Exporting to Singapore from India: Reason to Start Now
Exporting to Singapore from India has become more and more popular in the past few years. Singapore has been a significant trading hub for Asia. The country is also a leader in logistics and transportation, making it one of India’s best destinations for exporting.
The literacy rate in Singapore is as high as 96%, which means that the workforce is highly educated and skilled. Thus, you can expect highly qualified professionals working in your manufacturing facility.
The infrastructure in Singapore is quite advanced and well developed, which makes it easier for businesses to start their operations smoothly without any delays or issues.
How to Export your Items from India to Singapore?
Singapore is one of the largest hubs for importing goods into the country. It is an excellent place for a company to conduct business. It offers excellent infrastructure, tax benefits, easy regulations, and a great market, especially for Indian companies. However, there are specific processes that one needs to follow while exporting the goods.
Procedures of Export Certification
- The exporter has to apply for a registration certificate to the Directorate General of Foreign Trade (DGFT).
- An IEC Code is mandatory for all exporters, including those exporting handicrafts, small and medium enterprise products, etc., except when the export value does not exceed $25,000 in any financial year.
- The next step involves registration with the local sales tax authorities. This is required only if the product is subject to sales tax.
- The fourth step is regarding the classification of commodities, which can be done by referring to the Indian Trade Classification (Harmonized System) or ITC(HS).
- A certificate called ‘Certificate of Origin’ must be obtained from the Chamber of Commerce for every export.
It is not that difficult to export from India to Singapore. The first requirement for the exporter is a tax number. This number is known as the GSTIN, or Goods and Service Tax Identification Number.
This GSTIN can be acquired easily through the government website. The exporter must provide their PAN number and other basic details.
The next step is to acquire an IE code or Importer Exporter Code which is a 10-digit code and will act as the identity of the exporter in the international business world. This code is essential as it will be required at various transaction stages.
Step 1: Get an Export Declaration Number (EDN) from Customs
You must obtain an Export Declaration Number (EDN) from the Customs department to export from India.
Step 2: Submit a Shipping Notice for the Items
Customs requires you to submit a Shipping Notice for every export consignment and get it stamped by Customs before you can ship. Most freight forwarders will help you with this step.
Step 3: Apply for Customs Documentary Credits or DCs
Customs requires the DCS for cross-border transactions. Suppose you’re shipping something outside of the Free Trade Area. In that case, you’ll need to apply for a different type of DC called Documentary Credits under Bank Guarantee (DCBG). Again, freight forwarders can help with this too.
Shipment Process from India to Singapore
Most Indian businesspeople do not know much about shipment to Singapore. The process starts with searching for a freight forwarder who can take care of your shipment from India to Singapore.
The exporter can deliver the goods directly to the freight forwarder’s warehouse or request a pickup. The exporter must provide all paperwork related to the export shipment.
There are two vessel departures: LCL (Less than Container Load) and FCL (Full Container Load). FCL shipments use an entire container, while LCL shipments use only a portion of it and are shared by several other exporters.
After all, cargo has been loaded onto a container; it is sealed with a seal number provided by customs officials in India. This ensures that no cargo is removed or added during transit and prevents pilferage.
Types of Shipment Modes
Airfreight is the fastest mode of shipment from India to Singapore. Sea freight is the most commonly used method of shipment due to the lower costs involved, and courier services are used for smaller packages.
Duration of Shipment
Generally, shipment from India to Singapore takes around one week. The time taken for a shipment to arrive at its destination depends on the model you choose to ship your item. If you opt for air freight, you can expect to receive your items less than one week. However, if you decide to opt for sea freight, you will have to wait more than a month in most cases. The choice of model depends on how urgently you need the item and how much you want to pay as freight charges.
List of Items Prohibited to be Imported in Singapore
Every country has its list of prohibited items under its laws and regulations. Here you can find a list of banned things imported in Singapore.
- Chewing gum
- Gumming labels
- Obscene publications and videos
- Endangered species of wildlife and their by-products
- All species of sharks’ fins and products derived from such fins
- Cigarette lighters of pistol or revolver shape
- Non-medical chewing tobacco and imitation tobacco products
- Master tapes, videotapes, compact discs (CDs), digital video discs (DVDs), etc., of pirated copyright material
- Under the Misuse of Drugs Act, Narcotics include cannabis, morphine, cocaine, heroin, methamphetamine, etc.
- Aerated/carbonated beverages or mineral water containing saccharin or its salts with an added flavoring
- Air Rifles
Why Should You Choose to Sell on Amazon Singapore?
The influx of entrepreneurs from India to Singapore has grown exponentially within the past few years. Many of them were looking for a better way to expand their market and found it in online selling. The country’s biggest seller platform, Amazon offers, has been providing millions of users worldwide with a wide range of products to choose from at competitive prices.
Amazon Singapore is home to several affluent and high-spending consumers who always look for unique products. By selling on Amazon Singapore, you can reach millions of potential customers and access the largest e-commerce marketplace in Asia.
- Exporting to Singapore from India | All You Need to Know
- Do I need to pay GST for export?
Ans: The export of goods or services is considered as a zero-rated supply. GST will not be levied on export of any kind of goods or services. A duty drawback was provided under the previous laws for the tax paid on inputs for the export of exempted goods.
- Is it easy to export to Singapore?
Ans: In line with Singapore’s business-friendly environment, the country’s import and export procedures are relatively efficient and simple, and the necessary permits and licenses are issued relatively quickly.
- What happens if cargo is not cleared by the importer?
Ans: If you do not file a bill of entry within 30 days of arrival of goods, the custodian of cargo can resell goods after obtaining necessary permission from customs. The importer needs to be given notice by the custodian in this regard about any such auction.