Presentation on theme: "Introduction to Singapore Customs"— Presentation transcript:
1 Introduction to Singapore Customs Presented by:Loh Fook MengADG (Compliance)
2 Outline Singapore Customs – About Us Our Organisation Our Vision, Mission, Motto (VMM) and ValuesOur Roles and FunctionsOur Customers and PartnersOur Challenges Ahead
3 What is Customs? What is Customs? According to World Customs Organisation Glossary of Terms:“The Government Service which is responsible for the administration of Customs law and the collection of import and export duties and taxes and which also has responsibility for the application of other laws and regulations relating, inter alia, to the importation, transit and exportation of goods.”In Singapore, Singapore Customs (SC) is separated from the Immigration & Checkpoints Authority (ICA)
9 Legislations We Administer GST ActCustoms ActFree Trade Zones ActOwned by MOFOwned by MFARegulation of Imports & Exports ActChemical Weapons (Prohibition) ActOwned by MTIStrategic Goods (Control) Act
10 Our Operating Locations Customs Corporate HQ is located at Revenue House.Customs Officers are also deployed at the following places:Customs Operations Command (COC)Changi Airport Terminal 1Changi Airport Terminal 2Changi Airport Terminal 3 Budget TerminalSingapore Cruise CentreTanah Merah Ferry TerminalTuas CheckpointWoodlands Checkpoint
11 Examples of Operating Locations Tanah Merah Ferry TerminalChangi Airport T3Revenue HouseT3 Customs Duty OfficeWoodlands CheckpointCustoms Operations CommandT3 GST Refund (Landside)
13 Our Vision, Mission and Motto (VMM) We make trade easy,fair and secureVISIONA leading Customs that advances Singapore’s economy by assuring the integrity of the trading systemAs the guardian of Singapore’s trade, we uphold our laws to build trust to facilitate trade and protect revenueMISSION
14 Our Values Integrity Teamwork Commitment Courage Responsiveness Carrying out operations in an impartial and fair manner.Making fair and honest decisions.Upholding honesty and fairness in actions even when it is inconvenient to do so.TeamworkPutting aside personal differences to achieve the organisation’s goals.Sharing knowledge to enhance the work of other officers or branches.Using one’s capabilities or knowledge to help the team to achieve its goal.CommitmentTaking the initiative to go the extra mile for customers and colleagues.Putting the organisation’s interests or needs above self.Going beyond job scope to ensure issues are resolved.Dedication to seeing a task to the end.CourageAdmitting mistakes readily and taking steps to remedy the situation.Daring to raise controversial ideas so long as they are for the organisation’s good.ResponsivenessAnticipating changes and picking up trends, opportunities, risks and threats quickly.Addressing issues proactively, i.e. not waiting for someone else to take action. Acting promptly on enquiries and requests from both internal and external customers.
20 Single Window for Trade Handling the administration of TradeNet® System, including managing vendors and Controlling AgenciesTradeNet®TradeNet® - World’s 1st single-window electronic platform for trade declaration.Made its debut in 1989 as the world’s first nationwide electronic data interchange system for clearance of trade documentation. The last major system upgrade was conducted in October 2007 (Version 4).
21 Single Window for Trade S’pore CustomsCA1CA3CA4CA5TradersAir Cargo AgentsShipping AgentsFreight ForwardersFrom thisTradeNet®TradersAir Cargo AgentsShipping AgentsFreight ForwardersS’pore CustomsCA1CA2CA3CA4CA5To this2121
22 Single Window for Trade Agri-food & Veterinary AuthorityInternational Enterprise Singapore BoardNational Environmental AgencyCentral Narcotics BureauMedia Development AuthorityInfoComm Development Authority of SingaporeSingapore Customs[incl National Authority (CWC)]HealthSciencesAuthoritySingapore Police ForceMinistry of ManpowerSingapore Civil Defence ForceMinistry of Health34 ControllingUnits
23 Single Window for Trade Agri-food & Veterinary AuthorityInternational Enterprise Singapore BoardNational Environmental AgencyCentral Narcotics BureauMedia Development AuthorityInfoComm Development Authority of SingaporeSingapore Customs[incl National Authority (CWC)]HealthSciencesAuthoritySingapore Police ForceMinistry of ManpowerSingapore Civil Defence ForceMinistry of HealthSingle formSingle submissionSingle interfaceSingle process
24 Single Window for Trade Automatic bank account deductionBy cheque and cash8. Customs duties collectionSame electronic doc routed to controlling agencies for processingSeparate documents sent to different controlling agencies for processing7. Controlled goods handlingSame electronic document routed to customs for processingSeparate documents for customs processing6. Dutiable goods handlingWithin 10 minsFrom 4hrs to 2-7 days5. Turnaround time for approvalSingle copyMultiple copies4. Copies of documentNO trips requiredAt least 2 trips or more3. Trips per controlling agency per documentAvailable 24 hrsWithin office hours2. Time of submissionElectronically from comforts of office (or home)Via expensive dispatch clerks/ couriers1. Submission of documentTradeNet® BenefitPrevious Manual processCharacteristicsSource: APEC Economies: Breaking down the barriers, Shanghai 2001 (modified)9. Trade Documentation FeeS$10 per documentS$2.88 per application
