On 20 December 2024, the Ministry of Trade and Industry (“MTI“) and Singapore Customs (“Customs“) announced that as part of ongoing efforts to work with businesses to address key challenges, including regulations, they have collaborated to facilitate smoother cross-border movement of goods. Specifically, Customs is introducing a new procedure for land intermodal transhipments.
Currently, goods transhipped through Singapore’s land checkpoints at Woodlands and Tuas are treated as imports for re-export. This requires traders to apply for two separate permits: one for importation and another for exportation.
From 1 January 2025, traders need to apply for only a single transhipment permit for land intermodal transhipments, i.e. Through Transhipment with Inter-Gateway Movement (“TNP-TTI“). This new procedure is expected to benefit businesses in terms of cost savings and time efficiency. MTI and Customs submit that businesses may save up to S$40 per transhipment, potentially resulting in annual industry-wide savings of up to S$2 million; and that the time required to prepare customs permits will be reduced by 50%.
Entities who wish to engage in transhipment activities in Singapore and apply for transhipment permits on their own are required to: (i) register with the Accounting and Corporate Regulatory Authority (“ACRA“) or the relevant Unique Entity Number (“UEN“) Issuance Agency to obtain a UEN; (ii) activate the entity’s Customs Account; and (iii) register with Customs as a Declaring Agent and update the entity’s business activity code (i.e. SSIC Codes) via ACRA’s BizFile to be a business activity code under shipping, airline or freight. The relevant transhipment permits must be obtained before the transhipment takes place. Traders should submit supporting documents through TradeNet during the application of the TNP-TTI permit. A security deposit is payable.
This initiative supports Malaysia and Singapore’s endeavours under the Johor-Singapore Special Economic Zone to strengthen economic cooperation and improve movement of goods between Singapore and Johor. To learn more about the Johor-Singapore Special Economic Zone, please see our January 2025 Legal Update titled “Singapore, Malaysia Sign Agreement on Johor-Singapore Special Economic Zone – to Boost Economic Cooperation and Attract Investments” and our December 2024 Legal Update titled “The New Southeast Asia Economic Hub: Johor-Singapore Special Economic Zone“.
Click on the following links for more information (available on the Customs website at www.customs.gov.sg):
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