When goods are sent to an agent of an exporter in the importing country the method of payment adopted is?
GST is imposed on most goods imported into Singapore, regardless whether the importer is GST-registered. However, there are specific reliefs, exemptions for certain goods or special schemes where the GST payable is suspended or deferred. Show
GST will be extended to low-value goods worth $400 or less imported by air or post from 1 Jan 2023. GST on importsGST on imports is generally payable regardless whether the importer is GST-registered. The exceptions are:
Charging GSTImport GST is collected by Singapore Customs. It is charged on the total of:
Calculating CIF value
Please refer to GST: Guide on Imports (PDF, 436KB) for GST reporting requirements, GST on the importation of goods and various related schemes. Exempt importsInvestment precious metals (IPM) imported into Singapore are exempt from import GST. IPM is considered an exempt import and importers do not need to pay GST on importation. However, you must still apply for an Exemption Permit via TradeNet® in order to import IPM. You do not need to report the value of exempt imports of IPM in your GST returns. However, you should maintain relevant documents (e.g. import permit, purchase order, invoice, delivery note) to support such purchases. Please refer to GST: Guide on Exemption of Investment Precious Metals (IPM) (PDF, 389KB) for more information. Claiming GST paid on importsSubject to the conditions for claiming input tax, you are entitled to claim the GST that you have paid to Singapore Customs for your imports. The input tax claims must be supported by import permits that show you as the importer of the goods. If the name of importer was wrongly declared, please refer to mistakes in import declaration for what you should do.
What to declare in your GST returnYou should declare your imports in Box 5 and Box 7 of your GST returns. In Box 5 (Total value of taxable purchases), you should declare the actual value of your imports as reflected in the import permit. If the value reflected in your supplier's invoice is different from the value in your import permit, you must reconcile the two values. For over-declaration or under-declaration of value of import, please refer to mistakes in import declaration for what you should do. In Box 7 (Input tax and refunds claimed), you must fill in the GST amount as reflected in the import permit. Claiming GST on the re-importation of goods for local and GST-registered overseas customersYou may be contracted to supply value-adding activities (for example, testing, repair or assembly) on goods belonging to your local customers (whether GST-registered or not) or GST-registered overseas customers. You may send the goods to an overseas subcontractor to perform part of or all the value-adding activities. When you subsequently re-import the goods into Singapore, you will incur import GST. You are entitled to claim the full GST incurred on the re-importation of such goods as your input tax under section 33B of the GST Act, if certain conditions are satisfied. Please refer to GST: Claiming of GST on re-import of value-added goods (PDF, 565KB), for more details. Relief of GST on importsGoods imported by air or by post (except for dutiable products) are not subject to GST at the point of importation when the CIF value is not more than $400. If the CIF value is more than $400, then the entire sum is subject to GST.
Example
If Investment Precious Metals (IPM) are imported together with other goods by air or by post, the value of the IPM should be disregarded when determining whether the value of your import exceeds the import relief threshold of $400. From 1 Jan 2023, GST may be charged on low-value goods at the point of sale by the GST-registered suppliers under the Overseas Vendor Registration regime. For more information, please refer to the e-Tax Guide
GST: Taxing imported low-value goods by way of the overseas vendor registration regime (First Edition) (PDF, 486KB). Temporary importsYou can apply to Singapore Customs for GST relief on imports, subject to certain conditions, if the goods (other than liquor and tobacco) are temporarily imported for repair, modification, treatment or other approved purposes for up to six months. For more information, please visit Singapore Customs' webpage on temporary importation or contact Singapore Customs at (+65) 6355 2000. Suspension of GST on importsThe suspension of GST on imports is available for a number of schemes and also in a number of situations. GST suspension schemesYou can import goods without paying GST if you are under the following schemes:
Major Exporter Scheme (MES)MES helps alleviate the cash flow of businesses that import and export goods substantially. If you are under the MES, you are allowed to import non-dutiable goods with GST suspended. You can also enjoy GST suspension on goods removed from a Zero GST (ZG) / Licensed warehouse. Import GST is only payable when the goods are removed from the approved warehouses for local consumption. You can only use the MES for goods that are owned by you or your overseas principal [where you act as a section 33(2) agent or section 33A agent]. You can also use your MES status to re-import non-dutiable goods belonging to your local customer or GST-registered overseas customer, which you have previously sent overseas for value-adding activities, if the conditions under section 33B of the GST Act are satisfied. For more information on the scheme and how to report goods imported under the scheme in your GST return, please refer to the page on Major Exporter Scheme.
Approved Third Party Logistics Company (3PL) SchemeThe aim of the Approved 3PL Scheme is to help enhance the competitiveness of logistics companies providing logistics management services for overseas principals who use Singapore as a logistics hub. If you are under the Approved 3PL Scheme, you are allowed to import goods with GST suspended. You can also enjoy GST suspension on goods removed from approved warehouses. For more information on the scheme and how to report goods imported under the Scheme in your GST return, please refer to the page on Approved Third Party Logistics Company Scheme.
Approved Contract Manufacturer and Trader (ACMT) SchemeIf you are approved as an ACMT contract manufacturer under the ACMT Scheme, you can enjoy import GST suspension for your own goods, goods belonging to an overseas person in your capacity as a section 33(2) or 33A agent, as well as goods consigned to you by your overseas client on which value-adding activities are performed under the ACMT scheme. From 1 Jan 2015, you can also use your ACMT contract manufacturer status to re-import non-dutiable goods belonging to your local customer or GST-registered overseas customer, which you have previously sent overseas for value-adding activities, if the conditions under section 33B of the GST Act are satisfied. For more information on the scheme and how to report goods imported under the scheme, please refer to GST: Approved Contract Manufacturer and Trader Scheme (PDF, 1091KB).
