Declare Total Value of a Parcel for GST Calculation

Important GST and Declaration Guidelines for Sea Shipping Parcels

1. (1) GST on Sea Shipping Parcels
   All sea-shipping parcels are subject to a 9% Goods and Services Tax (GST), which must be paid along with the shipping fee. The GST is remitted to Singapore Customs during the import clearance process. Customers are required to accurately declare the total value of their each parcel in Singapore dollars—not the unit price of individual items—before their parcels can be included in a shipping order.  Example: If an item costs S$5 per unit and you are shipping 200 identical items, you must declare S$1,000—not S$5. Once declared, the GST amount will be automatically calculated.

2. (2) Under-Declaration is a Serious Offense
   Misrepresenting the value of a parcel is a serious offense under the Singapore Customs Act. Customers must accurately declare the total value of their each parcel before submitting it for shipping.

3. (3) Parcel Inspections and Risks of Under-Declaration
   Singapore Customs routinely inspects parcels during the clearance process. Parcels suspected of under-declaration are often flagged for further investigation. To avoid potential fines or penalties, please ensure accurate declaration of the total parcel value. A common mistake is declaring the unit price instead of the total value.

   • Example: If an item costs S$5 per unit and you are shipping 200 identical items, you must declare S$1,000—not S$5.

4. (4) Why Taobao2SG Emphasizes Accurate Declarations
   Some customers ask why other freight forwarders do not enforce strict declaration policies while Taobao2SG does. The reason is simple:

   • Taobao2SG is a Singapore-registered company and fully complies with Singapore laws and import regulations.
   • Many China-based freight forwarders operate without a legal presence in Singapore and do not assist customers when parcels are flagged or inspected by Singapore Customs.
   • If a parcel is held for under-declaration, China-based forwarders cannot communicate with Singapore Customs on behalf of their customers, which often results in confiscation or disposal of the goods.
   • At Taobao2SG, we take business integrity and customer service seriously. By ensuring proper declaration, we help protect your shipments and ensure smooth customs clearance.

5. (5) Providing Proof for Inspected Parcels
   If your parcel is inspected by Singapore Customs, please provide proof of purchase for the declared value immediately.

6. (6) Declaration of Zero-Value Parcels
   If your parcel contains items with zero commercial value, such as gifts or replacement products sent by sellers, you must provide supporting documentation to expedite customs clearance.

   • Example: If a seller sends a replacement for a faulty item, provide proof of the original purchase and correspondence with the seller.
   • Parcels without valid proof of value will not pass customs clearance.
   • Do not inaccurately declare values such as S$1 or S$0.50 for a zero-value parcel, as this constitutes a false declaration.

7. (7) GST Declaration for Corporate Clients
   Corporate clients who are GST-registered companies and wish to declare GST under their company's TradeNet account must inform us in advance. We can arrange independent clearance for a fee of S$35 per shipment (subject to change based on Singapore Customs regulations).

8. (8) GST Waiver for Returning Singapore Residents
   Singapore citizens, permanent residents, and long-term pass holders who return from China within six months and wish to ship personal belongings back to Singapore are exempt from GST payment on those items.

   • This exemption does not apply to dutiable goods such as motor vehicles, cigarettes, wine, and liquor.

For a hassle-free shipping experience, please ensure all declarations are accurate and compliant with Singapore Customs regulations. Taobao2SG is committed to providing reliable and transparent shipping services while safeguarding your parcels.

How to Declare Parcel Value and GST