Approved Contract Manufacturer and Trader (ACMT) Scheme

The ACMT Scheme is a scheme designed to relieve businesses that have substantial business with non-GST registered overseas customers (e.g. local contract manufacturers) of the need to account for GST on value added activities performed on the goods of such customers.

The scheme was previously available to contract manufacturers within the semi-conductor and printing industries only. From 1 Oct 2011, the scheme has been extended to contract manufacturers of Active Pharmaceutical Ingredients (APIs) in the biomedical industry. Contract manufacturers in other business segments in the biomedical industry will be considered for the ACMT scheme on a case-by-case basis.

As announced by the Minister of Finance in his 2011 Budget Statement, the benefits of the ACMT Scheme have also been enhanced. The enhanced benefits take effect from 1 Oct 2011.

On this page:
Benefits of ACMT Scheme
Applying for the scheme
List of persons approved under ACMT Scheme 

Benefits of ACMT Scheme

If you are under the scheme, you enjoy the following benefits:

• You can disregard the supply of value added service (e.g. processing, assembly and testing services) to your non-GST registered overseas client if the goods you have treated/ processed are:
  
  
  • exported;
  • delivered to another ACMT person; or
  • delivered to the final customer of the overseas client.

  Consequently, no GST is chargeable on the fees charged to your overseas client.
  
  

• You can enjoy import GST suspension for the following scenarios:
  • Importation of own goods in the course or furtherance of your business;
  • Importation of goods if you are selling the goods in the capacity as a local agent of an overseas person;
  • Importation of goods if you are exporting the goods (e.g. back to the overseas person) and satisfy other requirements for section 33A agent in the GST Guide on Imports  (356KB); and
  • Importation of goods (for example, raw materials) consigned to you by your overseas client on which value added activities are performed under ACMT scheme.
    
    

Enhanced Benefits from 1 Oct 2011 

• You can disregard the supply of value added service relating to failed or excess productions, to your non-GST registered overseas client if the goods you have treated/ processed are:
  
  
  • exported; or
  • delivered locally to a waste management vendor* for disposal or destruction at no consideration.

  Consequently, no GST is chargeable on the fees charged to your overseas client.
  
  * In the event that you self-destroy or self-dispose the failed or excess productions instead, you should write in to seek the Comptroller's confirmation that you can disregard your supply of value added service relating to those goods. Please provide details of the destruction/ disposal process and supporting documentation that you will maintain.
  
  

• You can claim the GST incurred on goods (for example, raw materials) locally purchased by your non-GST registered overseas client and delivered to you on which value added service is performed, on behalf of the overseas client as if it is your own input tax. The goods should become inputs to your treated or processed goods. This is provided that you have either:
  
  • paid the GST on the goods; or
  • refunded the GST paid on the goods by the overseas client.

For more information on how the ACMT scheme works and GST reporting requirements, please refer to GST: Approved Contract Manufacturer and Trader (ACMT) Scheme (518KB).  

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Applying for the scheme

For information on the eligibility conditions, please refer to GST: Approved Contract Manufacturer and Trader (ACMT) Scheme (518KB).

According to the role you perform in the contract manufacturing supply chain, you can apply for ACMT Scheme either as an approved contract manufacturer (ACMT CM) or an approved logistics company (ACMT LOG).

If you wish to apply, please submit:

• GST F14A: Application for Approved Contract Manufacturer and Trader (ACMT) Scheme as an Approved Contract Manufacturer (ACMT CM) (189KB) together with Appendix 1: ACMT CM Pre-Application Checklist (117KB); or 
• GST F14B: Application for Approved Contract Manufacturer and Trader (ACMT) Scheme as an Approved Logistics Company (ACMT LOG) (182KB). 

Your application should include the following documents:

• Your latest annual audited financial statements;
• External auditor’s opinion of the above mentioned financial statements, which must be unqualified;
• For each type of business arrangement with your overseas clients, a brief description, illustration of the supply chain and proportion of goods exported. You can refer to the sample provided in Appendix 3 of the GST: Approved Contract Manufacturer and Trader (ACMT) Scheme (518KB);
• If you are in the biomedical industry, a copy of your valid GMP certificate and/ or HSA's notification letter for auto-renewal of manufacturer's licence, if any; and
• Any other required document as stipulated in the application form.

 
In addition, you * have to either:

• Perform a self-review under the Assisted Self-Help Kit (ASK) and submit the certified ASK declaration form, ASK: Declaration Form on Completing Annual Review & Voluntary Disclosure of Errors (143KB) (i.e. Section 3 of ASK) together with your application; or

• Commit/ have committed to participate in the Assisted Compliance Assurance Programme (ACAP).
  

* With effect from 1 Jan 2013, the ASK declaration form has to be certified by either your own in-house or external tax professional who is accredited as an Accredited Tax Practitioner (GST) or Accredited Tax Advisor (GST) with the Singapore Institute of Accredited Tax Professionals ("SIATP"). For more information on accreditation, please visit www.siatp.org.sg.

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List of persons approved under ACMT Scheme

Businesses that are approved under the ACMT Scheme are as follows: 

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