Zero-GST Warehouse Scheme in Singapore

Roger Pay
Jun 2
19 min read

Singapore's Zero-GST Warehouse Scheme

The Zero-GST (Goods and Services Tax) Warehouse Scheme (ZGS) in Singapore is a key initiative by Singapore Customs designed to enhance Singapore's position as a global trading and logistics hub. It allows approved companies to store imported, non-dutiable goods in a designated, licensed warehouse without having to pay GST upfront.

Here's a breakdown of the scheme:

Purpose and How it Works:

GST Suspension: The primary benefit of the ZGS is the suspension of Goods and Services Tax (GST) on imported non-dutiable goods when they are moved into a Zero-GST warehouse. This means businesses don't have to pay GST at the point of import.
GST Payment Trigger: GST only becomes payable when these goods are removed from the warehouse for local consumption or sale within Singapore's domestic market.
Zero-rated for Export: If the goods are removed from the ZGS warehouse for export, the supply is zero-rated (0% GST), provided the required export evidence is maintained.
Transfers between ZGS Warehouses: No GST is payable when goods are transferred between approved ZGS warehouses.
In-warehouse Sales: Supplies of goods within a ZGS warehouse (where ownership changes but the goods remain in the warehouse) are generally out-of-scope for GST, meaning no GST is charged or needs to be reported.

Benefits for Businesses:

Improved Cash Flow: This is the most significant benefit. By suspending GST on imports, businesses avoid tying up significant capital in tax payments, especially for goods that are primarily for re-export or regional distribution. This freed-up cash flow can be used for other critical business operations.
Reduced Business Costs: Lowering upfront tax payments and administrative burden contributes to overall cost reduction.
Enhanced Competitiveness: Singapore's position as a logistics and distribution hub is strengthened, making it more attractive for international trade.
Flexibility in Inventory Management: Businesses can store goods for extended periods without incurring GST, which is beneficial for managing fluctuating demand or seasonal products.
Streamlined Operations: The scheme simplifies customs procedures for businesses involved in re-export or regional distribution.
Security and Compliance: ZGS warehouses have strict security measures and adherence to customs regulations, ensuring the safety and compliance of stored goods.
Value-added Services: Many ZGS warehouses offer value-added services like repackaging, labeling, and distribution, further streamlining supply chain operations.

Eligibility Criteria:

To qualify for the Zero-GST Warehouse Scheme, a company typically needs to meet the following criteria:

GST-Registered: Be a GST-registered trader with the Inland Revenue Authority of Singapore (IRAS).
Customs Account: Have a valid Customs Account with Singapore Customs.
Good Compliance Record: Possess good compliance and payment records with both Singapore Customs and IRAS.
Designated Premises: The premises designated as the Zero-GST area must be a storage-based facility with adequate security measures. The company must have legal authority and control over the premises.
Good Record-Keeping: Maintain good stock record-keeping and warehouse procedures that ensure the accountability of goods.
TradeFIRST Assessment: Undergo a TradeFIRST assessment by Singapore Customs and meet all mandatory criteria, achieving the minimum band required for the specific ZGS license type (Type I, Type II, or Type III).
Accountability: Be responsible for the security, accountability, and control of the goods stored.
Permit Declaration: Declare relevant Customs permits through TradeNet for the movement of all goods in and out of the licensed premises and abide by stipulated permit conditions.
Assistance to Customs: Provide assistance to Singapore Customs for any investigation, audit, stock check, or supervision.
Compliance: Comply with the GST Act, GST (General) Regulations, and the licensing Terms & Conditions.
Other Approvals: Obtain necessary approvals from relevant Competent Authorities for controlled goods (e.g., Dangerous Goods).

TradeFIRST Self-Assessment Checklist

The TradeFIRST Self-Assessment Checklist is a critical document for any company in Singapore looking to apply for a Zero-GST (ZGS) Warehouse license or other trade facilitation schemes offered by Singapore Customs. It serves as a comprehensive guide for companies to evaluate their own capabilities and readiness against Customs' criteria before submitting an official application.

