Industrial Exemption Factory Scheme

Tax breaks for manufacturers who use dutiable raw materials for manufacturing.

  • Local industries which use dutiable raw materials to manufacture non-dutiable products and 100% of these products are to be exported.
  • An example of a business that may qualify is a cosmetics company that uses alcohol (dutiable raw material) in manufacturing fragrances.
  • Under this scheme, duty on raw materials is exempted but you have to pay the Goods and Services Tax (GST).
  • 100% exemption on dutiable raw materials for a period of 2 years.
  • You will have to apply for a Duty Exemption Certificate for every consignment of goods imported. If the potential duty exceeds S$100, a processing fee of S$225 is payable for the issue of the certificate.
  • You shall apply to Singapore Customs for duty exemption under the Scheme. In the application, you are required to provide information on the types of goods to be produced, the raw materials needed for each type of goods, the production yield, and the quantity of raw materials required for production annually.
  • These materials should only be used for the manufacturing of your own products. You cannot resell these materials.
  • You are required to maintain proper records and provide adequate facilities for Customs officers to examine records and stock balances.

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