As global trade expands, the relationship between Spain and Singapore stands out, reflecting a dynamic synergy bolstered by Spain's varied export offerings, such as olive oil, and Singapore's role as a strategic global trading hub. With an extensive network of over 30 trade agreements and annual trades surpassing €550 billion, as reported by the European Commission, Singapore is pivotal for Spanish exporters to access substantial opportunities to tap into wider Asian markets.
This guide outlines comprehensive strategies and import procedures to facilitate successful shipping from Spain to Singapore so that exporters can take full advantage of the flourishing trade opportunities, ensuring seamless transactions and maximising profitability in both markets.
Understanding the Singapore market landscape
Singapore's strategic location at the heart of Southeast Asia and its state-of-the-art infrastructure significantly enhance its capability as a global logistics hub. Since 1986, Singapore has maintained its status as the busiest port in the world in terms of shipping tonnage, with a staggering annual average of 140,000 vessel calls. This connectivity extends through about 200 shipping lines, offering links to over 600 ports globally.
What does Singapore import? It imports a wide range of goods, with the top categories being machinery and transport equipment, manufactured articles, and chemicals and chemical products. Additionally, Singapore imports more than 90% of its food from over 170 countries and regions, underscoring its reliance on global trade for essential commodities.
The growing Spain-Singapore trade relationship is notably enhanced by the European Union-Singapore Free Trade Agreement (FTA), known as the EUSFTA. This agreement facilitates significant import tax reductions in customs duties and streamlines the bureaucracy that European companies typically face when exporting to Asian markets. This agreement also eradicates trade obstacles for key sectors like electronics, food products, and pharmaceuticals and opens up Singapore’s market for EU services in transport and telecoms. The resultant increased market access creates substantial opportunities for Spanish businesses to not only export to Singapore but also to leverage the country as a launching pad to broader Asian markets.
Strategies for successful customs clearance
Effective customs clearance is pivotal in shipping from Europe to Singapore. Here are the key areas to focus on, particularly in shipment preparation:
1. Understanding taxes and duties:
Under the EUSFTA, the customary Goods and Services Tax (GST) rates that Singapore imposes on imported goods are reduced or even eliminated, depending on the type of goods. This adjustment in tariffs facilitates more economical imports from Spain.
To take advantage of reduced or eliminated tariffs under the EUSFTA, it is crucial for Spanish exporters to ensure that their products genuinely originate from the EU. This means the products must be either wholly obtained or sufficiently processed within the EU. Additionally, there may be specific allowances for minor non-originating materials used in the manufacture of the products. Exporters should thoroughly review the agreement or seek expert advice to understand all requirements and ensure compliance to benefit from these lower tariffs.
Accurately classifying goods using the Harmonized System (HS) codes is essential for applying the correct tariffs and making the most of the EUSFTA benefits. Exporters should refer to the Committee of Customs of the Free Trade Agreement between the European Union and the Republic of Singapore for detailed guidelines on how to correctly classify their products. Proper classification not only ensures compliance with customs regulations but also facilitates the smoother processing of shipments, reduces the risk of delays, and prevents potential penalties for misdeclaration.
2. Navigating prohibited and restricted goods
Understanding Singapore’s stringent regulations on prohibited goods and contraband items is crucial. Spanish exporters must ascertain whether their goods fall under these categories using the Singapore Customs’ HS/CA Product Code Search Engine. Certain items might require special attention or permits, and businesses must navigate these regulatory waters carefully to avoid legal and logistical complications.
Navigating the procedure for obtaining necessary cargo clearance permits and import licences for regulated goods entering Singapore involves a detailed application process. Exporters must first identify whether their goods require specific permits through the Singapore Customs’ HS/CA Product Code Search Engine.
Once identified, permit application can be submitted online via Singapore's TradeNet system. This system integrates import, export, and trans-shipment documentation processing and allows for a streamlined approval process. Exporters must provide complete and accurate information regarding their goods, as any discrepancies can lead to delays in cargo clearance or denials of permits, affecting the overall shipping timeline and potentially incurring additional costs.
3. Ensuring proper documentation
Proper documentation is the cornerstone of successful international shipping to Singapore, ensuring compliance and facilitating efficient customs clearance. Key documents involved in the shipping process include:
- Bill of Lading: A document between the shipper and the carrier that details the type, quantity, and destination of the goods being carried while serving as a shipment receipt.
- Commercial Invoice: This document provides a comprehensive view of the goods being exported, including their value, which is used by Singapore’s customs to determine duties and taxes.
- Packing List: Supplements the commercial invoice by detailing the contents of each package, providing information about the weight and volume of the goods, which helps manage the load and ensure the correct handling of shipments.
- Certificate of Origin: Certifies the country in which the goods were manufactured.
For international shipments from Spain to Singapore under the EUSFTA, the Statement on Origin must be included on the invoice or another commercial document that describes the goods in sufficient detail to enable their identification. Additionally, when goods are stored in licensed warehouses, Spanish exporters must submit a duly-declared In-Payment Permit, commercial invoice, and Bill of Lading to local customs before the goods can be released.
With all the above documents, ensuring accuracy and completeness is crucial for facilitating a smooth import procedure. Accurate documentation not only helps prevent delays during customs clearance but also minimises the risk of penalties for non-compliance with import regulations.
4. Mastering packaging requirements
Proper packaging is essential for ensuring goods arrive in excellent condition and comply with Singapore's stringent import standards. Here are the top five practices for packaging that every export product should follow:
- Use durable materials: Select high-quality, sturdy materials that can withstand the rigours of international shipping.
- Waterproof packaging: Ensure that packaging protects goods from moisture during transit, particularly for sea shipments.
- Secure sealing: Use strong seals and tamper-proof packaging to secure contents, reducing the risk of theft or damage.
- Adequate cushioning: Provide sufficient cushioning around items to protect them from impacts and vibrations during handling and transport.
- Clear labelling: Include detailed labelling on each package, specifying contents, handling instructions, and destination details.
Aside from these general guidelines, detailed labelling is particularly crucial as it helps meet Singapore's regulations and facilitates customs and inspection processes. There are specific requirements for exports such as food, medicinal products, electrical and electronic products, and even everyday items like children’s products, apparel, and furniture. Accurate and comprehensive labelling ensures that all products are handled appropriately throughout their journey and comply with all import regulations, avoiding delays and potential fines.
Partnering with logistics experts: DHL Express
Choosing the right logistics partner is necessary for navigating the complexities of global shipping. Providers like DHL Express facilitate efficient and reliable shipping from Spain to Singapore, helping businesses manage the intricacies of customs clearance and optimising supply chains.
DHL Express offers a host of customer-focused services designed to make shipping to Singapore as efficient and trouble-free as possible. This includes everything from detailed tracking and scheduling to ensuring compliance with shipping regulations. Additionally, DHL Express leverages free trade agreements, like the EUSFTA, to help businesses seize opportunities in the ever-changing global marketplace.
Open a DHL account today to streamline your shipping from Europe to Singapore and gain a competitive edge in international trade.
