Under MES, GST on non-dutiable goods is suspended at the point of import and also when the goods are removed from Zero GST warehouses.
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Purpose

Major Exporter Scheme (MES) is designed to ease the cash flow of businesses that import and export goods substantially.

Under normal rules, the businesses have to pay GST upfront on imports and subsequently obtain a refund from IRAS after submission of their GST returns.

This can create cash flow problems for businesses that export goods substantially as no GST is collected from the zero-rated supplies to set-off their initial cash outflow on imports.

Businesses granted the MES are able to import non-dutiable goods with GST suspended. Effective from 1 Jul 2006, such businesses also enjoy GST suspension on goods removed from a Zero GST warehouse.

For more details on the qualifying conditions and requirements, please refer to GST: Major Exporter Scheme (PDF, 298KB)

Applying for MES

To apply:

  1. Complete and submit this Form GST F10: Application for Major Exporter Scheme; and refer to GST: Major Exporter Scheme (PDF, 298KB) for the requirements.

Guarantee

A guarantee from a financial institution may be required before approval is granted.

Digital guarantees (or eGuarantees) can now be purchased from a number of financial-institutions. Please visit eGuarantee@Gov for more information on eGuarantees.

To apply for an eGuarantee, please refer to the Guarantee Application Process (PDF, 137KB).

Validity of MES

Once your application is approved, you will receive a notification on the effective date of approval of your MES and validity period which is usually 3 years.

Your MES will be revoked any time if you fail to satisfy any of the MES qualifying conditions.

Renewing MES

1.  Receive renewal invitation letter

When your MES is due for review and you continue to satisfy the qualifying conditions, a letter will be sent to invite you to apply for renewal of your MES.

2.  Submit Form R1 with certified ASK

You are required to submit the Form R1 online via myTax Portal together with the certified ASK within the due date stated in the renewal letter.

3.  Wait for approval in writing

IRAS will inform you in writing of the outcome of the review. Your MES will continue to be valid pending the outcome.

4.  Submit letter of guarantee (if required)

During the renewal, the requirement of a letter of guarantee will also be reviewed. You will be informed if a letter of guarantee is required.

5.  Validity of MES

To reduce the compliance costs for businesses, the validity period for successful renewal of MES has been extended up to five years from the current three years. This change applies to all businesses who renewed their MES since Jan 2013 where a certified ASK has been submitted as part of the renewal application process.

New applications will still have a validity period of three years and their first renewal will be in the third year of the validity period.

Appointing declaring agents

As an approved MES person, you are able to authorise up to 20 declaring agents (e.g. freight forwarders) to clear the goods on your behalf.

You are accountable for all permits declared by your declaring agents. Therefore, we advise that you exercise due care and do not appoint more declaring agents than necessary.

To appoint/change/delete agents, use the online e-Service "Apply for Declaring Agents" at mytax.iras.gov.sg. Your request will be effected in the next two working days.

Reporting in GST returns

1. Importing goods

When you import goods (including goods belonging to your overseas principals who are not GST-registered) under MES, you should declare the value of imports in:

  1. Box 5 (Total value of taxable purchases); and
  2. Box 9 (Total value of goods imported under Major Exporter Scheme/ Approved 3rd Party Logistics Company Scheme or Other Approved Schemes).

Declarations must be supported by valid ME permits and relevant supporting documents (e.g. commercial invoices and appropriate shipping documents). 

As GST on imports has been suspended (i.e. not paid), you should not claim any input tax. 

2. Zero-GST (ZG) warehouses

When you import goods (including goods belonging to your overseas principal) into a  Zero GST (ZG) warehouse, you must declare the imports in your GST return despite the suspension of GST. 

You should declare the value of imports in Box 5 (Total value of taxable purchases) even though GST is suspended.

When the goods are later removed from ZG warehouse into customs territory under MES,  you should declare the value of goods removed in:

  1. Box 5 (Total value of taxable purchases); and
  2. Box 9 (Total value of goods imported under Major Exporter Scheme/ Approved 3rd Party Logistics Company Scheme or Other Approved Schemes).

They must be supported by valid ME / MC / Customs permits and relevant supporting documents (e.g. commercial invoices and appropriate shipping documents). 

Easing compliance

The TradeXchange Repository Service provides an online platform for the consolidation of relevant trade documents, to help businesses meet the recordkeeping requirements for imports and exports with greater ease. Uploading documents on this platform reduces the efforts in manually matching your permits with other documents in support of your trade activities.

FAQs

I want to import goods using my MES status. What type of permit should I declare?

You need to take up a ME permit with Singapore Customs.

My related company is not under the MES. Can my related company use my MES status to import their goods?

No. You can only use your MES status for goods that are owned by you or your overseas principal (where you act as a Section 33(2) agent, Section 33A agent or Section 33B agent).

It is an offence for a non-MES company to import goods using the MES status of another company. Penalties will be imposed and your MES status may be revoked.

I have submitted a letter of guarantee to IRAS for application/renewal of my Major Exporter Scheme. My letter of guarantee has expired. Do I need to submit a new letter of guarantee?

No. When your letter of guarantee expires (i.e. end of the guarantee period), the letter of guarantee is effectively null and void. Thus, the Comptroller does not return the letter nor issue a letter of release.

During the renewal of your MES status, the requirement of a letter of guarantee is also reviewed. You will be informed if a new letter of guarantee is required.

Can I use my MES status to import investment precious metals (IPM) or materials used for or in refining of IPM?

No. you should not use your MES status to import goods which are exempt from GST (i.e. IPM) or materials which are attributable to the making of an exempt supply.

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