Purpose of the TradeFIRST Self-Assessment Checklist:

Transparency and Clarity: It provides a clear and detailed overview of all the criteria Singapore Customs uses to assess a company's profile, procedures, security, inventory management, and compliance. This transparency helps companies understand what is expected of them.
Self-Evaluation and Preparation: By going through the checklist, companies can identify their strengths and, more importantly, their weaknesses. This allows them to proactively strengthen any deficient areas (e.g., improve security measures, enhance record-keeping systems, or update internal processes) before engaging Customs for the formal assessment. This preparation can significantly improve their chances of qualifying for a higher TradeFIRST band and thereby more Customs facilitations.
Determining Eligibility: The checklist helps a company determine if it meets the mandatory criteria for the specific scheme (like ZGS) it intends to apply for, and which TradeFIRST band (Standard, Intermediate, Enhanced, Premium) it might qualify for. The ZGS license types (I, II, III) are directly linked to these TradeFIRST bands.
Streamlined Application Process: A well-completed self-assessment, supported by proper documentation, can expedite the actual assessment process by Singapore Customs.

Key Sections of the TradeFIRST Assessment Framework (reflected in the checklist):

The TradeFIRST framework and its checklist are typically structured around six key areas, though the exact wording and sub-criteria may be updated periodically:

Company Profile:
- Corporate policies and management commitment to compliance.
- Financial background and solvency.
- Business activities and nature of trade.
Procedures and Processes:
- Documented Standard Operating Procedures (SOPs) for key operations.
- Management of information and records, including data integrity.
- Management of personnel, including hiring practices, employee identification, and training on Customs requirements and security awareness.
Security: This is a very extensive section, covering:
- Premises Security & Access Control: Physical security features (fencing, lighting, CCTV, alarms), control over entry/exit points, and access control systems.
- Cargo, Containers, and Conveyance Security: Procedures for securing cargo, containers, and vehicles to prevent tampering or unauthorized access.
- Business Partnering and Customer Screening: Procedures for vetting business partners, customers, and service providers (e.g., freight forwarders, third-party logistics providers). This is particularly relevant for "listed goods."
- Security Risk Assessment and Incident Management: Having a documented process for identifying security threats, assessing risks, and managing security incidents.
- Business Continuity Plan (BCP): A documented plan to ensure critical business functions can continue during and after disruptions (e.g., IT system failure, natural disaster, security breach).
Inventory Management:
- Capability of the inventory system to accurately track and trace the movement of goods (inward, internal transfers, outward).
- Ability to flag out discrepancies (e.g., shortages, overages).
- Procedures for conducting stock takes and reconciling discrepancies.
- Ability to differentiate between various types of goods (e.g., GST-suspended vs. local goods).
Other Scheme-Specific Requirements:
- Criteria that are specific to the particular Customs scheme being applied for (e.g., the 80% re-export requirement for ZGS Type I, or specific controls for Strategic Trade Scheme Bulk Permits).
Compliance:
- The company's overall compliance record with Customs laws and regulations.
- Procedures for internal audits and self-reviews to ensure ongoing compliance.
- Promptness in addressing compliance issues and reporting lapses to Customs.

How to Access and Use the Checklist:

Download: The TradeFIRST Self-Assessment Checklist is typically available for download from the Singapore Customs website under the "TradeFIRST" section within "Customs' Schemes, Licences & Framework." You should always seek the latest version directly from their official site. It's often in an Excel format, allowing you to fill it in digitally.
Detailed Explanatory Notes: The checklist often comes with detailed explanatory notes for each criterion. It's crucial to read these notes carefully to understand the exact requirements.
Honest Assessment: Conduct a realistic and honest self-assessment. Don't simply tick "Yes" if you don't fully meet a criterion. Identify areas where "No" is the appropriate answer and then work on improving those areas.
Supporting Documents: The checklist will ask you to indicate what supporting documents you have for each criterion. While you don't necessarily submit all supporting documents with the initial checklist, you must have them ready for the on-site assessment. For mandatory criteria, you might be required to submit them upfront.
Internal Collaboration: This assessment often requires input from various departments within your company, including logistics, operations, finance, IT, human resources, and security.

By diligently completing the TradeFIRST Self-Assessment Checklist, companies can not only prepare for the ZGS license application but also enhance their overall supply chain security and compliance posture, which ultimately benefits their business operations.

Types of ZGS Licenses:

There are three types of ZGS licenses (Type I, Type II, and Type III), which offer increasing levels of facilitation and typically require stricter compliance and internal controls. For example, a Type I license generally requires 80% of imports to be re-exported, while Type II and III do not have this specific export requirement.

