ZGS Application Engagement Agreement

ZGS Application Engagement Agreement | Bestar

Engagement Agreement: Application for Zero-GST Warehouse Scheme in Singapore

This Engagement Agreement ("Agreement") is made effective as of [Date], by and between:

Bestar Consulting Pte. Ltd. ("Service Provider"), 23 New Industrial Road, #04-08 Solstice Business Center, Singapore 536209, Contact Number +65 62994730, Email Address admin@bestar.sg

AND

[Client Company Name] ("Client") [Client Company Address] [Client Company Contact Number] [Client Company Email Address]

WHEREAS, the Client desires to apply for the Zero-GST Warehouse Scheme (ZGS) in Singapore, a scheme administered by Singapore Customs and IRAS, to defer Goods and Services Tax (GST) on imported non-dutiable goods stored in a designated licensed warehouse;

WHEREAS, the Service Provider possesses the necessary expertise and experience to assist the Client in navigating the application process for the ZGS;

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties agree as follows:

1. Scope of Services

The Service Provider agrees to provide the following services to the Client in connection with the application for the Zero-GST Warehouse Scheme (hereinafter referred to as "the Services"):

• 1.1 Eligibility Assessment and Consultation:

  
  

  • Review the Client's business operations, current GST registration status, and existing compliance records with Singapore Customs and IRAS to assess eligibility for the ZGS.

  • Provide expert advice on the requirements for the ZGS, including premises suitability, security measures, stock record-keeping, and warehouse procedures.

  • Advise on the most suitable ZGS license type (Type I, Type II, or Type III) based on the Client's business model and re-export volumes.

    
    

• 1.2 TradeFIRST Assessment Support:

  
  

  • Assist the Client in completing the TradeFIRST Self-Assessment Checklist, a mandatory step for ZGS application.

  • Guide the Client in preparing documentation and demonstrating compliance with the six aspects of the TradeFIRST assessment framework (Company Profile, Procedures and Processes, Security, Inventory Management, Compliance, and Other scheme-specific requirements).

    
    

• 1.3 Documentation Preparation and Review:

  
  

  • Assist in gathering and reviewing all necessary supporting documents for the ZGS application, including but not not limited to:

    
    

    • Accounting and Corporate Regulatory Authority (ACRA) BizFile Report.

    • Audited financial statements for the past three (3) years.

    • Layout plan of the proposed licensed premises, indicating entry/exit points and security features (CCTV, alarm systems).

    • Title deed or tenancy agreement for the warehouse premises.

    • Details of inventory management system and procedures.

    • Security bond documentation (if required).

    • Insurance certificates covering stored goods.

      
      

  • Ensure all documents meet the requirements of Singapore Customs and IRAS.

    
    

• 1.4 Application Submission and Liaison:

  
  

  • Assist in the accurate and complete submission of the ZGS application to Singapore Customs.

  • Act as a liaison between the Client and Singapore Customs/IRAS for all queries, clarifications, and requests for additional information during the application processing period.

  • Coordinate and prepare the Client for any on-site assessment by Singapore Customs, if required.

    
    

• 1.5 Post-Approval Guidance (Optional - to be quoted separately if required):

  
  

  • Provide initial guidance on ongoing compliance requirements, permit declarations (e.g., In-Non-Payment (APS) permits), and record-keeping once the ZGS license is approved.

2. Client's Responsibilities

The Client agrees to:

• Provide all necessary and accurate information, documents, and data required by the Service Provider in a timely manner.

• Ensure that the designated premises for the Zero-GST Warehouse meet all physical and security requirements as stipulated by Singapore Customs.

• Cooperate fully with the Service Provider, Singapore Customs, and IRAS throughout the application process.

• Appoint a dedicated point of contact for all communications related to the ZGS application.

• Remit all agreed-upon fees to the Service Provider as per the payment terms outlined in Section 4.

• Be responsible for the security, accountability, and control of goods stored in the designated premises, as required by Singapore Customs regulations.

• Adhere to all stipulated permit conditions and provide assistance to Singapore Customs for any investigation, audit, stock check, or supervision.

3. Fees and Payment

• 3.1 Fixed Fee: The Client agrees to pay the Service Provider a fixed fee of SGD [Amount in figures] ([Amount in words] Singapore Dollars) for the Services outlined in Section 1.

  
  

• 3.2 Payment Schedule:

  
  

  • An initial payment of [Percentage]% (SGD [Amount]) of the fixed fee shall be due upon the signing of this Agreement.

  • The remaining [Percentage]% (SGD [Amount]) of the fixed fee shall be due upon submission of the complete ZGS application to Singapore Customs.

    
    

• 3.3 Additional Costs: Any out-of-pocket expenses incurred by the Service Provider on behalf of the Client (e.g., courier fees, printing costs) will be billed separately and require prior approval from the Client.

  
  

• 3.4 GST: All fees quoted are exclusive of Goods and Services Tax (GST). GST will be charged at the prevailing rate, if applicable.

  
  

• 3.5 Late Payment: In the event of late payment, the Service Provider reserves the right to charge interest at a rate of [Percentage]% per month on overdue amounts.

4. Term and Termination

• 4.1 Term: This Agreement shall commence on the Effective Date and shall continue until the completion of the Services or until terminated earlier as provided herein.

  
  

• 4.2 Termination by Either Party: Either party may terminate this Agreement by providing written notice to the other party if:

  
  

  • The other party commits a material breach of this Agreement and fails to remedy such breach within thirty (30) days of receiving written notice thereof.

  • The other party becomes insolvent or enters into any form of bankruptcy or winding-up proceedings.

