SINGAPORE: Singapore is inviting feedback on proposed amendments to the Customs Act.
As well as textual changes following the release of the 2017 Budget earlier this year, amendments would clarify that:
Duty will be collected on goods used or consumed in a Free Trade Zone (FTZ), approved landing place, or transit warehouse. This would be in line with the policy intent to impose goods and services tax (GST) on all goods used and consumed in Singapore’s FTZs, the Government said.
Singapore Customs will be allowed to determine circumstances under which it may re-impose such duties based on the current value of the goods.
Similar to motor vehicles and aircraft, a permit is not required to remove fuel carried in the fuel supply tanks of vessels. Currently, the Customs Act specifies that the removal of fuel carried in the fuel supply tanks of motor vehicles and aircraft does not require a permit, and is silent on the treatment of vessels.
Further, “to ensure that Singapore Customs remains operationally effective in its day-to-day administration of the Act,” the proposed amendments would:
Allow the Director-General of Customs to exempt parties from the submission of the manifest data for vessels, airplanes, or trains arriving in or departing from Singapore;
Extend the current one-year time limit for claimants to submit claims for refunds of duties, taxes, or other charges, to five years in alignment with the GST Act. The one-year time limit does not allow Singapore Customs to refund money overpaid or erroneously collected if a claim is made more than one year after overpayment or erroneous collection; and
Increase the one-year time limit to recover duties, taxes, fees, or other charges to five years, and remove the time limit entirely for the recovery of duties in cases of fraud and willful default, to align with the GST Act and Income Tax Act.
Last, textual changes to legislation will be introduced following the introduction in the 2017 Budget of a volume-based duty of SGD0.10 (USD0.07) per liter of automotive diesel, industrial diesel, and the diesel component of biodiesel. The intention is to shift to a regime that is based on how much fuel is used, in place of annual duties.
To offset the impact of the change, the annual Special Tax on diesel cars and taxis was reduced by SGD100 and SGD850, respectively, and commercial vehicles are to receive three years of road tax rebates to cushion the impact of the reform.
