What is the scheme about
With effect from 01 April 2009, the zero-rating of supply of goods hand-carried out of Singapore via Changi International Airport is governed under section 21(7) of the GST Act and Regulation 105A of the GST (General) Regulations; this will be known as the Hand-Carried Exports Scheme (HCES). Such supplies of hand-carried goods will no longer be allowed to be zero-rated under section 21(6) of the GST Act.
This scheme is specifically designed for GST-registered persons to obtain documentary proof that goods are hand-carried out of Singapore via Changi International Airport, before the supplies of such goods can be zero-rated for GST purposes.
This scheme does not apply to:
- Hand-carried exports via Seletar Airport, sea or land. GST-registered persons are required to maintain the exports documents listed in the e-Tax Guide GST: A Guide on Exports (650KB) for their hand-carried exports via:
- Changi International Airport before 01 April 2009;
- Seletar Airport;
- Sea; or
- Land.
- Goods that are purchased by departing passengers from shops located after the immigration check-in area of Changi International Airport.
Who should use this scheme
You must use this scheme when you wish to zero-rate your supply of goods made to an overseas customer and your goods are hand-carried out of Singapore via Changi International Airport.
This scheme is compulsory for all GST-registered persons who have hand-carried exports via Changi International Airport on or after 01 April 2009.
How does the scheme work
Under this scheme, you must take up a valid export permit (also commonly known as "Out Permit" or "Cargo Clearance Permit") for the hand-carried goods which you sell to your overseas customer.
The person bringing your goods out of Singapore (referred to as “the carrier”) must present both the hand-carried goods and the export permit to the designated counters of Singapore Customs (“SC”) at the airport for inspection. After SC has inspected your goods, SC will endorse on the export permit if SC is satisfied that the goods tally with the quantity and description declared in the permit.
The original copy of the export permit endorsed by SC must be received by you within 60 days of the date of your supply. You must keep the export permit endorsed by SC as documentary proof of your exports if you wish to zero-rate your supplies of hand-carried goods under this scheme.
What if you have difficulties in complying with the requirements of this scheme
You may apply to be exempted from the scheme by completing the application form GST F17: Application for Exemption from Hand-Carried Exports Scheme (71KB) and submit your application to the Comptroller of GST.
For more details on how HCES works and the qualifying conditions for exemption from the scheme, please refer to our e-Tax guide GST: Guide on Hand-Carried Exports Scheme (310KB).