Hand-Carried Exports Scheme (HCES)
What HCES Doesn’t Cover
At BluTrust Pte. Ltd., we want to make your export process as smooth as possible. Please note that the Hand-Carried Exports Scheme (HCES) does not apply to goods leaving Singapore via:
– Sea routes
– Land routes
– Seletar Airport
To qualify for zero-rated GST on these exports, ensure you maintain all required export documentation, as outlined in our comprehensive GST Export Guide.
How to Utilize HCES with BluTrust Pte. Ltd.
Step 1: Secure Your Export Permit
If you’re exporting goods through Changi International Airport, you’ll need a valid export permit. This is mandatory, irrespective of the value or quantity of the goods. You can either register for a TradeNet account yourself or let us, your trusted declaring agent, handle it for you.
Step 2: Customs Inspection Made Easy
The individual carrying the goods out of Singapore must present the following items to Singapore Customs at the airport:
– A valid export permit
– A supporting invoice
– Proof of intent to leave Singapore (e.g., boarding pass or confirmed air ticket)
Singapore Customs will digitally endorse the export permit upon verification.
Step 3: Exiting Singapore
The carrier must leave Singapore with the goods, either in hand-carry or checked-in luggage, within 12 hours of receiving the digital endorsement from Singapore Customs.
Step 4: Document Retention
To validate your zero-rated GST claim under HCES, you must keep the following documents for 60 days from the time of supply:
– Invoice
– Digitally endorsed export permit
– Proof of payment received from your overseas customer
– Evidence of GST refund to the customer, if applicable
Digital Transformation in HCES
As of January 3, 2023, Singapore Customs will only digitally endorse HCES export permits. You’ll receive an electronic clearance status via your Networked Trade Platform (NTP) account. To use this service, make sure you have an active NTP account and are subscribed to the HCES digital service.
Handling GST with BluTrust Pte. Ltd.
Scenario A: Received Endorsed Export Permit
Report the sale as a zero-rated supply.
Ensure you have:
– Refunded the GST to your overseas customer
– Retained all necessary documents
Scenario B: Endorsed Export Permit Not Yet Received
Initially, report the sale as a standard-rated supply. Once you receive the endorsed export permit, you can adjust your GST return to claim back the output tax.
Special Exemptions
If you’re unable to present the goods for inspection due to specific commercial reasons, you may apply for an exemption from HCES.
For additional details, please refer to Singapore Customs’ Notice 01/2023 and their Exporting Hand-Carried Commercial Goods webpage.
We at BluTrust Pte. Ltd. are here to assist you every step of the way. Feel free to reach out to us for any further clarification or assistance.