Benefits for the 3 zero-GST warehouse licence types

The Zero-GST (Goods and Services Tax) Warehouse Scheme (ZGS) in Singapore offers three types of licenses (Type I, Type II, and Type III), each providing increasing levels of flexibility and benefits, alongside stricter requirements for internal controls and compliance. The core benefit of GST suspension on imported non-dutiable goods applies to all types, but the additional facilitations differ.

Here's a breakdown of the benefits for each ZGS license type:

Common Benefits for All ZGS License Types:

GST Suspension on Imports: This is the fundamental benefit. Imported non-dutiable goods can be moved into the ZGS warehouse without upfront payment of GST. GST is only payable when the goods are removed for local consumption.
Zero-Rating for Exports: Goods removed from the ZGS warehouse for export are zero-rated for GST, meaning no GST is charged.
GST Not Payable for Transfers between ZGS Warehouses: Moving goods from one ZGS warehouse to another does not trigger GST payment.
Out-of-Scope for In-Warehouse Sales: Supplies (changes of ownership) of goods that remain within the ZGS warehouse are generally out-of-scope for GST, simplifying transactions and avoiding GST payment on multiple transfers within the warehouse.
Improved Cash Flow: By deferring GST payment, businesses free up capital that would otherwise be tied up in tax, significantly improving cash flow.
Reduced Business Costs: Lowering upfront tax payments and administrative overhead contributes to overall cost reduction.
Enhanced Competitiveness: Supports Singapore's role as a regional distribution hub by facilitating international trade.
Indefinite Storage: Goods can be stored in the ZGS warehouse for an indefinite period with GST suspended.

Specific Benefits by ZGS License Type:

1. Zero-GST Warehouse Type I:

Primary Focus: This type is typically for importers and service warehouse operators who predominantly store imported goods for regional/international distribution (re-export). It's designed to align with the historical "Bonded Warehouse Scheme."
80% Export Requirement: Type I licensees typically have a requirement to re-export at least 80% of their imports. This is a key distinguishing factor.
Customs-Assigned Lot Number: Goods often need to be tracked using a Customs-assigned lot number, requiring careful record-keeping.
Demarcated Storage Area: The licensed area often requires clear physical demarcation to distinguish it from non-ZGS areas.
Single Location per License: Generally, a Type I license covers one specific warehouse location.
TradeFIRST Band: Requires qualification for the "Standard" band under the TradeFIRST framework.

Benefits Summary for Type I: Offers the fundamental GST suspension benefits, primarily for re-exporters, with a focus on clear accountability through lot numbers and demarcated areas.

2. Zero-GST Warehouse Type II:

Broader Scope: This type is designed for companies that may have a mix of re-export and local distribution.
No 80% Export Requirement: Unlike Type I, Type II licensees do not have a mandatory 80% export requirement. This provides greater flexibility for businesses serving both international and domestic markets.
No Customs-Assigned Lot Number: Generally, there is no requirement for Customs-assigned lot numbers, offering more flexibility in inventory management.
No Demarcated Storage Area Requirement: The physical demarcation requirement may be relaxed for Type II, allowing for better optimization of warehouse space.
Single Location per License: Similar to Type I, a Type II license generally covers one specific warehouse location.
TradeFIRST Band: Requires qualification for the "Intermediate" band under the TradeFIRST framework, indicating a higher level of internal control and compliance than Type I.

Benefits Summary for Type II: Offers increased flexibility compared to Type I by removing the export ratio and physical demarcation requirements, making it suitable for businesses with significant local sales alongside re-exports.

3. Zero-GST Warehouse Type III:

Highest Level of Facilitation: This is the most flexible and advanced ZGS license type, designed for companies with robust internal controls and sophisticated inventory management systems.
No 80% Export Requirement: Like Type II, there is no mandatory export requirement.
No Customs-Assigned Lot Number: No requirement for Customs-assigned lot numbers.
No Demarcated Storage Area Requirement: No requirement for physical demarcation.
Multiple Locations under a Single License: A significant benefit of Type III is the ability to operate multiple ZGS warehouses under a single license. This is extremely beneficial for large logistics providers or companies with several distribution centers.
Consolidated GST Payment Declaration (Optional): Qualified Type III operators may have the option to make consolidated permit declarations and GST payments on a weekly basis, rather than individual declarations for each consignment. This significantly reduces administrative burden for high-volume operations.
TradeFIRST Band: Requires qualification for the "Enhanced" or "Premium" bands under the TradeFIRST framework, signifying the highest levels of internal control, compliance, and risk management.

