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 (938KB).

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 subscribe for TradeNet® or appoint a TradeNet® 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. the 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 on the export permit if everything is in order.

Singapore Customs will endorse on the export permit if everything is 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 on the export permit.

4. Obtain the endorsed export permit

 To qualify for zero-rating, you must receive the endorsed export permit within 60 days from the date of supplying the goods.

5. Maintain required documents

You must maintain the following documents to support your zero-rating of the hand-carried export under the scheme:

1. Copies of the invoices / tax invoices issued to the overseas customer for the goods sold;
2. Export permit(s) containing the original endorsement by Singapore Customs;
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
   
   

With effect from 1 Jan 2019, you will be required to maintain evidence of payment received from the overseas customer as listed in (c) above as part of your supporting documents.

For more information, please refer to GST: Guide on Hand-Carried Exports Scheme (725KB). 

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.

 

You should issue an invoice/ tax invoice. Upon receipt of the endorsed export permit within 60 days from the date of sale, 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

   Reporting of Sale in GST Return:

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

   Conditions:

   1.  Export permit is endorsed by Singapore Customs and received within 60 days from the date of your supply;
   2. You have refunded the GST to your customer; and
   3. You maintain all documents to support zero-rating under the scheme.

2. You have not received the endorsed export permit

   Reporting of Sale in GST Return:

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

   When you receive the endorsed export permit subsequently:

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

   1. Report the sale as 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 refunded from "Output tax due" (Box 6).

   Conditions:

   1. Export permit is endorsed by Singapore Customs and received within 60 days from the date of your supply;
   2. You have refunded the GST to your overseas customer; and
   3. You maintain all documents to support zero-rating under the scheme.

1. You have received the endorsed export permit

   Reporting of Sale in GST Return:

   Report the sale as a zero-rated supply (Box 2)

   Conditions:

   1. Export permit is endorsed by Singapore Customs and received within 60 days from the date of your supply; and
   2. You maintain all documents to support zero-rating under the scheme.

2. You have not received the endorsed export permit

   Reporting of Sale in GST Return:

   1. Report the sale as a zero-rated supply provisionally; and
   2. To maintain all documents to support zero-rating under the scheme.

   When you have not received the endorsed export permit within 60 days from the date of your supply, you should:

   1. Report the sale as standard-rate supply (Box 1); and
   2. Account for output tax using the tax fraction of 7/107.

   In situation where you had provisionally reported it as zero-rated supply, you may need to make an adjustment by filing GST F7 .

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 scheme.

To apply for exemption, you should submit the application form GST F17: Application for Exemption from Hand-Carried Exports Scheme (406KB) to the Comptroller of GST.

For details, please refer to GST: Guide on Hand-Carried Exports Scheme(725KB).