriate government agencies.

Export Controls
Companies must make an outward declaration to export or re-export their goods out of Singapore. Except for selected items, there are very few controls on exports of goods from Singapore. Quantitative restrictions exist for certain textiles and garments to Canada, EU countries and the U.S. Items such as rubber, timber, granite and chlorofluorocarbons are subject to export control and licensing. Items under export control must be endorsed or licensed by the appropriate government agencies before they can be exported.

Import/Export Documentation
When goods enter or leave Singapore, companies must submit their inward or outward declarations to the Controller of Imports & Exports. Singapore has introduced an electronic trade documentation system called Tradenet to facilitate import/export documentation. The system ensures that goods moving into and out of Singapore are processed with minimum delay. Through Tradenet, subscribers can have their import and export declarations processed electronically with government agencies and local as well as overseas trading partners. Companies importing and exporting goods in Singapore need to contact the Trade Development Board (TDB) for a Central Registration Number. Items under import/export control may either require endorsement or license before they can be processed. Companies should not enter into any financial or contractual obligation before the necessary licenses or approvals are obtained.

Temporary Entry
For goods entering Singapore on a temporary basis, companies can apply for an ATA Carnet with the Singapore International Chamber of Commerce. The ATA Carnet serves as a guarantee against payment of import duties/taxes should the temporary admission period be exceeded. Goods imported under a carnet may not be sold and must be re-exported within the temporary admission period. If the items to be imported are subject to controls, companies must obtain endorsement/approvals from the relevant Government agencies before importing the goods into Singapore.

Labeling, Marking Requirements Labels are required on imported food, drugs, liquors, paints and solvents and must specify the country of origin. Repackaged foods must be labeled to show (in English) the appropriate designation of the food content printed in capital letters at least 1/16 inch high; whether foods are compounded, mixed or blended; the minimum quantity stated in metric net weight or measure; the name and address of the manufacturer or seller; and the country of origin.

A description (in English) of the contents of the package may be added to the face of the label provided the additional language is not contrary to, or a modification of, any statement on the label. Pictorial illustrations must not mislead about the true nature or origin of the food. Foods having defined standards must be labeled to conform to those standards and be free from added foreign substances. Packages of food described as "enriched", "fortified", "vitaminized" or in any other way which implies that the article contains added vitamins or minerals must show the quantity of vitamins or minerals added per metric unit. Special labels are required for certain foods, medicines and goods such as edible and non-edible animal fats as well as paints and solvents. Processed foods and pharmaceuticals must be inspected and approved by the Ministry of Health. Electrical goods must be checked by the Public Utilities Board before they can be installed, while paints and solvents are the responsibility of the Chief Inspector of Factories, Ministry of Labor.

Prohibited Imports
Singapore prohibits the import of chewing gum, firecrackers, horns, sirens, silencers, toy coins and currencies and satellite dishes and receivers. A full list of prohibited products can be obtained from the Trade Development Board.

Standards
Singapore uses the metric system. While industrial standards applied in the engineering and construction fields are basically those used by other developed countries, the Productivity and Standards Board (PSB) has developed standards for certain electrical, sanitary and building products. PSB is the national standards and certification authority.

PSB also administers the Good Manufacturing Practice Scheme and the PSB Certification Mark Scheme. They are awarded to manufacturers whose quality assurance systems and products comply with the ISO 9000 series of quality systems or the relevant Singapore standards.

Under the Consumer Protection (Safety Requirements) Regulations of 1991, 17 products (LPG systems, cooking ranges, electric irons, gas cookers, hair dryers, microwave ovens, televisions, video display units, video cassette recorders, table fans, high-fidelity equipment, immersion water heaters, kettles, refrigerators, rice cookers, room air-conditioners, vacuum cleaners and washing machines) which are potentially hazardous to consumers must be registered and declared safe before they can be sold in Singapore. The Consumer Protection Act (CPA) mark is a compulsory stamp of approval given by PSB to ensure that consumers are safe from hazards such as fire, explosion and electrical shock when using these appliances. However, test reports issued by accredited testing laboratories and national certification bodies are recognized by PSB. A list of accredited laboratories and national certification bodies is available from PSB. U.S. suppliers of these products planning to expand sales into Singapore should check with the Consumer Protection Agency and PSB before exporting.

Similarly, telecommunications equipment imported for use in Singapore is subject to "Type-Approval" by the Telecommunication Authority of Singapore.

For the construction industry, the Construction Industry Development Board (CIDB) has introduced the Construction Quality Assessment System (CONQUAS). CONQUAS is an objective method of rating building works. The system examines the contractor's work in three areas: structural (40 points), architectural (50 points) and external works (10 points) based on a 100-point score. The system measures the extent to which a building conforms with the contract specifications. Contractors with high CONQUAS scores are given preferential margins when they tender for public contracts.

Free Trade Zones/Warehouses
Singapore has seven Free Trade Zones (FTZ), six for seaborne cargo and one for air cargo (Singapore Changi Airport), within which a wide range of facilities and services are provided for storage and re-export of dutiable and controlled goods. Goods can be stored within the zones without any customs documentation until they are released in the market. They can also be processed and re-exported with minimum customs formalities. The FTZ's at the port facilitate entr pot trade and promote the handling of transhipment cargo. They offer free 72-hour storage for import/export of conventional and containerized cargo and 14-day free storage for transhipment/re-export cargo.

Within the FTZ, the Port of Singapore Authority (PSA) provides more than two million square meters of covered and open storage space. Outside the FTZ, PSA has 473,000 square meters of covered warehouse space. The PSA operates the Pasir Panjang Distripark, Alexandra Distripark and Keppel Distripark.
 
Special Import Provisions
Dutiable goods are allowed to be imported for repair without payment of duty on condition that they are re-exported within three months of the date of importation. If the goods are not re-exported after the expiration of the given period, duty will become payable. This facility provision is also extended to dutiable goods which are imported for trade exhibitions, fashion shows and displays.

Bona fide trade samples may be imported without payment of duty if they are imported solely:

(A)	For the purpose of soliciting orders for goods to be supplied from abroad; or
(B)	For demonstration in Singapore to enable manufacturers in Singapore to produce such articles to fulfill orders from abroad; or
(C)	By a manufacturer for the purpose of copying, testing or experimenting before he produces such articles in Singapore.

Membership in Free Trade Arrangements
Singapore is a party to the World Trade Organization (WTO), formerly known as the General Agreement on Tariffs and Trade (GATT). Since January 1993, Singapore has participated in the ASEAN Common Effective Preferential Tariff (CEPT) program for the ASEAN Free Trade Area (AFTA). The program involves the application of preferential tariffs to goods of ASEAN origin as defined under the Rules of Origin for CEPT. Under the rules, a product is of ASEAN origin if it is wholly produced or obtained in an ASEAN country. The product can also be deemed to originate from ASEAN Member States if at least 40 percent of its content originates from any member states. The 40 percent local content requirement refers to both single country and cumulative ASEAN content.