Benefits Summary for Type III: Offers the greatest operational flexibility, including managing multiple locations under one license and potentially making consolidated declarations, making it ideal for large-scale, highly compliant businesses with complex supply chains.

In essence, as you move from Type I to Type III, the ZGS scheme offers greater operational freedom and reduced administrative burden, reflecting a higher level of trust from Singapore Customs based on the company's compliance record and internal control capabilities.

Key Responsibilities

Operating a Zero-GST (ZGS) Warehouse in Singapore comes with significant benefits, but it also entails a clear set of responsibilities that licensees must adhere to. These responsibilities are crucial for maintaining the integrity of the scheme, ensuring compliance with customs regulations, and preventing misuse.

Here are the key responsibilities of Zero-GST Warehouse licensees, as outlined by Singapore Customs:

1. Accountability to Singapore Customs:

Accountability for Goods and GST: You are fully accountable for all goods stored in your licensed premises and for the payment of GST on any goods that cannot be accounted for (e.g., due to unexplained shortages).
Permit Declaration: You must declare relevant Customs permits through TradeNet for the movement of all goods (inward and outward) into and out of your licensed premises. You must also abide by all stipulated permit conditions.
Discrepancy Reporting: Any discrepancies in the licensed premises (e.g., stock shortages, damage, or unauthorized movements) must be reported to Singapore Customs by the next working day.
Assistance to Customs: You must provide full assistance to Singapore Customs for any official activity, including:
- Investigations
- Periodic audits
- Stock checks
- Supervision operations
- This assistance includes providing manpower, system access, and any requested documentation.
Compliance with Laws and Regulations: You must comply with the GST Act, GST (General) Regulations, and all specific terms and conditions of your ZGS license.
Structural Alterations: Obtain prior approval from Singapore Customs for any structural alterations to your licensed premises that might affect security or control.

2. Inventory Control and Record-Keeping:

Accurate Inventory Records: Ensure that all inventory records and supporting documents are properly maintained, updated, and readily accessible for inspection. This includes details of goods received, stored, and removed.
Traceability: Your inventory system must have robust "track and trace" capabilities to monitor stock movements, identify discrepancies, and provide clear audit trails.
Differentiation of Goods: Your system must be capable of differentiating between imported GST-suspended goods and any locally-acquired goods (which cannot enjoy GST suspension in a ZGS area) stored in the same warehouse premises, and identify their exact locations.
Periodic Stock Counts: Conduct internal periodic stock counts of ZGS goods and maintain detailed documentary records of these counts.
Customs-Assigned Lot Numbers (Type I): For Type I licensees, goods may need to be stored and identified using Customs-assigned lot numbers in permits, requiring specific storage and tracking methods.

3. Physical Security Control:

Adequate Security Measures: Ensure robust physical security measures are in place within the licensed premises to safeguard goods and prevent unauthorized access. This includes CCTV systems, access controls, alarm systems, and other security features.
Secure Entrances/Exits: All entrances and exits to the licensed premises must be secured when there is no movement of goods.
Premises Control: The licensee must have legal authority and control over the premises, including the right to install or alter security features as required by Singapore Customs.

4. Accountability to Other Competent Authorities:

Other Regulatory Approvals: Obtain all necessary approvals from other relevant Competent Authorities for the storage of controlled goods (e.g., Dangerous Goods, Strategic Goods, pharmaceuticals, food products), in addition to Customs approval.

5. Specific Responsibilities for "Listed Goods" (If Applicable):

If you store "listed goods" (e.g., strategic goods, precious metals/stones):

Written Approval: You must have explicit written approval from Singapore Customs to store these goods.
KYC/CDD & Beneficial Ownership: Obtain, maintain, and regularly update information on the identity of the person(s) with control over the listed goods and their ultimate beneficial owners.
Customer Screening: Conduct and maintain records of screening for customers depositing listed goods, the controlling parties, and beneficial owners.
Suspicious Transaction Reports (STRs): Be vigilant for "red flag indicators" and have a legal obligation to file Suspicious Transaction Reports (STRs) with the Suspicious Transaction Reporting Office (STRO) if you have reasonable grounds to suspect criminal activity.

