Etaxguide GST Guide On Hand Carried Exports Scheme 20130930

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GST:
Guide on Hand-Carried Exports Scheme
IRAS e-Tax Guide
GST: Guide on Hand-Carried Exports Scheme
4
Published by
Inland Revenue Authority of Singapore
Published on 30 Sept 2013
Disclaimers: IRAS shall not be responsible or held accountable in any way for any damage, loss or
expense whatsoever, arising directly or indirectly from any inaccuracy or incompleteness in the Contents
of this e-Tax Guide, or errors or omissions in the transmission of the Contents. IRAS shall not be
responsible or held accountable in any way for any decision made or action taken by you or any third party
in reliance upon the Contents in this e-Tax Guide. This information aims to provide a better general
understanding of taxpayers’ tax obligations and is not intended to comprehensively address all possible
tax issues that may arise. While every effort has been made to ensure that this information is consistent
with existing law and practice, should there be any changes, IRAS reserves the right to vary our position
accordingly.
© Inland Revenue Authority of Singapore
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any
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GST: Guide on Hand-Carried Exports Scheme
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Table of Contents
1. Aim………………... ...................................................................................... 1
2 At a glance ................................................................................................... 1
3 Overview of the Scheme…………………………………………………………...2
4 Responsibilities of the supplier…………………………………………………...3
4.1 Key Responsibilities as a supplier ........................................................ 3
4.2 Operational procedures and conditions to ensure when selling goods to
overseas customer…………………………………………………………..3
4.3 Export Permit Declaration .................................................................... 4
4.4 Documents to maintain ......................................................................... 5
4.5 Making and reporting a sale in GST return ........................................... 6
5 Responsibilities of carrier ............................................................................ 9
6 Offences under the Scheme ...................................................................... 10
7 Exemption from the Scheme ..................................................................... 10
8 Contact information ................................................................................... 11
Appendix 1: Application for Exemption from Hand-Carried Export Scheme…12
Appendix 2: List of compulsory documents to be maintained by GST-
registered persons who are exempted from the Scheme ........... 16
Appendix 3: Specimen format of the carrier’s declaration for goods hand-
carried out of Singapore via Changi International Airport ........... 17
Appendix 4: Frequently Asked Questions (FAQ) ............................................. 18
GST: Guide on Hand-Carried Exports Scheme
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1 Aim
1.1 The Hand-Carried Exports Scheme (referred to as “the Scheme” in this
guide) was introduced to meet the following objectives:
(a) To guide GST-registered persons in obtaining the required
documentary proof that goods are hand-carried out of Singapore via
Changi International Airport; and
(b) To assure the Comptroller of GST that the goods are indeed exported
out of Singapore via Changi International Airport.
This guide sets out the kinds of documentary evidence required for goods
hand-carried out of Singapore via Changi International Airport, to be zero-
rated for GST purposes.
This Scheme is compulsory for all GST-registered persons who export their
goods by hand-carrying them out of Singapore via Changi International
Airport and wish to zero-rate the supplies of such goods.
This Scheme, however, does not apply to:
(a) goods that are hand-carried out of Singapore via Seletar Airport, sea or
land1.
(b) goods that are purchased by departing passengers from shops located
after the immigration check-in area of Changi International Airport2.
This guide should be read together with the e-Tax Guide “A Guide on
Exports”3.
2 At a glance
2.1 GST-registered local suppliers who wish to zero-rate the supplies of hand-
carried goods out of Singapore via Changi International Airport, may refer to
this guide for the documents required to prove the zero-rating.
This guide also describes the GST reporting requirements a local supplier
needs to be aware of, e.g. he is able to receive the endorsed export permit
within 60 days from the date of supply.
It is also essential for a local supplier to know what the qualifying conditions
of a carrier in this Scheme are and what he needs to inform the carrier
1 GST-registered persons are required to maintain the export documents listed in the e-Tax Guide “A Guide on
Exports” for their hand-carried exports made via Changi International Airport before 1 April 2009, Seletar
Airport, sea or land.
2 GST-registered persons operating retail shop(s) in the restricted area of the airport can zero-rate their supplies
of goods made to departing passengers. Such retailers must sight the passenger's passport and boarding
pass at the time of sale to verify that the passenger is indeed departing Singapore, before the sale can be
zero-rated.
3 This guide states the export documents that are required to be maintained to support the zero-rating of
supplies for GST purposes under different export scenarios.
GST: Guide on Hand-Carried Exports Scheme
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before he departs Singapore via Changi International Airport with the hand-
carried goods.
3. Overview of the Scheme
3.1 Under this Scheme, hand-carried goods must be supported by a valid export
permit4. The same goods must also be presented to the designated counters
of Singapore Customs (referred to as “SC” in this guide) at the airport for
inspection. After SC has inspected the goods, SC will endorse on the export
permit if SC is satisfied that the goods tally with the quantity and description
declared in the permit.
