Introduction to Singapore Customs

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• Introduction to Singapore Customs
• Presented by
• Loh Fook Meng
• ADG (Compliance)

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Outline

• Singapore Customs About Us
• Our Organisation
• Our Vision, Mission, Motto (VMM) and Values
• Our Roles and Functions
• Our Customers and Partners
• Our Challenges Ahead

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What is Customs?

• What is Customs?
• According to World Customs Organisation
  Glossary of Terms
• The Government Service which is responsible for
  the administration of Customs law and the
  collection of import and export duties and taxes
  and which also has responsibility for the
  application of other laws and regulations
  relating, inter alia, to the importation, transit
  and exportation of goods.
• In Singapore, Singapore Customs (SC) is separated
  from the Immigration Checkpoints Authority (ICA)

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• Our Organisation

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Re-constitution in April 2003
Customs Excise Department (MOF)
Singapore Immigration and Registration (MHA)
Trade Facilitation Div Statistics Audit Unit
of IE Singapore (MTI)

• Immigration
• Registration

• Trade Facilitation
• Trade Documentation
• Rules of Origin

• Revenue Collection
• Customs Documentation
• Customs Enforcement
• Tax Suspension Schemes
• Strategic Goods

• Checkpoint Clearance
• Travellers, Baggage
• Cargo, Vehicles

Singapore Customs (MOF)
Immigration Checkpoints Authority (MHA)
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SINGAPORE CUSTOMS ORGANISATION CHART FROM 2
AUGUST 2010
DIRECTOR-GENERAL OF SINGAPORE CUSTOMS Mr Fong
Yong Kian
Head Internal Audit Mr Chua Liang Huat
ASSISTANT DIRECTOR-GENERAL (POLICY PLANNING) Mr
Lee Tiow Yong
ASSISTANT DIRECTOR-GENERAL (INTELLIGENCE
INVESTIGATION) Mr Lee Boon Chong
ASSISTANT DIRECTOR-GENERAL (CORPORATE
DEVELOPMENT) Mrs Lam Meng Choo
ASSISTANT DIRECTOR-GENERAL (COMPLIANCE) Mr Loh
Fook Meng
SENIOR ASSISTANT DIRECTOR-GENERAL (TRADE) Mr Lim
Teck Leong ASSISTANT DIRECTOR-GENERAL (TRADE) Ms
Teo Siew Lan
ASSISTANT DIRECTOR-GENERAL (CHECKPOINT
CORPORATE SERVICES) Mr Mok Hei Chee
Head Operations Policy Development Ms Ivy Chong
Head Checkpoint Services Investigation Ms Joyce
Lim Siok Keow
Head Policy Research Ms Ooi Chia Miin
Head Finance Mr Vincent Leong
Head Permits Compliance Mr Peter Cheah Hock Lye
Head Procedures Systems Mr Winston Tay Wee Hua
Head Operations Management 1 Mr Aaron Cheong
Loong Wei Head Operations Management 2 Mr Long
Foo Liew
Head Corporate Information Technology Ms Yeo Beng
Huay
Head Planning Ms Tan Bee Lan Head Strategy Mr
Alvin Neo Yeow Leong
Head Human Resource Ms Shamala Dhevi
Head Company Compliance Mr Ho Ann Chuan
Head Schemes Licensing Mr Teh Thiam Siong
Head Intelligence Mr Samuel Ong Guan Kun
Head Corporate Administration Mr K Chandran
Head International Relations Ms Sung Pik Wan
Head Corporate Communications Mr Victor Seah Teck
Siong
Head Trade Investigation Ms Eo Boon Kian
Acting Head Client Relations Ms Patricia Poh Pei
Pei
Head Special Investigation Mr Yeo Sew Meng
Head Competency Development Ms Sumathi d/o
Govindarajan
Head Risk Assessment Mr Goh Yeow Meng
Head Trade Strategy Ms Fauziah Abdul Sani Head
Trade Security Ms Karen Lim Shu Wen
Head Suppression Community Engagement Mr Wan
Boon Oon
Head Tariffs Trade Services Mr David Foo Ching
Yenn
Head Prosecution Mr S Krishnan
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Our Staff Profile
Total Staff Strength (as of 31 July 2010) 796
Schemes of Service
Level of Qualification
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Our Parent Ministry
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Legislations We Administer
GST Act
Free Trade Zones Act
Customs Act
Owned by MOF
Owned by MFA
Regulation of Imports Exports Act
Owned by MTI
Chemical Weapons (Prohibition) Act
Strategic Goods (Control) Act
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Our Operating Locations

