Effective Soon! Stricter Customs Regulations, Penalties Up to SGD 10,000 or Imprisonment

Logistics News

14-Aug-2024

Shippers and carriers, be prepared: Transporting goods through the Port of Singapore will face greater operational challenges due to a new set of customs rules that will take effect on September 1.


According to the revised "Free Trade Zone (FTZ) System" implemented by Singapore authorities in March 2024, the regulations require the advance submission of export/import/transshipment cargo information. The FTZ regulations specify:


· For long-haul trade, import cargo information must be submitted 12 hours before the vessel arrives at the berth in the Port of Singapore.


· For short-haul trade, this requirement must be fulfilled before the vessel departs.


· For export cargo, the application must be submitted within 24 hours after the vessel's departure.


Failure to comply with these regulations could result in significant penalties and other impacts on ship agents, ultimately affecting the cargo owners.


In a customer advisory, Hapag-Lloyd stated: "Singapore Customs will review each case of missing, delayed, or inaccurate submission of Bill of Lading (B/L) data to determine the cause of the violation and the appropriate penalty."


The carrier also pointed out: "If any shipping agent/freight forwarder fails to comply with the provisions of this circular regarding the submission of information under Section 14N(2) of the Act without reasonable excuse, it constitutes an offense under Section 14N(3) of the Act, and upon conviction, will be liable to a fine not exceeding SGD 10,000 or imprisonment for up to 12 months, or both."


According to industry observers, given the complexity of global supply chains and the typically involved amount of data management, any regulatory reform with time-bound compliance requirements could prove challenging for service providers.


It was noted that in 2018, New Delhi also designed and launched a new cargo manifest system—somewhat similar to the U.S. 24-hour Advance Cargo Manifest rule—but due to various industry concerns, its implementation has been slow or delayed. This framework, known as the "2018 Sea Cargo Manifest and Transshipment [SCMT] Regulations," requires sea carriers and other stakeholders to submit manifest data before a vessel arrives at or departs from Indian ports.


The latest indications suggest that after a series of deadline extensions, the regulation will take effect on August 31.

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