3.2 GST-registered persons who zero-rate their supplies of hand-carried goods
under this Scheme must retain the export permit endorsed by SC as proof of
their exports. Below is a diagram showing how the Scheme works.
3.3 As compliance with this Scheme is mandatory for the zero-rating of all hand-
carried exports via Changi International Airport, GST-registered persons are
required to apply to the Comptroller for exemption from the Scheme if they
meet the qualifying conditions (see paragraph 7) and wish to be exempted
from the Scheme.
4 Export permit is also known as “Out Permit” or “Cargo Clearance Permit”.
GST: Guide on Hand-Carried Exports Scheme
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4 Responsibilities of the supplier
4.1 The key areas of responsibilities of a GST-registered person, as a local
supplier, are as follows:
- Operational procedures and conditions when selling goods to overseas
customer;
- Export permit declaration;
- Documents to maintain; and
- Making and reporting a sale in GST return.
4.2 Operational procedures and conditions to comply with when selling
goods to overseas customer
4.2.1 A GST-registered person, as a local supplier, has to ensure that the goods
must be hand-carried out of Singapore via Changi International Airport.
4.2.2 The person bringing the goods out of Singapore is referred to as “the
carrier” in this guide. The carrier of the goods must be at least 16 years of
age at the time of presenting the goods to SC at the airport.
The carrier who carries the goods out of Singapore can be a local person or
a foreign person. He can be:
(i) The local supplier himself;
(ii) The overseas customer; or
(iii) A person who is appointed and authorised by the GST-registered
supplier or the overseas customer to bring the goods out of Singapore
(e.g. employee or representative).
4.2.3 After issuing invoice(s) / tax invoice(s) to the overseas customers, the GST-
registered local supplier has to ensure that the following procedures are
followed:
Procedures to follow after issuing invoice(s)/tax invoice(s) to
overseas customers
Confirm that the carrier is leaving Singapore with the goods via the
Changi International Airport;
Declare the goods in an export permit via TradeNet;
Give the carrier his invoice(s)/tax invoice(s) and the completed
export permit. Local supplier should also keep a copy of these
documents as his records;
Provide the carrier a self-addressed envelope with prepaid
postage for the carrier to return the export permit endorsed by SC;
GST: Guide on Hand-Carried Exports Scheme
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Inform the carrier to produce the goods together with the invoice(s)
/ tax invoice(s), export permit, passport and travel documents to
SC at the airport for inspection and endorsement;
Inform the carrier to arrive earlier at the airport to allow sufficient
time for the inspection of goods and endorsement of the export
permit by SC prior to departure;
Inform the carrier to carry small items especially those of high
value as hand luggage;
Inform the carrier to bring the goods with him out of Singapore
either in his hand luggage or check-in luggage;
Inform the carrier to return the endorsed export permit to him
within 60 days of the date of the supply of his goods; and
Inform the carrier that he must depart from Singapore within 12
hours after getting the endorsement by SC on the export permit.
4.2.4 It is important for the local supplier to take note of and communicate the
following to his overseas customers and carriers:
(a) When the carrier presents the export permit to SC, he is making a
declaration that he is bringing the goods out of Singapore. It is an
offence to make a false declaration;
(b) The carrier must produce the goods to SC for inspection and for the
export permit to be endorsed. The Comptroller of GST does not
accept endorsement by any other authorities; and
(c) The carrier must check in the goods or bring the goods out with him on
his departing flight after getting the export permit endorsed by SC. It is
a serious offence for him to pass the goods to another person or bring
the goods back to Singapore after the export permit is endorsed.
4.3 Export Permit Declaration
4.3.1 It is a requirement under this Scheme that an export permit5 must be
obtained for all goods to be hand-carried out of Singapore, regardless of the
value and quantity of goods.
4.3.2 A local supplier may subscribe for TradeNet and make declaration for the
export permit on his own. If the local supplier is not a TradeNet user, he can
obtain the export permit by appointing a TradeNet declaring agent such as
TradeNet Service Centre, freight forwarder or cargo agent to declare his
export.
4.3.3 The export permit declared under this Scheme must contain the following
information:
5 For more information on the export procedures and requirements, please visit the website of Singapore
Customs on http://www.customs.gov.sg and https://www.tradexchange.gov.sg.
GST: Guide on Hand-Carried Exports Scheme
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S/N
Compulsory details to be shown
on the export permit:
To be shown in this field
of the export permit:
1
Business name of the local supplier
“Exporter”
2
The carrier’s name, passport number,
date of birth and the scheduled
departure time of his flight
“Trader’s remarks”
3
Date of the carrier’s departure from
Singapore
“Departure date”
4
Flight number that the carrier is
departing on
“Voyage/Flight number”
5
Destination country for the hand-
carried goods
“Country of final destination”
6
Invoice / Tax invoice number for the
hand-carried goods
“Trader’s remarks”
7
Description for each type of the hand-
carried goods
“Description”
8
Total units for each type of the hand-
carried goods
“HS quantity & unit”
9
Total value for each type of the hand-
carried goods
“FOB value”
4.3.4 It is important for the local supplier to ensure that:
(a) All information declared in the export permit are accurate;
(b) He is declared as the exporter in the export permit; and
(c) The description of his goods declared in the export permit is adequate
for SC to identify and inspect the goods. The quantity of his hand-
carried goods must also be correctly declared in the export permit. SC
will not endorse on the export permit when the goods presented for
inspection do not tally with the quantity or description of the goods
declared in the export permit, or when there is manual alteration made
to the quantity or description of goods in the export permit.