25 Single Window for Trade Current Volume & PerformanceMore than 8,000 users from 2,600 subscribersAbout 30,000 declarations per dayMore than 9 million declarations annuallyCollected over S$7b duties and GST in FY2009100% of customs declarations processed and approved via TradeNet®100% of the collections are made electronically through Inter-Bank GIRO90% of permits processed within 10 minutes
26 Single Window for Trade A multi-agency initiative led by SC, IDA and EDB.A neutral and secure platform that facilitates the exchange of information within the trade and logistics community, and with the governmentLegend:JP – Jurong PortTX - TradeXchange®VAS – Value added Service Providers
27 Helping Our Exporters Grow Determining Rules of Origin (ROO) for preferential treatment & providing advice on valuation and classification of goodsLeads ASEAN customs authorities to develop the ASEAN Harmonised Tariff Nomenclature (AHTN)The AHTN is a major step in facilitating trade among ASEAN countries while forging closer economic cooperation
28 Free Trade Agreements (FTA) SC supports in negotiating the Customs Chapter of the various FTAs.SC also supports MTI in the rules of origin negotiations.These work are done to help improve the market access of our exporters.We have currently 20 FTAs in force.We collaborate closely with IE Singapore to conduct outreach to exporters to fully benefit from FTAs.In 2009, companies based in Singapore have enjoyed more than S$700 million in tariff savings.
30 Delivering Schemes that Work Suspending GST - Zero GST Warehouse SchemeDeveloping Niche Industries – Temporary Import SchemeFrom “Multiple Licences to One” – Apex LicenceBusiness Times, 19 August 2008
31 Securing Supply Chains Complex nature of today’s trade system means that all components of system are dependent upon one another for safe and secure trade.The WCO SAFE Framework of Standards secures the movement of global trade in a way that facilitates the movement of that trade.
32 Securing Supply Chains National Authority for Secure Trade Partnership (STP) programmeSTP provides companies with a framework to guide development, implementation, monitoring and review of company's supply chain security measuresBenefits include enhanced visibility, better branding, less inspection, expedited clearance (under Mutual Recognition Arrangements)Singapore Customs Director-General Mr Fong Yong Kian signing Mutual Recognition Arrangements with Canada Border Services Agency and Korea Customs Service at the WCO Council Sessions in June 2010
33 Securing Supply Chains APEC Trade Recovery ProgrammeEndorsed by APEC leaders in Sydney in 2007, APEC Trade Recovery Programme (TRP) establishes principles for ensuring swift trade restoration among APEC economies in the immediate aftermath of a terrorist attack on the global supply chainFast trade recovery is of paramount importance to international trade
34 The 4 Informal Export Control Regimes Exercising control over trade in strategic goodsSecurity and Peace – Preconditions for trade to flourishPrevent proliferation of Weapon of Mass Destruction (WMD)Strategic Goods (Control) Act regulates trade and transfer in sensitive goods and technologyAdopted Full Lists of the 4 Informal Export Control RegimesControl with Facilitation – Strategic Trade SchemeNational Authority for Chemical Weapons Convention (NA, CWC)The 4 Informal Export Control RegimesMissile Technology Control Regime(MTCR)The Australia Group(AG)Wassenaar Arrangement(WA)Nuclear Suppliers Group(NSG)
37 Compliance Framework Customs Compliance Framework (2) Deterrence through Effective Enforcement and Penalties(1) Timely Detection of Violations through Risk Management TechniquesCustomsComplianceFramework(3) Education through Outreach(4) Monitoring Compliance Status
38 Key Roles of Compliance Division Conducting compliance checks on trade documentsConducting informed audits on companies customs requirements, and conducing stuffing and unstuffing functionsConducting investigations into revenue fraudAssessing the risk level of SC's external business processes and monitoring and targeting of companies for revenue evasionSetting incentives and penalties to promote voluntary complianceConducting outreach and education to enhance compliance capability of trading community
39 Compliance EffortsIn the last 2 years, there has been an increase in the number of parallel importers (PI) and growing market share of Motor Vehicle imports by PI.200420072008No. of Parallel Importers66142187% of Total MV Imports by Parallel Importers4%20%24%Suspected cases investigated and errant traders prosecuted in court.Message sent to parallel importers that fraud will not be tolerated.
