Ensuring Accurate Declarations by Traders and Logistic Firms that Goods Transshipped through Singapore Do Not Become Singapore-origin Goods

Mr Edward Chia Bing Hui asked the Deputy Prime Minister and Minister for Trade and Industry (Trade) in light of recent United States concerns over illegal transshipment and false country-of-origin declarations involving Singapore, what steps is the Ministry taking to (i) clarify Singapore’s position that goods transshipped through Singapore do not become Singapore-origin goods (ii) ensure accurate declarations by traders and logistics firms and (iii) safeguard Singapore’s reputation as a trusted, open and rules-based trade hub.

Mr Speaker, on 13 August 2026, the White House’s Office of Trade and Manufacturing Policy issued a report titled “The Great Transshipment Scam”, in which more than 40 economies were flagged for “elevated illegal transshipment risk”. In the report, Singapore was placed in the Tier 3 list of countries. Countries in this tier were characterised as having low absolute illegal transshipment volumes but possessing features that make them attractive opportunistic targets for re-routing.

As Singapore is one of the world’s busiest trading hubs, we take trade compliance seriously. Companies transshipping goods through Singapore must fully comply with our laws and regulations. All customs declarations, including transshipment permit applications, are required to be accurate and truthful under the Customs Act, and the Regulation of Imports and Exports Act. Incorrect declarations, including declarations pertaining to the country or region of origin of the goods, may amount to an offence and result in criminal penalties ranging from fines to imprisonment, depending on the offence committed and the severity. Goods that are transshipped through Singapore, without undergoing substantial transformation locally, cannot be declared as Singapore-origin goods. In June 2025, Singapore Customs issued a Circular to all traders and declaring agents reiterating the importance of accurate "Country/Region of Origin" declarations in their permit applications.

Sir, Singapore Customs adopts a risk-based and targeted approach towards enforcement, which requires international collaboration. For instance, on 14 August this year, Singapore Customs charged a company and three individuals for their alleged involvement in a scheme to falsely declare the origin of bedding products and other goods exported from Singapore to the US, in an apparent attempt to circumvent import duties imposed by the US.

Singapore places great importance on our reputation as a trusted and reliable business hub and we will act decisively to preserve it. We are also committed to working with our international partners to address tariff circumvention concerns.