4.4 Documents to maintain
4.4.1 To qualify for zero-rating of hand-carried goods under this Scheme, it is
important to maintain the following documents for at least 5 years:
(a) A list of the invoices / tax invoices and export permits issued under the
Scheme;
(b) Copies of the invoices / tax invoices issued for the goods sold;
(c) Original copies of export permits endorsed by SC; and
GST: Guide on Hand-Carried Exports Scheme
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(d) Evidence of payment made to the customer for the refund of GST that
was previously charged and collected from the customer at the time of
sale6
4.5 Making and reporting a sale in GST return
4.5.1 A GST-registered person must issue invoice/tax invoice to an overseas
customer for the sale of goods. The local supplier has the following options:
(a) Charge GST at the prevailing tax rate and collect the GST from the
overseas customer. The local supplier must issue invoice / tax invoice
to the overseas customer;
[The supplier must report the value of sale in Box 1 “Total value of
standard-rated supplies” and the corresponding GST collected in Box 6
“Output tax due” of his GST return for the prescribed accounting period
in which the sale takes place if he has not received the endorsed
export permit at the time of filing his GST return.
The supplier should also agree with the customer on whether any
administrative fee is involved and how the refund of GST will be made
after the supplier receives the export permit endorsed by SC.]
(b) Not to charge and collect GST from the overseas customer at the time
of sale. If the local supplier’s GST return is due to be filed within 60
days of the date of his supply, he can report the sale as zero-rated
supply provisionally in his GST return for the prescribed accounting
period in which the sale takes place.
However, if he does not receive the endorsed export permit within the
60-day period, he must standard-rate the supply and account for the
output tax using the tax fraction (7/107) either by filing GST F7 for the
prescribed accounting period in which the sale took place or in his next
GST return (subject to the conditions for filing GST F7).
Tables A and B summarises what the local supplier should do when he files
his GST return for the prescribed accounting period in which the sale takes
place.
6 This is relevant for instances where the local supplier has previously standard-rated the supply and
subsequently made a refund of GST to the customer upon receiving the export permit that contains the original
endorsement of SC; see paragraph Table B Column III Row (b).
GST: Guide on Hand-Carried Exports Scheme
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Table A
Supplier has not received the endorsed export permit
at the time of filing GST return
< 60 days
from the date of supply
> 60 days
from the date of supply
I
II
(a) GST was not charged to
the overseas customer.
To report as zero-rated
supply provisionally.
To report as standard-rated
supply and account for the
output tax.
(b) GST was charged to the
overseas customer.
To report as standard-
rated supply and account
for the output tax.
Table B
Supplier has received the endorsed export permit at
the time of filing GST return
< 60 days
from the date of supply
> 60 days
from the date of supply
III
IV
(a) GST was not charged to
the overseas customer.
To report as zero-rated
supply.
To report as standard-rated
supply and account for the
output tax if he receives the
endorsed export permit after
60 days of the date of
supply7.
(b) GST was charged to the
overseas customer.
The local supplier does
not need to report this
supply as standard-rated
supply and need not
account for output tax in
his GST return first.
The local supplier should
refund the GST back to
the overseas customer.
He may issue a credit
note to the overseas
customer.
4.5.2 What must the local supplier do when he receives the export permit
endorsed by SC?
The local supplier must:
(a) check that the export permit contains the original endorsement of SC;
and
(b) ensure that the endorsed export permit is received within 60 days of
the date of his supply of goods.
7 In the event that the supplier receives the endorsed export permit after 60 days due to unforeseen
circumstances that are beyond his control, IRAS may make an exception and allow him to zero-rate his supply
of goods. The exception shall be granted on a case-by-case basis and the supplier should write in to IRAS for
approval.
Endorsed permit
received?
Whether GST
charged?
Endorsed permit
received?
Whether GST
charged?
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4.5.3 If the local supplier has charged and collected GST from the customer at the
time of sale, what must he do to claim back the output tax which he has
already accounted to the Comptroller for the sale?
The local supplier must have done all the following before he can claim back
the output tax previously accounted to the Comptroller:
(a) Has originally accounted for the output tax on the sale at the prevailing
tax rate in his GST return (see paragraph 4.5.1a);
(b) Has already received the endorsed export permit within 60 days of the
date of his supply of goods;
(c) Has already refunded the tax to his overseas customer. If the supplier
refunds the tax via cheque to his customer, he can recover the tax from
the Comptroller of GST only after the cheque has been encashed by
the customer; and
(d) Maintain documents and records to show that the above conditions
have been satisfied (see paragraph 4.4).
