Singapore has established itself as a key hub for European investments in Asia, following comprehensive bilateral trade and investment negotiations, such as the European Union-Singapore Free Trade Agreement (EUSFTA), investment protection agreement, and digital trade agreement.
This strategic partnership has paved the way for streamlined shipping from European countries such as Germany, France, Italy, Denmark, Finland, Greece, and more to Singapore, significantly reducing trade barriers and enhancing logistical efficiency.
To leverage the strong relationship between Europe and Singapore, we’ve outlined a quick guide to help you optimise your shipping strategy and facilitate even smoother trade.
Understanding the demand for European goods
Singapore ranks as the European Union's second-largest trading partner within the Association of Southeast Asian Nations (ASEAN). In 2022, imports from Europe to Singapore reached S$38.3 million, according to CEIC’s data, emphasising the substantial trade activity between these two entities. Most EU exports include electronic equipment, machinery, pharmaceutical products, and cosmetics.
Notably, France was the leading exporter from the EU to Singapore in 2021. Key products that Singapore imports from France include cosmetics, perfumes, beverages, machinery, and electronic equipment.
Furthermore, Singapore's imports from France amounted to US$12.84 billion in 2022, according to the United Nations COMTRADE database on international trade. This substantial figure reflects the strong demand in Singapore for a diverse range of high-quality European goods, underlining the strategic importance of maintaining and enhancing these trade relations to foster economic growth and diversification in Singapore.
Strategies for successful Singapore customs clearance
Dive into these critical strategies to ensure smooth customs clearance for shipping from Europe to Singapore.
1. Understanding taxes and duties
Navigating the complexities of customs and excise duties is vital for those shipping from Europe to Singapore. These taxes are imposed on imported goods from the island nation to ensure compliance with local regulations and standards.
Additionally, goods entering Singapore are subject to a 9% Goods and Services Tax (GST). However, duties and GST’s are suspended for goods stored within Singapore’s Free Trade Zones (FTZs).
Accurately classifying imported and exported goods using the Harmonised System (HS) code search engine is also necessary. This classification helps determine applicable duties and whether the goods require special permits or face import restrictions.
Notably, the European Union-Singapore Free Trade Agreement (EUSFTA) has eliminated numerous trade barriers and import duties on EU-Singapore trade. This agreement has led to more efficient customs procedures and smoother trade flows.
2. Navigating prohibited and restricted goods
When importing goods into Singapore from Europe, it's vital to know which items are prohibited and which are restricted. Overlooking these rules can lead to serious consequences, such as hefty fines or even criminal prosecution.
Prohibited goods in Singapore include:
- Chewing gum
- Controlled drugs
- Endangered wildlife species and products derived from them
- Firecrackers
- Obscene publications and materials
- Pistols and other firearms
- Tobacco and imitation tobacco products
Restricted goods in Singapore, which require special approvals, consist of:
- Animals and their by-products
- Arms and explosives
- Bulletproof clothing
- Fresh fruits and vegetables
- Meat products
- Plants and their by-products
- Pharmaceutical medicines
- Seafood products
- Telecommunication and radio communication devices
- Toy guns
To legally import restricted items and avoid inadvertently bringing contraband items into Singapore, individuals and businesses must apply for the appropriate export/import licence or permit from the relevant Competent Authorities (CA).
Identify the CA listed next to the good’s HS code, then visit their website or contact them directly to understand the specific requirements and associated fees.
3. Ensuring proper documentation
2. ASEAN Briefing, Singapore and EU Sign Digital Trade Agreement
4. Trading Economics, EU Exports to SG, 2022
6. Trading Economics, SG Imports from France, 2022
7. Inland Revenue Authority of Singapore, 2022
8. ASEAN Briefing, Guide to Singapore Import and Export Procedures