In summary, being a ZGS licensee means acting as an extension of Singapore Customs' control, upholding high standards of security, record-keeping, and compliance to ensure that the privilege of GST suspension is not abused. Regular audits and checks by Singapore Customs are part of the ongoing monitoring to ensure these responsibilities are met.

Storage of Listed Goods

The storage of "listed goods" within a Zero-GST (ZGS) Warehouse in Singapore involves specific requirements and approvals from Singapore Customs, beyond the general ZGS scheme conditions.

What are "Listed Goods"?

In the context of Singapore Customs, "listed goods" (sometimes referred to as controlled goods or strategic goods) are items that are subject to specific controls due to their nature, potential use, or international obligations. This is often to mitigate risks such as money laundering, terrorism financing, proliferation of weapons of mass destruction, or to manage trade in sensitive items.

While Singapore Customs doesn't typically publish a single, exhaustive "list of listed goods" for ZGS in the same way they do for prohibited or dutiable goods, the term generally refers to items that fall under various regulatory frameworks, such as:

Strategic Goods: Goods that can be used for both civilian and military purposes (dual-use goods), or military items themselves. These are controlled under the Strategic Goods (Control) Act.
Precursor Chemicals: Chemicals that can be used in the illicit manufacture of controlled drugs or chemical weapons.
Precious Metals and Stones: Gold, silver, platinum, palladium, diamonds, rubies, sapphires, emeralds, and other valuable items, especially when their trade might involve large sums of money.
Antiques, Art, and Collector's Items: High-value items that can also be susceptible to illicit trade.

Specific Requirements for Storing Listed Goods in a ZGS Warehouse:

With effect from 1 January 2018, Singapore Customs implemented enhanced measures to address money laundering and terrorism financing risks associated with the storage of "listed goods" in ZGS warehouses.

If a ZGS licensee wishes to store listed goods, they must seek Singapore Customs' approval in writing. Beyond this initial approval, licensees storing listed goods are subject to additional stringent requirements:

Written Approval: You cannot store listed goods in your ZGS warehouse without prior written approval from Singapore Customs.
TradeFIRST Band and License Type: To obtain approval for storing listed goods, a ZGS licensee typically needs to achieve at least an "Intermediate" band and hold a ZGS Type II license under the TradeFIRST framework. This reflects the higher level of internal controls and risk management expected.
Information on Control and Beneficial Ownership: Licensees must obtain, maintain, and regularly update information on:
- The identity of the person(s) with control over the listed goods (e.g., the owner, consignee, or party directing the movement).
- The identity of the person(s) with beneficial ownership over the listed goods (the ultimate owner who benefits from the goods).
- This information must be produced to Singapore Customs upon request.
Customer Screening and Record-Keeping: Licensees must conduct screening, maintain, and update screening records of:
- Customers who deposit the listed goods.
- Person(s) with control over the listed goods.
- Person(s) with beneficial ownership over the listed goods.
- These screening records must also be provided to Singapore Customs upon request. This often involves Know-Your-Customer (KYC) or Customer Due Diligence (CDD) procedures.
Compliance and Notification:
- Comply with all relevant requirements related to listed goods.
- Inform Singapore Customs in writing if you no longer wish to store listed goods or are no longer able to comply with the requirements.
Red Flag Indicators and STR Filing: ZGS licensees are expected to be vigilant for "red flag indicators" that might suggest illicit activities related to the listed goods. If suspicious activities are detected, they are obligated to file a Suspicious Transaction Report (STR) with the Suspicious Transaction Reporting Office (STRO).

Why these additional requirements?

These measures are part of Singapore's broader efforts to combat financial crime and maintain its reputation as a clean and trusted financial and trading hub. Warehouses, especially those that suspend taxes, can potentially be exploited for illicit purposes. By requiring strict controls and transparency for "listed goods," Singapore Customs aims to prevent such misuse and ensure proper accountability.