You may refer to Table B Column III Row (b) on page 7 for a summary on
the above.
4.5.4 If the local supplier satisfies all the above conditions, he can proceed to
make the following adjustments in his GST return for the prescribed
accounting period in which he has refunded the tax to the customer:
(a) Include the value of the sale in Box 2 “Total value of zero-rated
supplies”;
(b) Reduce by the value of this sale from Box 1 “Total value of standard-
rated supplies”; and
(c) Reduce by the amount of GST that he has refunded to his customer on
this sale in Box 6 “Output tax due”.
4.5.5 The local supplier may issue a credit note to the overseas customer for the
amount of GST that he has refunded to the latter.
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5 Responsibilities of carrier
There are four broad responsibilities of a carrier:
Products and documents
Inspection and endorsement
For the purposes of SC’s inspection
of goods, the carrier needs to bring
the following:
a) Physical goods,
b) Invoice(s) / tax invoice(s);
c) Export permit; and
d) Passport and travel documents
such as boarding pass or
confirmed air-ticket.
The carrier must present the goods
and documents for endorsement at:
a) GST Hand-carried Exports
Inspection Counter8 in the airport.
Type of items
Returning of endorsed permit
For bulky items or goods packed in
luggage that are to be checked in,
the goods and documents have to
be presented to SC for inspection
and endorsement before the
immigration check-in area.
For small items that can be hand-
carried, SC reserves the right to
request that these be produced for
verification after the immigration
check-in area, located in the
Departure Lounge.
After getting the export permit
endorsed by SC, the carrier must
check in the goods or hand-carry
the goods with him on a departing
flight.
The export permit bearing the
original endorsement of SC must be
returned to the local supplier within
60 days of the date of his supply.
The overseas carrier may return the
endorsed permit to the local
supplier by:
(a) enclosing the endorsed export
permit in a pre-paid postage
envelope addressed to the local
supplier [see paragraph
4.2.3(d)], and drop it in the
mailbox located next to the GST
Hand-carried Exports Inspection
Counter at the airport.
(b) mailing the endorsed export
permit back to the local supplier
from overseas.
(c) bringing the endorsed export
permit back to the local supplier
on his next visit to Singapore.
8 These counters are located before and after the immigration check-in area in all airport terminals. They can
be found next to the GST Refund Inspection Counters for tourists claiming GST refunds on goods purchased
in Singapore from retailers operating the Tourist Refund Scheme.
GST: Guide on Hand-Carried Exports Scheme
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6 Offences
6.1 All GST-registered persons who zero-rate their supplies of hand-carried
goods under this Scheme must comply with the conditions laid out in
Regulation 105A of the GST (General) Regulations and this e-Tax Guide.
Please note that failure to comply with the regulations will lead to the zero-
rating of supplies being denied and the GST-registered person will have to
account for the GST on the supplies. Penalties will also be imposed on the
GST-registered person.
6.2 Any person (including the GST-registered person and the carrier) who is
guilty of an offence made under the Scheme shall be liable, on conviction, to
a fine not exceeding $5,000 and an imprisonment term not exceeding 6
months in default of payment.
7 Exemption from the Scheme
7.1 A local supplier may apply to be exempted from this Scheme by completing
an application form (see Appendix 1)9 and submit his application to the
Comptroller of GST.
7.2 To qualify for the exemption, the local supplier must satisfy all of the
following criteria:
(a) He must satisfy the Comptroller of GST that there are valid commercial
reasons for not being able to present the goods for inspection at the
airport. These commercial reasons must also be consistent with
international practices and norms related to the particular trade.
(b) He must have good compliance records for GST and Income Tax (e.g.
good filing and payment records). He must continue to have good
compliance records for GST and Income Tax.
(c) He must maintain a comprehensive list of documents as required by
the Comptroller in Appendix 2 of this guide.
7.3 For the protection of revenue, the Comptroller of GST may exercise his
discretion to vary the requirements or impose additional requirements for the
approval of this exemption.
7.4 Prior to receiving a written approval on the exemption from the Comptroller
of GST, the local supplier must adhere to the requirements of the Scheme
for all of his hand-carried exports.
7.5 Upon obtaining a written approval from the Comptroller of GST on his
application for exemption from the Scheme, the local supplier will not be
9 This application form “GST F17: Application for Exemption from Hand-Carried Exports Scheme” can also be
downloaded from IRAS website at http://www.iras.gov.sg.
GST: Guide on Hand-Carried Exports Scheme
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required to present the hand-carried goods and export permits to SC for
inspection and endorsement at the airport.
