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Importation of electronic goods to sell in Singapore

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zane8080
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Importation of electronic goods to sell in Singapore

Postby zane8080 » Wed, 24 Sep 2014 2:04 pm

Hi all, this is something which I have never done before, an importer.

I am planning of importing 200 pcs of portable battery charger and each is the size of a men wallet.

I have 2 ways of bringing them in. My intention is to spend the least to bring them in

1) All the items can fit into a large luggage which I intend to Check In at the Shenzhen Airport and then collect them back at Changi Airport. This is definitely unorthodox and will likely get fined or worst still, stopped at customs. I do not know if this will work or not.

2) The other method is to use the air freight cargo shipping method either by sea or air and then instead of storing them at any warehouses, I would like to bring them back home for storage.

3) By standard mailing like FedEx or DHL.

I have never imported many items before and hope you can kindly offer the pros and cons.

WHich method is the cheapest and doable without getting stopped or fined?

Anyone has experience in importation?

Best Regards,
Zane

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Strong Eagle
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Postby Strong Eagle » Wed, 24 Sep 2014 11:30 pm

Bring them in whichever way you want. Just remember that:

a) Any goods brought in worth more than $400 are subject to GST, so be sure to declare your goods and pay the GST at the red line if you bring them in yourself. CPF is based upon cost of goods, freight, and insurance.

b) You should also carry proof that you own the merchandise you are bringing in, such as invoices and receipts for money paid for the goods.

c) See this website for additional notifications you must make when importing goods for resale.

http://reviewsguru.blogspot.com/2010/09 ... apore.html

d) You will need to have a legitimate business or company to sell your product in Singapore. Selling them personally without a business entity is not permitted.


In general, there are no import duties or other restrictions placed upon IT accessories.

http://web.ita.doc.gov/ITI/itiHome.nsf/ ... enDocument

zane8080
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Postby zane8080 » Thu, 25 Sep 2014 2:11 am

Hi and thank you for the links.

So it says if you are bringing in as a sample and it exceed $400, u need to pay tax. If you are importing electronic accessories, there will be no duties.

Am I right in that?

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Postby Strong Eagle » Thu, 25 Sep 2014 5:57 am

zane8080 wrote:Hi and thank you for the links.

So it says if you are bringing in as a sample and it exceed $400, u need to pay tax. If you are importing electronic accessories, there will be no duties.

Am I right in that?


That is what I understand from reading various websites. I am not a subject matter expert in this area but it seems pretty clear to me. You should call ICA and see what they have to say.

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Postby JR8 » Thu, 25 Sep 2014 9:14 am

Strong Eagle wrote:d) You will need to have a legitimate business or company to sell your product in Singapore. Selling them personally without a business entity is not permitted.


Passing thought: Does that mean that being say an e-Bay trader (in a personal capacity) is not permitted?

p.s. doesn't apply to me, but I can see this is questions that might arise in future.

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Postby Strong Eagle » Thu, 25 Sep 2014 10:04 am

JR8 wrote:
Strong Eagle wrote:d) You will need to have a legitimate business or company to sell your product in Singapore. Selling them personally without a business entity is not permitted.


Passing thought: Does that mean that being say an e-Bay trader (in a personal capacity) is not permitted?

p.s. doesn't apply to me, but I can see this is questions that might arise in future.


That's a lovely gray area, JR8, and the ACRA website is quite explicit... except for a handful of exempt businesses, if you are earning money through the provision of goods or services, you must have a registered business.

I think it's one more case where Singapore law, like other countries, hasn't caught up with the Internet... clearly, I could have a large business, and so long as I didn't tip my hat through import/export/shipping records, no one would be the wiser.

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Re: Importation of electronic goods to sell in Singapore

Postby taxico » Tue, 30 Sep 2014 7:51 pm

zane8080 wrote:...I have 2 ways of bringing them in. My intention is to spend the least to bring them in...


i know your intent is to reduce cost, but here's a cautionary tale...

http://www.todayonline.com/business/thr ... ax-evasion

Three online retailers were slapped with fines for evading Goods and Services Tax (GST) on branded handbags and accessories they had imported in to Singapore.

Long Siew Fong, Jessie Sng Lee Ling and Yak Sow Pin were fined S$31,000, S$10,000 and S$4,500 respectively for offences committed between October 2010 and August 2012. They were sentenced by the State Courts on Sept 25.