    
    

• 4.3 Termination by Client (without cause): The Client may terminate this Agreement at any time by providing thirty (30) days' written notice to the Service Provider. In such an event, the Client shall be liable for all fees for Services rendered up to the date of termination, along with any non-cancellable expenses incurred by the Service Provider.

  
  

• 4.4 Effect of Termination: Upon termination, the Service Provider shall return all documents and information belonging to the Client, and the Client shall pay all outstanding fees and expenses.

5. Confidentiality

Both parties agree to keep all confidential information exchanged during the course of this Agreement strictly confidential and not to disclose it to any third party without the prior written consent of the disclosing party, except as required by law.

6. Limitation of Liability

The Service Provider shall exercise reasonable care and diligence in providing the Services. However, the Service Provider shall not be liable for any indirect, incidental, consequential, or special damages, including but not limited to loss of profits or business interruption, arising out of or in connection with this Agreement. The Service Provider's total liability under this Agreement shall be limited to the total fees paid by the Client for the Services.

7. Indemnification

The Client agrees to indemnify and hold harmless the Service Provider from and against any and all claims, damages, liabilities, costs, and expenses (including reasonable legal fees) arising from the Client's breach of this Agreement, or from any inaccurate or incomplete information provided by the Client.

8. Governing Law and Dispute Resolution

• 8.1 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of Singapore.

  
  

• 8.2 Dispute Resolution: Any dispute, controversy, or claim arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration in Singapore in accordance with the Arbitration Rules of the Singapore International Arbitration Centre (SIAC) for the time being in force, which rules are deemed to be incorporated by reference in this clause. The Tribunal shall consist of one (1) arbitrator. The language of the arbitration shall be English.

9. Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written.

10. Amendments

Any amendment or modification to this Agreement must be in writing and signed by both parties.

11. Severability

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

FOR Bestar Consulting Pte. Ltd.

[Name]

CEO

FOR [Client Company Name]

[Name]

[Title]

How Bestar can Help

ZGS Application Engagement Agreement

Bestar can provide valuable assistance with the Zero-GST Warehouse Scheme (ZGS) application and ongoing compliance in Singapore. Our expertise can significantly streamline the process and minimize potential pitfalls. Here's how Bestar can help:

• Expert Guidance: We possess in-depth knowledge of Singapore Customs regulations, the ZGS scheme specifics, and the TradeFIRST framework. We can provide tailored advice on eligibility, requirements, and best practices.

  
  

• Eligibility Assessment: We can conduct a thorough review of your business operations to determine the most suitable ZGS license type (Type I, Type II, Type III) and assess your readiness for the application.

  
  

• Application Strategy: We help you develop a robust application strategy, identifying potential challenges and pro-actively addressing them.

  
  

• Documentation Preparation: We guide you in preparing all necessary supporting documents, ensuring accuracy, completeness, and compliance with Customs' requirements. This includes reviewing financial statements, inventory management systems, and security protocols.

• Liaison with Authorities: We can act as your representative, liaising directly with Singapore Customs and IRAS on your behalf, handling queries, and providing clarifications. This saves you time and ensures effective communication.

  
  

• Pre-Audit Preparation: We can help you prepare for on-site assessments by Singapore Customs, including mock audits and training your staff on what to expect.

  
  

• Post-Approval Compliance: We can advise on ongoing compliance obligations, such as proper record-keeping, submission of accurate permit declarations (e.g., In-Non-Payment (APS) permits), and maintaining the required security and inventory controls.

  
  

• Legal Interpretation: While less common for routine ZGS applications, Bestar can be crucial for interpreting complex legal aspects of customs regulations, especially if there are unique business structures or specific legal concerns.

  
  

• Contract Review: We can review and advise on contracts related to warehousing, logistics, or agreements with third-party service providers to ensure compliance with ZGS requirements.

  
  

• GST Impact Analysis: We can assess the precise financial impact of the ZGS on your GST obligations and cash flow, ensuring you fully leverage the scheme's benefits.

  
  

• Financial Documentation: We can assist in preparing and reviewing the financial statements and other accounting documents required for the application, ensuring they meet the necessary standards.

  
  

• GST Compliance Post-Approval: We ensure your internal accounting systems and processes are set up correctly to handle GST deferral and subsequent accounting entries accurately, preventing future compliance issues.

  
  

• IRAS Liaison: We can help address any GST-related queries from IRAS that may arise during or after the ZGS application.

  
  

• Warehouse Optimization: While the ZGS is about tax deferral, its success often hinges on efficient warehouse operations. Bestar can help optimize your warehouse layout, inventory management systems, and security procedures to meet Customs requirements and improve operational efficiency.

  
  

• Technology Integration: We can advise on and assist with implementing technology solutions (e.g., Warehouse Management Systems - WMS) that facilitate accurate record-keeping and reporting, which are critical for ZGS compliance.

In summary, engaging Bestar offers several key benefits:

• Increased Success Rate: Our expertise significantly increases the likelihood of a successful ZGS application.

  
  

• Time Savings: We handle the complex administrative tasks, allowing your team to focus on core business activities.

  
  

• Reduced Risk: We help mitigate the risk of errors, non-compliance, and potential penalties from Customs or IRAS.

  
  

• Optimized Benefits: We ensure you fully leverage the cash flow advantages of the ZGS.

  
  

• Peace of Mind: Knowing that experienced professionals are guiding you through the process provides confidence and reduces stress.

For a Zero-GST Warehouse Scheme application, Bestar is the primary and most crucial professional to engage due to our direct specialization in trade and customs regulations. We can also work collaboratively with your internal accounting teams or external tax advisors to ensure comprehensive support.

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