7.6 To support the zero-rating of his hand-carried items that are exempted from
this Scheme, the local supplier must obtain the documents as listed in
Appendix 2 within 60 days of the date of his supply of goods.
8 Contact information
For any clarifications on this e-Tax Guide or the Hand-Carried Exports
Scheme, please contact:
Goods & Services Tax Division
Inland Revenue Authority of Singapore
55 Newton Road
Singapore 307987
Tel: 1800 356 8633
Fax: (+65) 6351 3553
Email: gst@iras.gov.sg
GST: Guide on Hand-Carried Exports Scheme
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Appendix 1:
GST F17
APPLICATION FOR EXEMPTION FROM
HAND-CARRIED EXPORTS SCHEME
The Comptroller of Goods and Services Tax
55 Newton Road, Revenue House, Singapore 307987. Tel: 1800-356 8633
For more information, please visit IRAS website at http://www.iras.gov.sg
Important Notes:
(1) This form may take 20 minutes to complete.
(2) To qualify for the exemption, you must satisfy the Comptroller of GST that there are valid commercial
reasons for not being able to present the goods for inspection at the airport. These commercial reasons
must also be consistent with international practices and norms related to the particular trade. In
addition, you must have good compliance records for GST and Income Tax (e.g. good filing and
payment records).
(3) You do not need to attach any document to this application form.
(4) You will be notified in writing when your application has been approved.
(5) Prior to receiving a written approval on the exemption from the Comptroller of GST, you are still
required to adhere to the requirements of the Hand-Carried Exports Scheme for all of your hand-carried
exports.
(6) You are required to notify IRAS if you no longer require the exemption after your application has been
approved.
(7) Please send this completed form by post or submit it at IRAS Taxpayer Services Centre.
Please complete the form and indicate ‘NA’ where not applicable.
SECTION 1: APPLICANT’S PARTICULARS
Full name of the applicant (as registered for GST)
Address of correspondences
Block/House
#
Storey
-
Unit
Street Name
Postal code
Business Registration Number /
Unique Entity Number
Name of contact
Designation
Email Address
Office Number
Company website (if any)
Mobile Number
Fax Number
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SECTION 2: BUSINESS DETAILS OF APPLICANT
(i) Please give a brief description of the business activities carried out by you (including how
the transactions are being carried out to give rise to your making of zero-rated supplies).
(ii) Country where most of your goods are exported to via Changi International Airport:
1
5
2
6
3
7
4
8
(iii) Products that you are dealing in (please tick accordingly):
1
Jewellery
Please elaborate:
2
Loose Diamonds
3
Luxury Watches
Please state 3 major brands:
a)
b)
c)
4
Other products
Please elaborate:
(iv) Average number of hand-carried exports via Changi International Airport made per month for
the past 12 months:
1 to 5
5-10
More than 10
(v) Percentage of total value of hand-carried exports via Changi International Airport to
total value of zero-rated supplies for the past 12 months:
(vi) Average value of hand-carried exports via Changi International Airport
made per month for the past 12 months:
$
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SECTION 3: REASON FOR EXEMPTION
(i) Please state the reason(s) for applying for the exemption.
(ii) Please explain the problems/difficulties you would face if the exemption is not granted.
(iii) Please state the product type on which you would like to apply for exemption.
1
Jewellery
Please elaborate:
2
Diamond Jewellery
3
Loose Diamonds
4
Luxury Watches
5
Other products
Please specify the ‘other products’ here:
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SECTION 4: DECLARATION
I, ___________________________________ NRIC / Passport / Fin Number _____________
(Full Name of Signatory)
declare that all the details and information given in this form and in any accompanying
document are true and complete.
I understand that once my application has been approved, I am required to maintain the
documents as stipulated in Appendix 2 of the e-Tax Guide “GST: Guide on Hand-Carried
Exports Scheme” to prove my hand-carried exports and fulfill any conditions as
imposed by the Comptroller of Goods and Services Tax.
Signature
Date
Designation (Please tick the appropriate box):
(For sole-proprietor / partnership, it must be signed by the sole-proprietor / partner.)
Sole-
proprietor
Partner
Director
Company
Secretary
Authorized
Official
Please ensure that this form is fully completed and duly signed before submission.
GST/FORM019/0309
GST: Guide on Hand-Carried Exports Scheme
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Appendix 2: List of compulsory documents to be maintained by GST-
registered persons who are exempted from the Scheme
a) Invoice / Tax invoice to overseas customer;
b) One of the following documents listed in (i) to (iv) below:
(i) Written declaration by the person who hand-carries the goods that the
goods are for export. This declaration should be signed by him and
contain his full name, address and passport / NRIC number. A
specimen format of the carrier’s declaration can be found in Appendix 4:
(ii) Extract of the carrier’s passport with the relevant immigration
endorsement of his exit from Singapore or entry to a foreign country and
copy of transport evidence such as the electronic air-ticket or flight
itinerary bearing the carrier’s name. For goods exported as
accompanied baggage, a copy of airline excess baggage receipt (where
applicable);
(iii) Confirmation of receipt of goods from the overseas customer; and
(iv) Import permit or other relevant documents to prove that the goods are
brought into the country of destination.
c) Export permit (subject to the requirements of Singapore Customs for export
permits); and
d) Evidence of payment received from the overseas customer.