Between October 2010 and June 2011, Long imported 2,172 bags and accessories via 15 import permits, avoiding S$9,399.58 in GST payment. During the sentencing, she pleaded guilty to five charges and 10 other charges were taken into consideration.

Between January 2011 and August 2012, Sng imported 269 bags and accessories via five import permits, avoiding S$1,216.47 in GST payment. During the sentencing, she pleaded guilty to two of the five charges.

In January 2011, Yak imported 90 bags via two permits and avoided S$502.93 in GST payment. He pleaded guilty to one of two charges.

According to Singapore Customs, anyone found guilty of tax evasion will fined up to 20 times the tax evaded and/or be jailed for up to two years. By under-declaring the value of the goods, the three individuals avoided paying GST of various values.
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Re: Importation of electronic goods to sell in Singapore

Postby Strong Eagle » Tue, 30 Sep 2014 9:27 pm

taxico wrote:
zane8080 wrote:...I have 2 ways of bringing them in. My intention is to spend the least to bring them in...


i know your intent is to reduce cost, but here's a cautionary tale...

http://www.todayonline.com/business/thr ... ax-evasion

Three online retailers were slapped with fines for evading Goods and Services Tax (GST) on branded handbags and accessories they had imported in to Singapore.

Long Siew Fong, Jessie Sng Lee Ling and Yak Sow Pin were fined S$31,000, S$10,000 and S$4,500 respectively for offences committed between October 2010 and August 2012. They were sentenced by the State Courts on Sept 25.

Between October 2010 and June 2011, Long imported 2,172 bags and accessories via 15 import permits, avoiding S$9,399.58 in GST payment. During the sentencing, she pleaded guilty to five charges and 10 other charges were taken into consideration.

Between January 2011 and August 2012, Sng imported 269 bags and accessories via five import permits, avoiding S$1,216.47 in GST payment. During the sentencing, she pleaded guilty to two of the five charges.

In January 2011, Yak imported 90 bags via two permits and avoided S$502.93 in GST payment. He pleaded guilty to one of two charges.

According to Singapore Customs, anyone found guilty of tax evasion will fined up to 20 times the tax evaded and/or be jailed for up to two years. By under-declaring the value of the goods, the three individuals avoided paying GST of various values.


The really dumb thing about this is that these people could have registered a GST business voluntarily and claimed all GST paid as an input tax. All it would have taken is a bit of paperwork. Then again, they probably expected to be gray market sellers and not report any income as a business anyway.

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Edmund LovePrecious AdeLi
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Postby Edmund LovePrecious AdeLi » Fri, 10 Oct 2014 9:28 pm

zane8080 wrote:Hi all, this is something which I have never done before, an importer.

I am planning of importing 200 pcs of portable battery charger and each is the size of a men wallet.

I have 2 ways of bringing them in. My intention is to spend the least to bring them in

1) All the items can fit into a large luggage which I intend to Check In at the Shenzhen Airport and then collect them back at Changi Airport. This is definitely unorthodox and will likely get fined or worst still, stopped at customs. I do not know if this will work or not.

2) The other method is to use the air freight cargo shipping method either by sea or air and then instead of storing them at any warehouses, I would like to bring them back home for storage.

3) By standard mailing like FedEx or DHL.

I have never imported many items before and hope you can kindly offer the pros and cons.

WHich method is the cheapest and doable without getting stopped or fined?

Anyone has experience in importation?

Best Regards,
Zane


Hi,

My advise is to ship it out from Hong Kong via Forwarder or Courier Service,

- First, If you wish to ship out from Shenzhen via AIR is nearly to impossible, as Power Bank is classified as Dangerous Goods under IATA regulation, Power Bank is classified under UN3480, Which is Class 9 cargo, which require to pack according to Section II Packing Instruction 967. If your Power Bank power is big it will automactically fall under Section II B, Packing instruction 965 as it exceed Battery cells >4.

- Second, If you wish to ship out via Courier service via Shenzhen you need to send your goods for Inspection, Estimated 10 Working days, and it may not pass if supplier do not supply good Power Bank. as they need to follow strictly IATA rules which need UN38.3 Certification for Transportation purposes.

Overall, either you ship out via SEA which Estimated lead time 4 to 7 days include Custom Clearance or you ship out via Hong Kong which have airline accept Dangerous Goods, But keep in mind, Airline that accept Li-ion Batteries Shipment is Expensive Airline, (e.g. SQ). Till now cheapest is TG (Thai Airway)

Hope above explanation able to let you reconsider on how your shipment to process. =)

Cheers
Edmund


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