If you plan to store goods that might fall under the "listed goods" category, it is crucial to consult the latest Singapore Customs guidelines or handbook on the Zero-GST Warehouse Scheme and/or seek direct clarification from Singapore Customs to ensure full compliance.

Unstuffing/Stuffing Supervision

For certain types of goods or specific permit conditions (e.g., when a container is sealed with a Singapore Customs seal), ZGS licensees (or their freight forwarders) may need to apply for direct Customs supervision during the unstuffing (unpacking) or stuffing (packing) of containers. This is to ensure that the declared goods match the physical contents and that no illicit items are introduced or removed. Fees may apply for such direct supervision.

Application Process:

The application process for the Zero-GST Warehouse Scheme involves:

TradeFIRST Self-Assessment: The company completes the TradeFIRST Self-Assessment Checklist and submits it to Singapore Customs.
Supporting Documents: Prepare and submit supporting documents such as:
- Accounting and Corporate Regulatory Authority (ACRA) BizFile Report.
- Audited financial statements for the past three years.
- A layout plan of the intended licensed premises, indicating entry/exit points and security features.
- Title deed or tenancy agreement.
- Other relevant documents as requested by Singapore Customs.
On-site Assessment: Upon receipt of the relevant documents, Singapore Customs will schedule and conduct an on-site assessment.
Application Results: The company receives the results of its application, including the TradeFIRST band achieved, which determines the facilitation and schemes available.

For detailed and up-to-date information, it is always best to refer to the official website of Singapore Customs.

Processing Time for Licenses Under the ZGS Scheme

The processing time for Zero-GST (ZGS) Warehouse Scheme licenses in Singapore is generally 3 to 4 months from the complete submission of all relevant documents to Singapore Customs.

However, it's important to note that this is an estimated timeframe, and the actual duration can vary depending on several factors, including:

Complexity of the Application: More complex business models, larger operations, or those with unique requirements may take longer to assess.
Completeness and Accuracy of Documents: Any missing or inaccurate information in the submitted documents will lead to delays as Singapore Customs will need to request clarifications or additional information.
Responsiveness of the Applicant: How quickly the applicant responds to queries or requests for further information from Singapore Customs can also impact the processing time.
TradeFIRST Assessment: A crucial part of the application is the TradeFIRST assessment. This evaluates a company's internal controls, compliance record, and security measures. The thoroughness and readiness of the company for this assessment can influence the overall timeline. Singapore Customs advises applicants to conduct a TradeFIRST self-assessment to ensure they meet all mandatory criteria before submitting their application.

Key Steps and Timeline Factors:

TradeFIRST Self-Assessment: This is the initial step and is crucial for preparing your application. While not part of the official processing time, a well-prepared self-assessment can expedite the subsequent steps.
Preparation and Submission of Documents: Gathering all the required documents (BizFile, financial statements, layout plans, tenancy agreements, etc.) accurately and completely is vital.
On-site Assessment: Once the documents are received, Singapore Customs will schedule and conduct an on-site assessment of your proposed warehouse premises and operations.
Review and Approval: Following the assessment, Singapore Customs will review the application and make a decision.

To minimize processing time, companies should ensure they:

Meet all eligibility criteria.
Conduct a thorough TradeFIRST self-assessment.
Prepare all supporting documents accurately and completely.
Are ready for the on-site assessment.
Respond promptly to any queries from Singapore Customs.

Licence Fee

The Zero-GST (ZGS) Warehouse Scheme in Singapore does have an annual license fee. This fee is not dependent on the type of ZGS license (Type I, II, or III), but rather on the average stock value of the goods stored in the licensed premises.

Here's a breakdown of the annual license fees for the period starting on or after 1 January 2025 (as per Singapore Customs):

Average Stock Value	Licence Fee (for the period starting on or after 1 Jan 2025)
S$1 million or less	S$1,390
More than S$1 million but less than S$5 million	S$3,480
S$5 million or more	S$5,570

Key Points about the License Fee:

Annual Payment: The fee is payable annually when the license is issued.
Based on Average Stock Value: Singapore Customs assesses the fee based on the average value of goods you intend to store in your ZGS licensed warehouse.
Not Linked to TradeFIRST Band: The TradeFIRST banding achieved by your company does not impact the license fees. The fees are determined by the potential duty, business activity, and business volume.

You can always find the most up-to-date information on license fees on the official Singapore Customs website.