GST: Guide on Hand-Carried Exports Scheme
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Appendix 3: Specimen format of the carrier’s declaration for goods hand-
carried out of Singapore via Changi International Airport
Declaration of Carrier for Goods Hand-Carried Out of Singapore
(By Individual Carrier)
To
(Name and address of supplier who is exempted from the Hand-Carried Exports Scheme)
I, ___________________(name of carrier as shown in passport), hereby confirm that I will be
hand-carrying the following goods out of Singapore via Changi International Airport.
Details of Goods
Name of Customer (as per invoice)
Invoice Date
Invoice Number
Quantity of Goods
* Value of goods hand-carried out by me
Description of Goods
Details of Departure
Date of Departure
Flight Number
Time of Flight
Name of Airline
Destination
Details of Carrier
Relationship to customer or seller
(delete where not applicable)
Address
Nationality
Passport Number
Signature of carrier ______________________
Date of declaration ______________________
* If the goods are to be hand-carried out by different carriers, then the value of the goods shown
in each carrier’s declaration should be the invoiced value for the quantity hand-carried out by
that respective carrier.
GST: Guide on Hand-Carried Exports Scheme
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Appendix 4: Frequently Asked Questions (FAQ)
FAQs for the GST-registered local supplier
Q1 Is there any qualifying threshold on the value or quantity of goods for the
Hand-Carried Exports Scheme?
A1 No. All goods that are hand-carried out of Singapore via Changi International
Airport must come under the Hand-Carried Exports Scheme if the GST-
registered suppliers wish to zero-rate the supplies of such goods. This
Scheme is compulsory for all such hand-carried goods regardless of their
value and quantity.
Q2 If I’m selling my goods to a local customer who says that he will be hand-
carrying the goods out of Singapore via the airport, can I zero-rate my supply
to him under this Scheme?
A2 No. The Hand-Carried Exports Scheme only applies to goods that are sold to
overseas customers. As you are selling your goods to a local customer, you
must standard-rate the supply and charge GST on this local sale. This is the
case even though your local customer claims that he or his appointed carrier
will be bringing your goods out of Singapore.
Q3 I am selling my goods to an overseas customer and my goods will be hand-
carried out of Singapore via Changi International Airport. Can I choose to
standard-rate my supply and account for the output tax instead of zero-rating
the supply under the Hand-Carried Exports Scheme?
A3 If you wish to treat this as a local sale (notwithstanding that the goods are sold
to your overseas customer) and not a zero-rated supply under the Hand-
Carried Exports Scheme, then you must standard-rate your supply and
account for the output tax in your GST return. In this instance, you do not
need to fulfill the conditions of the Hand-Carried Exports Scheme. However
to avoid any misunderstanding by the customer, you should inform him that
this is a standard-rated local sale and that he is not entitled to claim any GST
refund from the Comptroller.
Q4 What if my hand-carried goods are not exported for sale but are brought to an
overseas country for other purposes (e.g. for testing or repair services, as
trade samples, for participation in an exhibition etc)? As there is no supply of
goods, do I need to report the value of goods exported as zero-rated supply in
my GST return? Should I make declaration for an export permit for these
goods and get it endorsed by Singapore Customs at the airport under this
Scheme?
A4 Yes, for GST reporting, you must declare the value of the goods exported as
zero-rated supply in your GST return even though you did not make a supply
of these goods and may not issue any invoice / tax invoice. You are also
GST: Guide on Hand-Carried Exports Scheme
19
required to take up an export permit and get it endorsed by SC under the
Hand-Carried Exports Scheme so that you can prove to the Comptroller that
the goods are indeed taken out of Singapore. If you subsequently sell these
goods when they are outside Singapore, the endorsed export permit will
provide evidence that your supply of goods has taken place outside
Singapore.
The above requirements would not apply if you are merely bringing the goods
(e.g. tools and equipment) for use when you perform services in an overseas
location and you intend to bring these goods back to Singapore after your
services have been performed.
If you wish to export the goods under the Temporary Export Scheme or export
goods which are previously imported under the Temporary Import Scheme,
please visit the website of SC on http://www.customs.gov.sg and
https://www.tradexchange.gov.sg to find out more about the permit
requirements.
Q5 What happens if:
(a) the particulars of the carrier (e.g. his name, passport number, date of
departure from Singapore, his departure flight number etc) as required in
paragraph 4.3.3 are not available when I make declaration for an export
permit; or
(b) there is a change in the carrier or in the carrier’s flight details after I have
declared all the required information in the export permit?
