All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not constitute

professional advice.
IE Singapore or its employees shall not be held responsible for any consequence arising from your reliance on any information provided by us. You
are advised to consult your own professional advisors.

Step-by-Step Guide to Use Singapores FTAs with Australia for Trade in Goods













































Step 2: Know your products HS Code

Please refer to Singapore Customs at
http://www.customs.gov.sg/leftNav/trad/per/Classification+of+Goods.htm

Please verify your products HS Code with the importer or importing customs
Step 3: Check that the product is offered tariff concessions in the FTA

You can simply enter your products HS code in the IE FTA Tariff Calculator at
http://www.fta.gov.sg/calculator/tariff-calculator-step1.aspx

Alternatively,
i) To find out the latest MFN Rate (i.e. import duty rate without using FTAs), please refer to
Australian Customs and Border Service at http://www.customs.gov.au/tariff/tariff.asp

ii) Compare the MFN rate with the preferential rates offered in the FTA
- For SAFTA, all Singapore products entering Australia will enjoy zero import duty.
- For AANZFTA, please refer to the tariff schedule at http://www.aseansec.org/22262.htm
Step 4: Check that your product meets the Rule of Origin (ROO)

You can simply enter your products HS code in the IE FTA Tariff Calculator at
http://www.fta.gov.sg/calculator/tariff-calculator-step1.aspx

Alternatively,
- For SAFTA, please check if your products HS code is listed in
http://www.fta.gov.sg/safta/fta_safta_agreement_annex2d.pdf for Regional Value Content
(RVC) of 30% ex-factory. If not, please use the RVC (50%) ex-factory.
- For AANZFTA, please refer to http://www.aseansec.org/22200.pdf for the Product Specific
Rule. If your product is not listed, please use RVC (40%) or Change in Tariff Heading.
Step 1: Know the flow of your product and business model

Use Singapore-Australia FTA
(SAFTA)


Use ASEAN-Australia-New Zealand FTA
(AANZFTA)


Direct shipment only
Direct shipment,
Back to Back arrangement or
Third Party Invoicing
No tariff
concessions
No
Step 5: Apply for Preferential Certificate of Origin (PCO)

Please refer to the steps and forms in the Singapore Customs at
http://www.customs.gov.sg/leftNav/trad/Certificates+of+Origin.htm

Upon approval, sign and send the original PCO to importer to claim tariff concessions

Yes
Cannot Use
No
Yes
* Please refer to the following pages for more details
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not constitute professional advice.
IE Singapore or its employees shall not be held responsible for any consequence arising from your reliance on any information provided by us. You
are advised to consult your own professional advisors.

Step-by-Step Guide to using AANZFTA to export to Australia
Step 1: Know the flow of your product and business model

Direct Shipment:




Back-to-Back Arrangement:





Third Party Invoicing:




You can use AANZFTA for all three business models. This also means that products which are not manufactured in
Singapore but are still manufactured in an FTA partner country can still enjoy tariff concessions.

For example, under the back to back arrangement, goods are made in Malaysia, shipped to Singapore where there are
only minimal processes such as bulk-breaking and labeling before being sent to Australia. The Malaysia-based
manufacturer will apply for the PCO. With that, Singapore-based company can apply for a Back to Back PCO from the
Singapore Customs and sign and send the original copy to the Australia-based importer to claim tariff concessions. The
Back to Back PCO will not reveal the details of the manufacturer.

In another example, under the Third Party Invoicing arrangement, the goods are shipped directly from the Malaysia-
based manufacturer to the Australia-based importer but the invoicing is done through a third party in Singapore.
Please note that the PCO is sent directly from the manufacturer to the importer. As such, it will contain details of the
manufacturer. Therefore, third party invoicing is usually for trade between headquarters and their subsidiaries.
(i.e. FormAANZ)
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not constitute professional advice.
IE Singapore or its employees shall not be held responsible for any consequence arising from your reliance on any information provided by us. You
are advised to consult your own professional advisors.


Step 2: Know your products HS Code

HS Code is required to find out your products Most Favored Nation (MFN) rate, FTA preferential rate and Rules of
Origin (ROO).
HS Code is standardised by WTO at six-digit level and can be classified according to the number of digits. For
example, for the product Malt (Roasted) with the HS Code of 1107.20.00,
Its Chapter (i.e. first 2 digit) is 11
Its Headings (i.e. first 4 digit) is 1107
Its Sub-headings (i.e. first 6 digit) is 1107.20
Countries can introduce national distinctions with more digits beyond the six-digit level for their tariff collection and
other purposes. As such, it is very important to verify your HS Code with the importer or importing customs.
Companies can use the tools in http://www.customs.gov.sg/leftNav/trad/per/Classification+of+Goods.htm to find
their HS Code. If you are still unsure, you can provide a brief description of their product and its uses to Singapore
Customs at customs_roo@customs.gov.sg or 63776360/6361 for it to advise you on the HS code.


