All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not constitute

professional
advice. IE Singapore or its employees shall not be held responsible for any consequence arising from your reliance on any information provided
by us. You are advised to consult your own professional advisors.
Step-by-Step Guide to Use Singapores FTAs with Australia for Trade in Goods














































Step 2: Know your products HS Code

Please refer to Singapore Customs at
http://www.customs.gov.sg/leftNav/trad/per/Classification+of+Goods.htm

Please verify your products HS Code with the importer or importing customs
Step 3: Check that the product is offered tariff concessions in the FTA

You can simply enter your products HS code in the IE FTA Tariff Calculator at
http://www.fta.gov.sg/calculator/tariff-calculator-step1.aspx

Alternatively,
i) To find out the latest MFN Rate (i.e. import duty rate without using FTAs), please refer to
Australian Customs and Border Service at http://www.customs.gov.au/tariff/tariff.asp

ii) Compare the MFN rate with the preferential rates offered in the FTA
- For SAFTA, all Singapore products entering Australia will enjoy zero import duty.
- For AANZFTA, please refer to the tariff schedule at http://www.aseansec.org/22262.htm
Step 4: Check that your product meets the Rule of Origin (ROO)

You can simply enter your products HS code in the IE FTA Tariff Calculator at
http://www.fta.gov.sg/calculator/tariff-calculator-step1.aspx

Alternatively,
- For SAFTA, please check if your products HS code is listed in
http://www.fta.gov.sg/safta/fta_safta_agreement_annex2d.pdf for Regional Value Content
(RVC) of 30% ex-factory. If not, please use the RVC (50%) ex-factory.
- For AANZFTA, please refer to http://www.aseansec.org/22200.pdf for the Product Specific
Rule. If your product is not listed, please use RVC (40%) FOB or Change in Tariff Heading.
Step 1: Know the flow of your product and business model

Use Singapore-Australia FTA
(SAFTA)


Use ASEAN-Australia-New Zealand FTA
(AANZFTA)


Direct shipment only
Direct shipment,
Back to Back arrangement or
Third Party Invoicing
No tariff
concessions
No
Step 5: Apply for Preferential Certificate of Origin (PCO)

Please refer to the steps and forms in the Singapore Customs at
http://www.customs.gov.sg/leftNav/trad/Certificates+of+Origin.htm

Upon approval, sign and send the original PCO to importer to claim tariff concessions

Yes
Cannot Use
No
Yes
* Please refer to the following pages for more details
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not constitute professional
advice. IE Singapore or its employees shall not be held responsible for any consequence arising from your reliance on any information provided
by us. You are advised to consult your own professional advisors.
Step-by-Step Guide to using SAFTA to export to Australia

Step 1: Know the flow of your product and business model

Direct Shipment:



You can use SAFTA for product shipped directly from Singapore to Australia only. The exporter needs to send a signed
original Preferential Certificate of Origin (PCO) to the importer for it to claim tariff concessions from the importing
customs.


Step 2: Know your products HS Code

HS Code is required to find out your products Most Favored Nation (MFN) rate, FTA preferential rate and Rules of
Origin (ROO).
HS Code is standardised by WTO at the six-digit level and can be classified according to the number of digits. For
example, for the product Malt (Roasted) with the HS Code of 1107.20.00,
Its Chapter (i.e. first 2 digit) is 11
Its Headings (i.e. first 4 digit) is 1107
Its Sub-headings (i.e. first 6 digit) is 1107.20
Countries can introduce national distinctions with more digits beyond the six-digit level for their tariff collection
and other purposes. As such, it is very important to verify your HS Code with the importer or importing customs.
Companies can use the tools in http://www.customs.gov.sg/leftNav/trad/per/Classification+of+Goods.htm to find
their HS Code. If you are still unsure, you can provide a brief description of their product and its uses to Singapore
Customs at customs_roo@customs.gov.sg or 63776360/6361 for it to advise you on the HS code.


