Hand-Carried Exports Scheme (HCES)

HCES does not apply to goods hand-carried out of Singapore by:

1. Sea;
2. Land; or
3. Seletar Airport.

To zero-rate the supply of goods hand-carried out of Singapore via the above routes, you must maintain all the export evidence as required in GST: Guide on Exports (PDF, 717KB).

1. Obtain an export permit

    You must take up a valid export permit (OUT Permit or Cargo Clearance Permit) via TradeNet for the goods that will be hand-carried out of Singapore via Changi International Airport.

   This is regardless of the value and quantity of goods. You may register for a TradeNet account or appoint a declaring agent (e.g. your freight forwarder) to declare for the export permit.

2. Present the goods for inspection at the airport

   The person bringing the goods out of Singapore (the carrier) must present the goods to Singapore Customs at the airport for inspection with:

   1. valid export permit
   2. supporting invoice; and
   3. proof of intention to leave Singapore (e.g. boarding pass or confirmed air-ticket).

   Singapore Customs will endorse the export permit if the above are in order.

3. Bring the goods out of Singapore

   The carrier must bring the goods with him in his hand-carry or check-in luggage out of Singapore within 12 hours after getting the endorsement from Singapore Customs.

4. Maintain required documents

   You must maintain the following documents within 60 days from time of supply to support your zero-rating of the hand-carried export under HCES:

   1. Copy of the invoice/ tax invoice issued to the overseas customer for the goods sold;
   2. Endorsed export permit(s)/ export permit(s) with digital clearance;
   3. Evidence of payment received from the overseas customer; and
   4. Evidence of payment made to overseas customer for the refund of GST that was previously charged and collected from the customer at the time of sale, where applicable¹
      

For more information, please refer to GST: Guide on Hand-Carried Exports Scheme (PDF, 332KB). 

¹This is relevant for instances where the supplier has previously standard-rated the supply and subsequently made a refund of GST to the customer upon receiving the export permit that contains the original endorsement of Singapore Customs/ digital clearance.

In October 2018, Singapore Customs launched a new HCES digital service, which allows businesses to receive an electronic copy of the clearance status of the goods inspected through the Networked Trade Platform (NTP). The electronic copy of the clearance status of the goods (hereinafter referred to as "digital clearance") serves as the endorsement of the HCES permit and replaces the physical endorsement of the export permit.

Businesses are encouraged to subscribe to the HCES digital service, which is the default processing method for endorsing HCES permits from 1 August 2019. In the interim, businesses that have yet to subscribe for the HCES digital service will continue to have their export permits physically endorsed by Singapore Customs. For more information on the HCES digital service, please refer to Singapore Customs' Notice 06/2019 at https://www.customs.gov.sg.

You should issue an invoice/ tax invoice. Upon receipt of the endorsed export permit/ digital clearance within 60 days from the time of supply, you should refund the GST charged (less any administrative fee imposed by you) to your overseas customer.

1. You have received the endorsed export permit/ digital clearance

   Reporting of Sale in GST Return:

   You should report the sale as a zero-rated supply (Box 2).

   Conditions:

   1.  You have refunded the GST to your overseas customer; and
   2. You maintain all required documents within 60 days from time of supply to support the zero-rating under the scheme.

2. You have not received the endorsed export permit/ digital clearance

   Reporting of Sale in GST Return:

   1. Report the sale as a standard-rated supply (Box 1); and
   2. Account for the output tax (Box 6).

   When you receive the endorsed export permit/ digital clearance subsequently:

   You can claim back the output tax previously accounted to IRAS. In the GST return for the period in which you wish to claim back the output tax, you should:

   1. Report the sale as a zero-rated supply (Box 2);
   2. Reduce the value of sale from "Total value of standard-rated supplies" (Box 1); and
   3. Reduce the GST refund amount from "Output tax due" (Box 6).

   Conditions:

   1. You have refunded the GST to your overseas customer; and
   2. You maintain all required documents within 60 days from time of supply to support the zero-rating under the scheme.

1. You have received the endorsed export permit/ digital clearance

   Reporting of Sale in GST Return:

   You should report the sale as a zero-rated supply (Box 2).

   Condition:

   1. You maintain all required documents within 60 days from time of supply to support the zero-rating under the scheme.

2. You have not received the endorsed export permit/ digital clearance 

   Reporting of Sale in GST Return:

   Report the sale as a zero-rated supply (Box 2) provisionally.
   
   When you do not receive the required export documents within 60 days from the time of supply, you should:
   1. Report the sale as a standard-rate supply (Box 1); and
   2. Account for output tax using the tax fraction of 7/107 (Box 6); and
   3. Reduce the amount reported provisionally as "Total value of zero-rated supplies" (Box 2).

   If you had included the transaction as zero-rated supply in your GST return, you may need to make an adjustment by filing a GST F7.

   If you received the endorsed export permit after 60 days from the time of supply due to unforeseen circumstances and wishes to zero-rate your supply of goods, please write to the Comptroller of GST for prior approval, which may be granted on a case-by-case basis.

    

If you are unable to present the goods to Singapore Customs for inspection due to certain commercial reasons, you may apply to be exempted from the HCES.

To apply for exemption, you should submit the application form GST F17: Application for Exemption from Hand-Carried Exports Scheme (DOC, 218KB) to the Comptroller of GST.

For details, please refer to GST: Guide on Hand-Carried Exports Scheme (PDF, 332KB).