A5 Please refer to paragraph 4.3.3 You will have to declare certain information
such as the carrier's departure flight number and date of departure from
Singapore for the export permit to be approved. If there is a change in such
information, you should amend the information in the export permit via
TradeNet before the permit is presented to SC for endorsement.
Alternatively, you can re-apply for a new export permit via TradeNet and
present this new permit to SC for endorsement.
You may, however, manually correct the information declared in the “Trader's
remarks” field.
Q6 My goods are distributed among several carriers to hand-carry out of
Singapore via the airport. How should I declare for the export permit?
A6 If all the carriers are departing on the same flight, you only need to make
declaration for a single export permit for your hand-carried goods. Preferably,
the personal particulars (i.e. names, passport numbers and dates of birth) of
all the carriers should be indicated on your export permit. You should also
inform the carriers that they must present themselves and the goods together
to SC at the airport.
GST: Guide on Hand-Carried Exports Scheme
20
On the other hand, if all the carriers are departing on different flights, you
should take up different export permits for the goods to be hand-carried out by
each individual carrier. Each export permit should show the particulars of the
individual carrier as well as the quantity and description of the goods to be
hand-carried by that carrier (i.e. the information as required in paragraph
4.3.3).
Please note that SC will not endorse on the export permit if the goods
presented for inspection do not tally with the quantity or description declared
in the export permit. Hence, you are reminded to declare the correct quantity
and description of the hand-carried goods in your export permit.
Q7 What if there is a change in the quantity of my goods to be hand-carried out
after I have declared for an export permit, say from 10 units to 30 units of my
goods?
A7 You should amend the quantity of your goods in the export permit via
TradeNet, before the goods and export permit are presented to SC for
endorsement. When it is not possible to amend the export permit through
TradeNet and:
(a) if the quantity of your goods to be hand-carried out via the airport (e.g. 30
units) is more than what you have declared in the export permit, you
should take up another export permit for the additional goods (i.e. the
additional units) to be hand-carried out. All export permits declared for
the quantity of your hand-carried goods must be presented to SC at the
airport for endorsement.
(b) if you are exporting a lower quantity of goods (e.g. 8 units), you would
have to re-apply a new export permit via TradeNet. You should also
cancel the previous export permit via TradeNet if it is within the validity
period of the permit.
Please be reminded that the quantity of goods presented to SC for inspection
must tally with the quantity declared in the export permit(s). The Comptroller
of GST and SC do not accept any manual alteration made to the quantity of
goods in the export permits.
Q8 Must I get the original export permit for SC to endorse? Will SC endorse on a
copy of the export permit?
A8 Whenever possible, you should obtain the original export permit for SC to
endorse under this Scheme. In the event that you are unable to get the
original permit, SC will endorse on the copy of export permit (e.g. photocopy,
faxed copy or copy of the scanned image) that is presented together with the
goods, provided that all information on the copy of export permit is legible.
GST: Guide on Hand-Carried Exports Scheme
21
Q9 What happens if:
(a) the original copy of the export permit endorsed by SC is misplaced or
lost in mail?
(b) I only received a photocopy instead of the original copy of the endorsed
export permit?
A9 To zero-rate your supply under this Scheme, you must maintain the export
permit which bears the original endorsement made by SC. Without the original
copy of the endorsed export permit, you cannot zero-rate your supply under
this Scheme. Therefore, you must standard-rate your supply and account for
the output tax in your GST return.
Q10 Can I zero-rate my supply if I received the endorsed export permit from my
overseas customer or the carrier after 60 days of the date of my supply?
A10 If you receive the endorsed export permit after 60 days due to unforeseen
circumstances that are beyond your control, you may write in to the
Comptroller of GST and request for approval to zero-rate your supply. The
Comptroller will review your request on a case-by-case basis.
Q11 Under what circumstances would SC not endorse on an export permit?
A11 Examples of the circumstances under which SC will not endorse on the export
permit under the Scheme are:
(a) The person who presents the goods and export permit to SC is below
16 years old;
(b) The passport or travel document (e.g. boarding pass or confirmed air-
ticket) does not belong to the person who presents the goods and export
permit to SC;
(c) The travel document shows that the carrier’s departing flight is not
scheduled to leave Singapore within 12 hours. In this instance, SC may
request the carrier to come back at a later time for the inspection of
goods and endorsement of export permit;
(d) The quantity of goods presented for inspection does not tally with the
quantity declared in export permit;
(e) The nature of goods presented for inspection is different from the
description of goods declared in export permit;
(f) There is a manual alteration made to the quantity or description of goods
in the export permit; and
(g) The carrier arrives late at the airport and there is insufficient time for SC
to carry out the inspection required.
Please note that the above list is not exhaustive. In the event that SC deem
that certain condition(s) of the Scheme is not satisfied, SC will not endorse on
GST: Guide on Hand-Carried Exports Scheme
22
the export permit and will indicate the reason for rejection on the export
permit.
Once SC has refused to endorse on the export permit, no further request or
appeal for re-endorsement shall be considered regardless of the reasons
cited.