• Customs Corporate HQ is located at Revenue House.
• Customs Officers are also deployed at the
  following places
• Customs Operations Command (COC)
• Changi Airport Terminal 1
• Changi Airport Terminal 2
• Changi Airport Terminal 3 
• Budget Terminal
• Singapore Cruise Centre
• Tanah Merah Ferry Terminal
• Tuas Checkpoint
• Woodlands Checkpoint

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Examples of Operating Locations
Tanah Merah Ferry Terminal
Changi Airport T3
Revenue House
T3 Customs Duty Office
Woodlands Checkpoint
Customs Operations Command
T3 GST Refund (Landside)
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• Our Vision, Mission, Motto
• (VMM)

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Our Vision, Mission and Motto (VMM)
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Our Values
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• Our Roles and Functions

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Our Roles
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Our Roles
Compliance
Trade
Checkpoint Services
Intelligence Investigation
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Our Roles
Compliance
Trade
Checkpoint Services
Intelligence Investigation
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Trade Division

• 5 Branches
• Procedures Systems Branch
• Tariffs Trade Services Branch
• Schemes Licensing Branch
• Client Relations Branch
• Trade Strategy and Security Branch

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Single Window for Trade

• Handling the administration of TradeNet System,
  including managing vendors and Controlling
  Agencies

TradeNet

• TradeNet - Worlds 1st single-window electronic
  platform for trade declaration.
• Made its debut in 1989 as the worlds first
  nationwide electronic data interchange system for
  clearance of trade documentation. The last major
  system upgrade was conducted in October 2007
  (Version 4).

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Single Window for Trade
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Single Window for Trade
34 Controlling Units
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Single Window for Trade

• Single form
• Single submission
• Single interface
• Single process

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Single Window for Trade
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Single Window for Trade
Current Volume Performance

• More than 8,000 users from 2,600 subscribers
• About 30,000 declarations per day
• More than 9 million declarations annually
• Collected over S7b duties and GST in FY2009

• 100 of customs declarations processed and
  approved via TradeNet
• 100 of the collections are made electronically
  through Inter-Bank GIRO
• 90 of permits processed within 10 minutes

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Single Window for Trade

• A multi-agency initiative led by SC, IDA and EDB.

• A neutral and secure platform that facilitates
  the exchange of information within the trade and
  logistics community, and with the government

Legend JP Jurong Port TX - TradeXchange VAS
Value added Service Providers
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Helping Our Exporters Grow

• Determining Rules of Origin (ROO) for
  preferential treatment providing advice on
  valuation and classification of goods

• Leads ASEAN customs authorities to develop the
  ASEAN Harmonised Tariff Nomenclature (AHTN)
• The AHTN is a major step in facilitating trade
  among ASEAN countries while forging closer
  economic cooperation

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Free Trade Agreements (FTA)

• SC supports in negotiating the Customs Chapter of
  the various FTAs.
• SC also supports MTI in the rules of origin
  negotiations.
• These work are done to help improve the market
  access of our exporters.
• We have currently 20 FTAs in force.
• We collaborate closely with IE Singapore to
  conduct outreach to exporters to fully benefit
  from FTAs.
• In 2009, companies based in Singapore have
  enjoyed more than S700 million in tariff
  savings.

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Customs Trade Facilitation Schemes

• Promoting and administering customs schemes

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Delivering Schemes that Work

• Suspending GST - Zero GST Warehouse Scheme
• Developing Niche Industries Temporary Import
  Scheme
• From Multiple Licences to One Apex Licence

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Securing Supply Chains

• Complex nature of todays trade system means that
  all components of system are dependent upon one
  another for safe and secure trade.
• The WCO SAFE Framework of Standards secures the
  movement of global trade in a way that
  facilitates the movement of that trade.

