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Reduced custom duties for imports from Singapore

In this issue:

The free trade agreement between the European Union and the Republic of Singapore will enter into force starting 21 November 2019

At the time of entry into force, over 80% of the goods originating in Singapore will benefit from reduced or zero customs duties when imported into the EU. For the rest of the products, the customs duties will be gradually removed within three or five years, depending on the category they belong to.

Among the goods that will have customs taxes reduced or gradually removed, we mention:

  • bicycles (from 14%-15% to 0 %);
  • LCD TV (from 14% to 0%);
  • sports footwear (from 16,9% to 0%);
  • washing machines (from 2,2% to 0%);
  • tires (from 4% - 4,5% to 0 %);
 

The proof of origin, which must be used according to the agreement, is the “origin statement” that can be issued on the invoice or on any other commercial document. Thus, for being able to issue proofs of origin, the importers/exporters have to be registered in the EU Registered Exporter system (REX).

What does this mean for you?

If you import goods originating from Singapore, starting with 21 November 2019, you can benefit from reduced or even zero customs duties. We recommend that you require your suppliers to provide you a proof of origin and to ensure that they are registered in REX system. 

If you export goods originating from EU towards Singapore, we recommend that you register in the REX system as soon as possible in order to be able to issue the origin declaration.

Prepared by:
Mihai Petre – Director, Indirect Tax
 
For additional information, please contact:
Alex Milcev, Partner – Head of Tax&Legal

 

Ernst & Young SRL

Bucharest Tower Center Building,

22nd Floor, 15-17 Ion Mihalache Blvd.,

Sector 1, 011171, Bucharest, Romania

Tel: (40-21) 402 4000, Fax: (40-21) 310 7124

Email: office@ro.ey.com

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