Step 3: Check that the product is offered tariff concessions in the FTA

MFN rate is the existing import duty that a member of World Trade Organization (WTO) offers to all members. This
will be the import duty companies are subject to if they do not use FTAs. If the product has an MFN rate of 0, there is
no tariff savings and FTAs may not be necessary unless your importer requests for a PCO.

To check if there is tariff concession and a need for PCO, you can simply enter your products HS code in the IE FTA
Tariff Calculator at http://www.fta.gov.sg/calculator/tariff-calculator-step1.aspx

Alternatively, to find out the latest MFN Rate (i.e. import duty rate without using FTAs), please refer to Australian
Customs and Border Service at http://www.customs.gov.au/tariff/tariff.asp
For exports of goods to Australia and ASEAN member states under AANZFTA, you may find their FTA preferential
rates in the legal text section of http://www.aseansec.org/22262.htm.

If your product is not listed in the tariff reduction schedule, it may be a sensitive product to the importing country
and hence, is excluded from tariff concession.
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not constitute professional advice.
IE Singapore or its employees shall not be held responsible for any consequence arising from your reliance on any information provided by us. You
are advised to consult your own professional advisors.
Step 4: Check that your product meets the Rule of Origin (ROO)

Rules of Origin are put in place to ensure that only goods originating from the countries involved in the FTA will
benefit from tariff concessions.

You can simply enter your products HS code in the IE FTA Tariff Calculator at http://www.fta.gov.sg/calculator/tariff-
calculator-step1.aspx

Alternatively, you can check for your products ROO using the flowchart below:














Local Value Add (%) =
Formula for Free-On-Board (FOB)
(Australia and ASEAN raw materials costs
x 100%
+ Direct labour cost
+ Direct overhead cost
+ Profit

+ Inland transportation cost)

FOB Price
Where FOB price = TOTAL material cost + Direct labour cost + Direct overhead costs + Profit +
Inland transportation cost

NOTE: All costs and profit assigned to one unit of the good



Is your product wholly obtained or manufactured within an FTA
partner country?


Yes
Qualify
Does your product falls in the list in
http://www.fta.gov.sg/aanzfta/annex%202%20-%20psr.pdf ?


No
Yes
Please follow Product Specific Rules
No
(RVC) of 40% FOB or Change in Tariff Heading
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not constitute professional advice.
IE Singapore or its employees shall not be held responsible for any consequence arising from your reliance on any information provided by us. You
are advised to consult your own professional advisors.



Change in Tariff Heading
Change in Tariff Classifications happens when all the raw materials from non-FTA partner countries experience a
change in either first two digits (i.e. Chapter), first four digits (i.e Heading) or first six digits (i.e Sub-Heading).

Under AANZFTA, the general Rules of Origin require a Change in Heading (i.e. four-digits).

Looking at the example below, the product- dyed woven fabric- will not be able meet it because there is no change in
the first four digits at HS 5513. Thats because it is really just a simple dye process.



Product Specific Rule (PSR)
Process Rule refers a specific production process as specified in the agreement. This usually refers to
chemical or textile products.

For example, the PSR for Mens or boys shirts, knitted or crocheted (HS 6105.90) are as follow:
Regional Value Content of not less than 40% FOB provided that the good is cut or knit to shape and
assembled in the territory of one more of the parties or
Change in Chapter (i.e. 2 digit level)


Step 5: Apply for Preferential Certificate of Origin (PCO)

The procedures are:
1) Register your factory with Singapore Customs
2) Submit manufacturing cost statement for approval
3) Apply for PCO
4) Sign on and send the original PCO or Back to Back PCO to the importer

To download forms, please refer to http://www.customs.gov.sg/leftNav/trad/Certificates+of+Origin.htm .

For details on operational procedures under AANZFTA, please refer to the Singapore Customs Circular at
http://www.customs.gov.sg/NR/rdonlyres/56F09EE4-54CA-405F-AFCF-
810B3A43641F/25834/CircularNo222009AANZFTAImport.pdf .
Last Updated: Dec 2011

E.g. Raw Material Production
Process
Finished Product Origin?
1 Woven fabric of polyester
staple fibres, plain weave
(HS 5513.11)
Dyed woven fabric of polyester
staple fibres, plain weave
(HS 5513.21)
No at 4 digit level;
Yes at 6 digit level