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Securing Supply Chains

• National Authority for Secure Trade Partnership
  (STP) programme
• STP provides companies with a framework to guide
  development, implementation, monitoring and
  review of company's supply chain security
  measures
• Benefits include enhanced visibility, better
  branding, less inspection, expedited clearance
  (under Mutual Recognition Arrangements)

• Singapore Customs Director-General Mr Fong Yong
  Kian signing Mutual Recognition Arrangements with
  Canada Border Services Agency and Korea Customs
  Service at the WCO Council Sessions in June 2010

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Securing Supply Chains
APEC Trade Recovery Programme

• Endorsed by APEC leaders in Sydney in 2007, APEC
  Trade Recovery Programme (TRP) establishes
  principles for ensuring swift trade restoration
  among APEC economies in the immediate aftermath
  of a terrorist attack on the global supply chain
• Fast trade recovery is of paramount importance to
  international trade

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Export Control
Exercising control over trade in strategic goods

• Security and Peace Preconditions for trade to
  flourish
• Prevent proliferation of Weapon of Mass
  Destruction (WMD)
• Strategic Goods (Control) Act regulates trade and
  transfer in sensitive goods and technology
• Adopted Full Lists of the 4 Informal Export
  Control Regimes
• Control with Facilitation Strategic Trade
  Scheme
• National Authority for Chemical Weapons
  Convention (NA, CWC)

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Our Roles
Compliance
Trade
Checkpoint Services
Intelligence Investigation
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Compliance Division

• 4 Branches
• Permits Compliance Branch
• Company Compliance Branch
• Trade Investigation Branch
• Risk Assessment Branch

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Compliance Framework
(2) Deterrence through Effective Enforcement and
Penalties

(1) Timely Detection of Violations through Risk
Management Techniques
Customs Compliance Framework
(3) Education through Outreach
(4) Monitoring Compliance Status
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Key Roles of Compliance Division

• Conducting compliance checks on trade documents
• Conducting informed audits on companies customs
  requirements, and conducing stuffing and
  unstuffing functions
• Conducting investigations into revenue fraud
• Assessing the risk level of SC's external
  business processes and monitoring and targeting
  of companies for revenue evasion
• Setting incentives and penalties to promote
  voluntary compliance
• Conducting outreach and education to enhance
  compliance capability of trading community

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Compliance Efforts

• In the last 2 years, there has been an increase
  in the number of parallel importers (PI) and
  growing market share of Motor Vehicle imports by
  PI.

2004 2007 2008
No. of Parallel Importers 66 142 187
of Total MV Imports by Parallel Importers 4 20 24

• Suspected cases investigated and errant traders
  prosecuted in court.
• Message sent to parallel importers that fraud
  will not be tolerated.

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Errant Traders - Parallel Import of Motor Vehicles
Case 1
Straits Times 16 Jan 2009
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Errant Traders - Parallel Import of Motor Vehicles
Case 2
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Errant Traders - Parallel Import of Motor Vehicles
Case 3
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Intelligence Investigation Division

• 6 Branches
• Operations Policy and Development Branch
• Operations Management Branch
• Intelligence Branch
• Special Investigation Branch
• Suppression Community Engagement Branch
• Prosecution Branch

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Key Roles Of Intelligence Investigation Division

• Providing intelligence support
• Undertaking functions on strategic and policy
  issues as well as the development of its computer
  application systems
• Focusing on improvements to the investigation and
  enforcement operations by identifying systemic
  lapses and recommend corrective actions and
  guidance
• Coordinating interdiction of IPR infringing goods
  at the borders
• Conducting surveillance and investigations to
  suppress duty evasion and syndicate smuggling

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Key Roles Of Intelligence Investigation Division

• Conducting analysis to identify companies
  suspected of commercial fraud
• Conducting risk review and working with
  stakeholder branches to formulate strategies and
  implement control measures on risk elements
  identified
• Handling prosecution cases and providing legal
  advice on arrest and Customs cases.

• Driving community engagement to heighten public
  education and maintain public confidence in the
  enforcement of customs laws.

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Contraband Cigarettes Enforcement
Incentive to smuggle due to high duty rate on
cigarettes and huge price difference compared to
neighbouring countries

• Marlboro retail price/pack (S)

Source Philips Morris as _at_ July 2008
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Contraband Cigarettes Enforcement

• Multi-pronged strategies to tackle demand and
  supply side of problem
• Closing regulatory gaps to prevent abuse of
  customs procedure for smuggling
• Risk profiling to interdict smuggling via
  commercial consignments
• Increased quantum of composition sums and having
  tougher prosecution guidelines
• Increased resources to combat smuggling,
  including engaging CISCO and leveraging on other
  enforcement agencies
• Enhanced technological support for enforcement
  operations
• Publicity campaign against contraband cigarettes
• New marking requirement on individual sticks of
  cigarettes

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Contraband Cigarettes Enforcement
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Contraband Cigarettes Enforcement
Case 1
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Contraband Cigarettes Enforcement
Case 2
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Collaboration with Other Agencies