Step 3: Check that the product is offered tariff concessions in the FTA

MFN rate is the existing import duty that a member of World Trade Organization (WTO) offers to all members. This
will be the import duty companies are subject to if they do not use FTAs. If the product has an MFN rate of 0, there
is no tariff savings and FTAs may not be necessary unless your importer requests for a PCO.

To check if there is tariff concession and a need for PCO, you can simply enter your products HS code in the IE FTA
Tariff Calculator at http://www.fta.gov.sg/calculator/tariff-calculator-step1.aspx

Alternatively, to find out the latest MFN Rate (i.e. import duty rate without using FTAs), please refer to Australian
Customs and Border Service at http://www.customs.gov.au/tariff/tariff.asp
Under SAFTA, all products with ROO in Singapore can enter Australia with zero import duty.
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not constitute professional
advice. IE Singapore or its employees shall not be held responsible for any consequence arising from your reliance on any information provided
by us. You are advised to consult your own professional advisors.
Step 4: Check that your product meets the Rule of Origin (ROO)

Rules of Origin are put in place to ensure that only goods originating from the countries involved in the FTA will
benefit from tariff concessions.

You can simply enter your products HS code in the IE FTA Tariff Calculator at
http://www.fta.gov.sg/calculator/tariff-calculator-step1.aspx
Alternatively, you can check for your products ROO using the flowchart below:













Formula for Ex-Factory Price
Regional Value Content (%) = (Singapore and Australia raw materials costs
x 100%
+ Direct labour cost
+ Direct overhead cost )
Ex-Factory Cost
Where Ex-Factory Cost = TOTAL material cost + Direct labour cost + Direct overhead costs
NOTE: All costs and profit assigned to one unit of the good

Outward Processing

For SAFTA only, the Rule Of Origin chapter acknowledges the unique production pattern of Singapore, whereby
certain production stages are outsourced to lower cost centres.

In the conventional Rule of Origin, only the final stage- that is stage 3- is considered. Under SAFTA, both stages 1
and 3 can be considered.


Is your product wholly obtained or manufactured within Singapore?


Yes
Qualify
Does your product falls in the list in
http://www.fta.gov.sg/safta/fta_safta_agreement_annex2d.pdf


No
Yes
(RVC) of 30% ex-factory
price
No
(RVC) of 50% ex-factory price
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not constitute professional
advice. IE Singapore or its employees shall not be held responsible for any consequence arising from your reliance on any information provided
by us. You are advised to consult your own professional advisors.


Step 5: Apply for Preferential Certificate of Origin (PCO)

The procedures are:
1) Register your factory with Singapore Customs
2) Submit manufacturing cost statement for approval
3) Apply for PCO
4) Sign on and send the original PCO to the importer

To download forms, please refer to http://www.customs.gov.sg/leftNav/trad/Certificates+of+Origin.htm .
The documents required to effect a claim for preferential tariff are as follows:
a) Original Preferential Certificate of Origin (PCO)
The original CO must be produced for the first shipment. The first shipment must occur within the first year of
issue of the PCO. For subsequent shipments, the importer can produce the photocopy of the PCO, which is
valid for 2 years for multiple shipments.
b) Exporters Declaration (ED)
An ED, quoting the related PCO number and stating that the details provided therein are true and correct,
must be produced for every shipment.
c) Letter of Confirmation (LC)
A LC is required only upon the request by Customs after importation. It is applicable for situations where the
exporter is not the producer or manufacturer of the goods. Issued by the manufacturer, the LC must include
reference to the evidence of sale between the manufacturer and the exporter, and must also quote the
related PCO number.
For details on operational procedures under SAFTA, please refer to the Singapore Customs Circular at
http://www.customs.gov.sg/NR/rdonlyres/F91DFA3C-C2E9-48EB-BF1E-43B5A9DD759B/13413/c0324.pdf.
Last Updated: Dec 2011