Q12 What if the export permit is not endorsed by SC and I cannot find any reason
for rejection indicated by SC on the permit?
A12 Please refer to A9. It is likely that the export permit is not presented to SC for
endorsement at the airport.
Q13 I have been granted approval by IRAS to be exempted from this Scheme and
I’m required to maintain all the compulsory documents listed in Appendix 2 for
my hand-carried exports. What if I’m unable to obtain any of the compulsory
documents for my hand-carried exports?
A13 The compulsory documents listed in Appendix 2 are the basic documents for
you to prove that the hand-carried goods are taken out of Singapore. If you
fail to maintain any of the compulsory documents, you will not be allowed to
zero-rate your supply of goods and you must charge GST on these supplies.
Q14 I understand that the Scheme does not apply to goods that are hand-carried
out of Singapore via:
Changi International Airport before 1 April 2009;
Seletar Airport;
Sea; or
Land.
What export documents should I maintain to support the zero-rating of my
supplies of such hand-carried exports?
A14 For the above hand-carried exports that do not fall under the Scheme, you are
required to maintain the export documents as specified in our e-Tax Guide “A
Guide on Exports”. You can download a copy of this e-Tax Guide from our
website at www.iras.gov.sg
In addition, you should comply with the requirements of SC and take up an
export permit if necessary. Unlike the Scheme, such hand-carried exports
need not be presented to SC for inspection and you do not need to get SC to
endorse on the export permit (unless you are required by SCs or other
government agency to do so).
Q15 I have been operating the Tourist Refund Scheme to allow my foreign
customers to claim back the GST paid on the goods which they have
purchased from me and brought out of Singapore. How would the Scheme
affect me? Would the Tourist Refund Scheme still continue after the Scheme
GST: Guide on Hand-Carried Exports Scheme
23
is implemented? If yes, when should I use the Scheme instead of the Tourist
Refund Scheme?
A15 The Tourist Refund Scheme will still continue, even after the Hand-Carried
Exports Scheme is implemented on 1 April 2009.
As the purpose of the Tourist Refund Scheme is to enable tourists to obtain
GST refund on goods which they have purchased in Singapore and brought
out of Singapore, you should use the Tourist Refund Scheme only when your
customer is a bona fide tourist and satisfies all eligibility criteria under that
scheme.
On the other hand, if you are selling goods to an overseas customer whom
you know is not a bona fide tourist and your goods are hand-carried out of
Singapore via Changi International Airport, you should use the Scheme if you
wish to zero-rate the supplies of such goods. However unlike the Tourist
Refund Scheme, there is no facility at Changi International Airport for your
overseas customer or the carrier of your goods to obtain the GST refund in
cash under the Scheme. Your overseas customer can only get the GST
refund from you if you have collected GST from him on the sale.
For more information on the Tourist Refund Scheme, please refer to our e-Tax
Guide “Guide to Retailers Operating Tourist Refund Scheme” which can be
downloaded from our website at www.iras.gov.sg
FAQs for the carrier
Q16 Where are the inspection counters for the Scheme located in Changi
International Airport?
A16 The GST Hand-Carried Exports Inspection Counters are located next to the
GST Refund Inspection Counters in all terminals of Changi International
Airport.
If your goods are bulky or need to be checked in, you need to present the
goods and export permit to SC for inspection and endorsement at the
inspection counter located in the Departure Check-In Hall before you check in
for your flight and clear the departure immigration.
For goods which you hand-carry into the aircraft, please clear the departure
immigration and produce your goods and export permit to SC at the inspection
counter located in the Departure Lounge.
Q17 What should I produce to SC at the inspection counters in Changi International
Airport?
A17 You should produce all of the following to SC at the inspection counters:
(a) Your passport;
GST: Guide on Hand-Carried Exports Scheme
24
(b) Your travel document (e.g. boarding pass, confirmed air-ticket, etc) as
proof of your intention to depart from Singapore;
(c) The export permit(s) for the goods which you are bringing out of
Singapore;
(d) The goods; and
(e) The supporting invoice(s) or tax invoice(s) for the goods which you are
bringing out of Singapore.
Q18 What if I turn up at the inspection counter not within 12 hours of the scheduled
departure time of my flight?
A18 One of the conditions of this Scheme is that the carrier must depart from
Singapore within 12 hours after getting the endorsement by SC on the export
permit. Hence, if you turn up at the inspection counter not within 12 hours of
the scheduled departure time, SC will not inspect your goods but will request
you to return at a later time for inspection and endorsement.
Q19 What should I do after getting the export permit endorsed by SC?
A19 You should either check in your goods or hand-carry the goods with you on
your departing flight, and leave Singapore within 12 hours.
If you have a postage prepaid envelope which is addressed to the local
supplier, you may enclose the endorsed export permit in the envelope and
drop it in the mailbox located next to the inspection counters at the airport
before boarding the plane.

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