Approved Refiner and Consolidator Scheme (ARCS)If you are an Approved Refiner, you can enjoy import GST suspension for your own goods, goods belonging to an overseas person in your capacity as a section 33(2) or 33A agent, as well as goods consigned to you by your overseas customer for refining into investment precious metals (IPM) or precious metals. You can also use your ARCS status to re-import non-dutiable goods belonging to your local customer or GST-registered overseas customer, which you have previously sent overseas for value-adding activities, if the conditions under section 33B of the GST Act are satisfied. If you are an Approved Consolidator, you can enjoy import GST suspension for your own goods or goods consigned to you by an overseas customer, for the purpose of refining into IPM or precious metals. For more information on the scheme and how to report goods imported under the scheme, please refer to GST: Approved Refiner and Consolidator Scheme (PDF, 881KB).
Import GST Deferment Scheme (IGDS)For more information, please refer to the page on Import GST Deferment Scheme. Other GST suspension situationsYou can also import goods without paying GST in the following situations:
Free Trade Zones and transhipmentsFree Trade Zones (FTZs) are designated areas in Singapore where the payment of duties and taxes (e.g. GST) are suspended when the goods arrived in Singapore. You do not need to declare them as your taxable purchases in your GST return until the goods cross the duty point and enter customs territory. For more information, please visit Singapore Customs' webpages on import and export procedures. Importing on behalf of an overseas principal [section 33(2) and 33A agents]Section 33(2) agentYou may import and supply goods in Singapore on behalf of an overseas person (who is either not GST-registered or is GST-registered under the overseas vendor registration (OVR) pay-only regime) as a section 33(2) agent. For GST purposes:
You must be able to track the goods and ensure that all goods imported in the capacity of a section 33(2) agent are supplied. This is so even when there is a change in the nature and form of the goods. Please refer to GST: Guide on Imports (PDF, 436KB) for more information.
What to declare in your GST return
Section 33A agentIf you import goods belonging to an overseas person and then export the goods (without further supply of the goods), you may claim the GST paid at the time of importing, on behalf of the overseas person as a section 33A agent, if certain conditions are met. Please refer to GST: Guide on Imports (PDF, 436KB) for information on the requirements for a section 33A agent. Maintaining records as an agentAs an agent, you must maintain sufficient documentary records and evidence for the import and supply of goods made on behalf of the overseas principal. You must:
If you are under any import GST suspension scheme (E.g. Major Exporter Scheme (MES))You can use your scheme status to import non-dutiable goods belonging to your overseas principal either for sale in Singapore or to re-export on behalf of the overseas principal. GST will be suspended at the point of import of the goods. This applies to any import GST suspension scheme such as the Major Exporter Scheme, Approved Third Party Logistics Company Scheme, Approved Contract Manufacturer & Trader Scheme, Approved Import GST Suspension Scheme and Approved Refiner & Consolidator Scheme. Mistakes in import declarationsInstructions on what you should do when you make mistakes on import declarations, such as over-declaring or under-declaring the value of your imports, are listed below.
Over-declared value of importsIf you over-declared the value of imports and overpaid GST to Singapore Customs, you should declare in your GST return (F5):
Over-/ under-declaration of value on ME permitBusinesses under the Major Exporter Scheme (MES) may obtain ME permits to import goods into Singapore. GST on the imports will then be suspended. If you have over-/ under-declared the value of imports in your ME permit, you do not need to cancel your ME permit. You should declare in your GST return (F5):
Over-declaration of value or quantity on exemption permitIf you have over-declared the value or quantity of IPM imports on your exemption permit, you should send an email to Singapore Customs at [email protected] to inform them of the mistake.
Under-declared value of importsIf you have under-declared the value of imports and under-paid GST, you need to pay the additional GST to Singapore Customs by obtaining a short payment permit. The short payment permit acts as documentary evidence for your input tax claim. You should declare in your GST return (F5):
Under-declaration of value or quantity on exemption permitFor example, if you imported 100 IPM coins but wrongly declared 80 coins on your first permit, you should obtain another permit for the shortfall of 20 coins. No adjustment to your GST return (F5) is required.
Wrong importer's name on import permitFor more information, please visit Singapore Customs' website or contact Singapore Customs at (+65) 6355 2000. What is payment method in international trade?There are five primary methods of payment in international trade that range from most to least secure: cash in advance, letter of credit, documentary collection or draft, open account and consignment. Of course, the most secure method for the exporter is the least secure for the importer and vice versa.
What are the four methods of payment?Payments. Cash (bills and change): Cash is one of the most common ways to pay for purchases. ... . Personal Cheque (US check): These are ordered through the buyer's account. ... . Debit Card: Paying with a debit card takes the money directly out of the buyer's account. ... . Credit Card: Credit cards look like debit cards.. What is an import payment?Advance import payment is a pre-payment method in which, an importer makes the payment for the items to be imported in advance prior to the shipment of goods. The importer benefits from timely and accurate processing and remittances towards advance payment for imports.
Which payment method is best for exporters?Cash in Advance
The cash in advance method is the safest for exporters because they are securely paid before goods are shipped and ownership is transferred. Typically payments are made by wire transfers or credit cards.
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