How Bestar can Help

Bestar can offer invaluable assistance to companies seeking to apply for, maintain, or optimize their Zero-GST (ZGS) Warehouse Scheme licenses in Singapore. Given the complexity of Customs regulations, the stringent requirements of the TradeFIRST framework, and the ongoing compliance obligations, engaging Bestar can significantly streamline the process and mitigate risks.

Bestar has in-depth knowledge of Singapore Customs regulations, the GST Act, and specific trade facilitation schemes like ZGS.

Here's how Bestar can help:

Pre-Application Assessment & Feasibility:
- Initial Feasibility Study: Help assess if the ZGS scheme is truly beneficial for your specific business model and operations.
- Eligibility Assessment: Review your company's profile, operations, and existing systems against ZGS eligibility criteria.
- License Type Recommendation: Advise on the most suitable ZGS license type (Type I, II, or III) based on your operational needs (e.g., export ratio, volume, multiple locations).
TradeFIRST Preparation & Enhancement:
- Gap Analysis: Conduct a thorough gap analysis of your current procedures, systems, and security measures against the TradeFIRST Self-Assessment Checklist criteria.
- Process Improvement: Recommend and help implement necessary improvements to your inventory management systems, internal controls, security protocols, and documentation to meet TradeFIRST requirements.
- SOP Development: Assist in developing or refining Standard Operating Procedures (SOPs) for Customs-related activities (e.g., goods receipt, storage, removal, discrepancy reporting) that are compliant with ZGS and TradeFIRST.
Application Management:
- Document Preparation: Guide you through gathering and preparing all required supporting documents (e.g., financial statements, tenancy agreements, layout plans, company policies).
- Application Form Completion: Assist in accurately completing the ZGS application forms and TradeFIRST self-assessment checklist.
- Liaison with Customs: Act as a liaison with Singapore Customs, responding to queries, scheduling assessments, and facilitating communication throughout the application process.
Post-Licensing Compliance & Optimization:
- Ongoing Compliance Support: Provide advice on maintaining compliance with ZGS license conditions and changes in Customs regulations.
- Audit Preparation: Help prepare for Customs audits, including pre-audit reviews and mock audits.
- Training: Conduct training for your staff on ZGS requirements, permit declaration procedures, and compliance best practices.
- Operational Efficiency: Advise on optimizing ZGS operations to maximize cash flow benefits and minimize administrative burden.
Interpretation of Laws: Provide legal interpretations of the Customs Act, GST Act, CDSA, TSFA, and other relevant legislation impacting ZGS operations.
Contract Review: Review contracts with third-party logistics providers or customers to ensure they align with ZGS responsibilities.
Compliance with "Listed Goods" Requirements: Provide specific professional guidance on KYC/CDD obligations, beneficial ownership, and STR filing requirements, especially for companies dealing with "listed goods."
GST Implications: Advise on the specific GST implications of your ZGS operations, including proper accounting for GST deferrals, zero-rated exports, and local consumption.
Financial Reporting: Ensure your financial reporting accurately reflects the GST treatment of goods under the ZGS scheme.
Cash Flow Optimization: Provide financial modeling and analysis to demonstrate the cash flow benefits of the ZGS scheme.
Tax Audits: Assist with IRAS tax audits related to your GST reporting.
System Requirements: Help assess if your existing ERP or inventory management system meets the stringent traceability, record-keeping, and reporting requirements of ZGS and TradeFIRST.
System Implementation/Upgrade: Advise on, implement, or upgrade IT systems to ensure compliance with Customs data requirements, including permit generation, inventory reconciliation, and audit trail capabilities.
Integration: Ensure seamless integration between your operational systems and TradeNet for permit declarations.

Why Engage Bestar?

Expertise & Experience: We bring specialized knowledge and experience from working with various companies and dealing directly with Singapore Customs.
Time Savings: We can significantly reduce the time and effort your internal team spends on navigating complex regulations and preparing documentation.
Risk Mitigation: We help identify and address potential compliance gaps, minimizing the risk of penalties, license suspension, or audits.
Efficiency & Optimization: We can help you set up processes that are not only compliant but also efficient and optimized for your business operations.
Higher Success Rate: Our guidance can increase the likelihood of a successful ZGS application and achieving a higher TradeFIRST band.