Implementation of Revised Free Trade Zones Regime from 1 March 2024: Adjustment Periods Implemented in Relation to Provision of Information on Movement of Goods

The Free Trade Zones (Amendment) Act 2023 (“Amendment Act“) and related subsidiary legislation came into operation on 1 March 2024. The Amendment Act amends the Free Trade Zones Act 1966 (“Act“) and makes consequential amendments to the Customs Act 1960.

The changes to the Act, which include a licensing regime, update and strengthen the Free Trade Zones (“FTZ“) regime by enabling the better detection, deterrence and prevention of money laundering, associated predicate offences and terrorism financing, and protecting Singapore’s financial system against illegal activities and illicit fund flows.

Key changes to the FTZ regime include:

(a) Licensed FTZ operators. The administration, maintenance and operation of FTZs will be by licensed FTZ operators instead of authorities.

(b) Licensing framework. Licensed FTZ operators will be subject to a licensing framework that includes: (i) applications for an FTZ operator licence or renewals which must be made to the Director-General of Customs (“Director-General“) in the prescribed form; (ii) licence conditions that may be imposed by the Director-General; and (iii) empowerment of the Director-General to issue directions. Failing to comply with a licensing condition or direction can result in a fine of up to S$10,000.

(c) Directions to FTZ cargo handlers. The Director-General may issue directions to a FTZ cargo handler. Directions include, among others, those relating to the monitoring and managing of movement of goods within the FTZ and requiring the FTZ cargo handler to implement systems and procedures to monitor and ensure the security of any premise within the FTZ. Non-compliance attracts a fine of up to S$10,000.

(d) Submission of reports. The Director-General can require licensed FTZ operators and FTZ cargo handlers to submit and retain reports containing prescribed information. Non-compliance attracts a fine of up to S$10,000 and/or a jail term of up to three years.

(e) Suspicion of contraventions. Where any licensed FTZ operator or FTZ cargo handler has reason to suspect that any goods in their possession, custody, charge or control contravene any written law, they must notify the Director-General. Non-compliance attracts a fine of up to S$5,000.

(f) Information on movement of goods. Shipping agents and air cargo agents for any goods brought or intended to be brought into a FTZ must give the FTZ cargo handler for that FTZ the prescribed information contained in the Bill of Lading or airway bill for those goods. The FTZ cargo handler must transmit the received information to the Director-General. By way of Circular No: 02/2024 Singapore Customs provided details as to the form and manner for submission of the required information and announced that:

  • To allow shipping agents and specified FTZ cargo handlers more time to fully comply with the requirements, they will allow a six- month adjustment period (1 March 2024 – 31 August 2024) for the industry to make any necessary further adjustments to their work processes for the submission of information on containerised cargo.
  • Shipping agents and specified FTZ cargo handlers are exempted from the requirements to submit information on non-containerised cargo until further notice.
  • Air FTZ cargo handlers and air cargo agents will be temporarily exempted from requirements to provide information. Singapore Customs will engage the air cargo community and relevant stakeholders to explore the setting up of the necessary system linkages and identify industry concerns prior to formalising any future requirements.

Click on the following links for more information:

Available on the Singapore Customs website at www.customs.gov.sg:

Available on the Singapore Statutes Online portal at sso.agc.gov.sg:

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