40 Errant Traders - Parallel Import of Motor Vehicles Case 1Straits Times – 16 Jan 2009
41 Errant Traders - Parallel Import of Motor Vehicles Case 2
42 Errant Traders - Parallel Import of Motor Vehicles Case 3
43 Intelligence & Investigation Division 6 BranchesOperations Policy and Development BranchOperations Management BranchIntelligence BranchSpecial Investigation BranchSuppression & Community Engagement BranchProsecution Branch
44 Key Roles Of Intelligence & Investigation Division Providing intelligence supportUndertaking functions on strategic and policy issues as well as the development of its computer application systemsFocusing on improvements to the investigation and enforcement operations by identifying systemic lapses and recommend corrective actions and guidanceCoordinating interdiction of IPR infringing goods at the bordersConducting surveillance and investigations to suppress duty evasion and syndicate smuggling
45 Key Roles Of Intelligence & Investigation Division Conducting analysis to identify companies suspected of commercial fraudConducting risk review and working with stakeholder branches to formulate strategies and implement control measures on risk elements identifiedHandling prosecution cases and providing legal advice on arrest and Customs cases.Driving community engagement to heighten public education and maintain public confidence in the enforcement of customs laws.
46 Contraband Cigarettes Enforcement Incentive to smuggle due to high duty rate on cigarettes and huge price difference compared to neighbouring countriesMarlboro retail price/pack (S$)2.701.781.331.273.5111.601.583.100.92Source: Philips Morris July 2008
47 Contraband Cigarettes Enforcement Multi-pronged strategies to tackle demand and supply side of problem:Closing regulatory gaps to prevent abuse of customs procedure for smugglingRisk profiling to interdict smuggling via commercial consignmentsIncreased quantum of composition sums and having tougher prosecution guidelinesIncreased resources to combat smuggling, including engaging CISCO and leveraging on other enforcement agenciesEnhanced technological support for enforcement operationsPublicity campaign against contraband cigarettesNew marking requirement on individual sticks of cigarettes
51 Collaboration with Other Agencies ICA detects smuggling through checkpointsJoint operations and intelligence sharing with other enforcement agenciesCoordinate with MOM, ICA and MOE on foreign offendersCoordinate with NEA, MEWR and ICA on illicit shipments of Environmentally Hazardous Goods
53 Key Roles Of Checkpoint & Corporate Service Division Providing essential customs services at the major checkpointsPlanning and providing IT services to meet the needs of the department and create greater value in customs service deliveryProviding the functions of office administration, facilities management and security
54 Efficient and Customer-centric Checkpoint Services Providing essential customs services at the major checkpointsCollection of duty and GST payment from travellers.Facilitating tourist GST refund of over $125 million in 2009.
57 Key Roles Of Policy & Planning Division Driving SC's strategic and corporate planning processes and plans, and policy formulationConducting policy reviewsPromoting technical cooperation to further national interestsParticipating in international/regional customs meetings and Free Trade Agreement negotiations
58 Contributions to International Trade and Customs Community Chair of APEC 09 Sub-Committee on Customs Procedures (SCCP)Chair of WCO and APEC Special Group on drafting of Trade Recovery annex to the SAFE Framework of StandardsChair of ASEAN Customs Procedures and Trade Facilitation Working Group (CPTFWG)
59 Corporate Development Division 4 BranchesCommunications BranchFinance BranchHuman Resource Branch CorporateCompetency Development Branch
60 Key Roles of Corporate Development Division Managing SC’s corporate reputation and facilitating internal and external stakeholder communications.Managing SC’s monetary resources and providing full range of financial management servicesAttracting and retaining the best talent for SC through implementation of effective HR practicesStrengthening SC staff competencies through various competency-based specialised training
61 Internal Audit Branch Internal Audit Branch Evaluating the adequacy and effectiveness of internal controls and ascertain whether policies and guidelines are complied with.
65 Our Customers Our Customers Trading Community Travelling Community Importers/ExportersManufacturersFreightForwardersLicenseesArrivingTravellersDepartingTravellersApprox 90,000 entities registered with SC to engage in import/export activities.
66 Customer Engagement 24X7 Call Centre (outsourced to CrimsonLogic) Regular dialogue sessions with tradersAccount Managers for traders under various schemes/programmesKey Customers ProgrammeStrategically engage and enhance service experience of key customers through assignment of relationship managersTraining the Trading Community:- Customs Competency Programme for Businesses (CCPFB) and Strategic Goods Control Programme for Businesses (SGCPFB)
68 Importance of Fostering Partnerships Greater rapport and understanding of each other’s needs and challenges.Leveraging on each others’ resources and expertise.Sharing timely and reliable intelligence and information.Streamlining existing and/or future working procedures.Gathering innovative ideas and new growth opportunities for the future.
70 Singapore’s Success: A World-Class Global Trade Hub Singapore lives by international trade since its founding in 1819.Trade has been and will continue to be a key pillar in Singapore’s economy.In 2009, Singapore total trade volume reached $747 billion.Ranked 1st in Ease of Doing Business and Trading Across Borders by The World Bank Report 2010.Overall, Singapore Customs contributes to Singapore’s trade growth.
71 Our Challenges A Fast-Changing Landscape International trading environment has become more complex.Security is a world-wide concern.
72 Our Challenges Maintaining Singapore’s international competitiveness. Striking a good balance between being business-friendly and maintaining trust and integrity of our trading system.Collaborating with other countries to enhance trade security, e.g. through more mutual recognition arrangements to facilitate Singapore’s exports.
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