• ICA detects smuggling through checkpoints
• Joint operations and intelligence sharing with
  other enforcement agencies
• Coordinate with MOM, ICA and MOE on foreign
  offenders
• Coordinate with NEA, MEWR and ICA on illicit
  shipments of Environmentally Hazardous Goods

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Checkpoint Corporate Services Division

• 3 Branches
• Checkpoint Services Investigation Branch
• Corporate Information Technology Branch
• Corporate Administration Branch

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Key Roles Of Checkpoint Corporate Service
Division

• Providing essential customs services at the major
  checkpoints
• Planning and providing IT services to meet the
  needs of the department and create greater value
  in customs service delivery
• Providing the functions of office administration,
  facilities management and security

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Efficient and Customer-centric Checkpoint Services

• Providing essential customs services at the major
  checkpoints

• Collection of duty and GST payment from
  travellers.
• Facilitating tourist GST refund of over 125
  million in 2009.

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Our Roles
Compliance
Trade
Checkpoint Services
Intelligence Investigation
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Policy Planning Division

• 3 Branches
• Policy Research Branch
• Planning Branch
• International Relations Branch

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Key Roles Of Policy Planning Division

• Driving SC's strategic and corporate
  planning processes and plans, and policy
  formulation
• Conducting policy reviews
• Promoting technical cooperation to further
  national interests
• Participating in international/regional customs
  meetings and Free Trade Agreement negotiations

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Contributions to International Trade and Customs
Community

• Chair of APEC 09 Sub-Committee on Customs
  Procedures (SCCP)
• Chair of WCO and APEC Special Group on drafting
  of Trade Recovery annex to the SAFE Framework of
  Standards
• Chair of ASEAN Customs Procedures and Trade
  Facilitation Working Group (CPTFWG)

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Corporate Development Division

• 4 Branches
• Communications Branch
• Finance Branch
• Human Resource Branch Corporate
• Competency Development Branch

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Key Roles of Corporate Development Division

• Managing SCs corporate reputation and
  facilitating internal and external stakeholder
  communications.
• Managing SCs monetary resources and providing
  full range of financial management services
• Attracting and retaining the best talent for SC
  through implementation of effective HR practices
• Strengthening SC staff competencies through
  various competency-based specialised training

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Internal Audit Branch

• Internal Audit Branch
• Evaluating the adequacy and effectiveness of
  internal controls and ascertain whether policies
  and guidelines are complied with.

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• To summarise our roles and functions.

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Summary

• Trade Facilitation and Trade Enforcement are two
  sides of the same coin.
• Risk management plays an important role in every
  facet of customs work.

• Concept of traffic controls at the highways.

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• Our Customers and Partners

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Our Customers
Our Customers
Travelling Community
Trading Community
Departing Travellers
Arriving Travellers
Freight Forwarders
Importers/ Exporters
Manufacturers
Licensees

• Approx 90,000 entities registered with SC to
  engage in import/export activities.

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Customer Engagement

• 24X7 Call Centre (outsourced to CrimsonLogic)
• Regular dialogue sessions with traders
• Account Managers for traders under various
  schemes/programmes
• Key Customers Programme

• Strategically engage and enhance service
  experience of key customers through assignment of
  relationship managers
• Training the Trading Community
• - Customs Competency Programme for Businesses
  (CCPFB) and Strategic Goods Control Programme for
  Businesses (SGCPFB)

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Our Partners
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Importance of Fostering Partnerships

• Greater rapport and understanding of each others
  needs and challenges.
• Leveraging on each others resources and
  expertise.
• Sharing timely and reliable intelligence and
  information.
• Streamlining existing and/or future working
  procedures.
• Gathering innovative ideas and new growth
  opportunities for the future.

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• Our Challenges Ahead

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Singapores Success A World-Class Global Trade
Hub

• Singapore lives by international trade since its
  founding in 1819.
• Trade has been and will continue to be a key
  pillar in Singapores economy.

• In 2009, Singapore total trade volume reached
  747 billion.
• Ranked 1st in Ease of Doing Business and Trading
  Across Borders by The World Bank Report 2010.
• Overall, Singapore Customs contributes to
  Singapores trade growth.

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Our Challenges
A Fast-Changing Landscape

• International trading environment has become more
  complex.
• Security is a world-wide concern.

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Our Challenges

• Maintaining Singapores international
  competitiveness.
• Striking a good balance between being
  business-friendly and maintaining trust and
  integrity of our trading system.
• Collaborating with other countries to enhance
  trade security, e.g. through more mutual
  recognition arrangements to facilitate
  Singapores exports.

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• Thank you