E-commerce Guide To Shipping From Philippines To Singapore (2024)

In 2023, the value of products exported from the Philippines to Singapore was nearly US$ 6.6 billion. Trade between the two countries has been growing at an annual rate of 5.07%, showcasing the immense opportunities for online e-commerce businesses. If you are an online retailer from the Philippines looking to expand your market, shipping from the Philippines to Singapore can be profitable. The Philippines offers a range of advantages, including lower production costs, an abundance of raw materials, and a highly skilled English-speaking workforce.  Additionally, Singapore’s strategic location as a global trade hub in Southeast Asia makes it an ideal destination for international shipments. In this blog, we’ll guide you through the essential steps to navigate the shipping process, ensuring efficient operations for your online business.

Philippines’ customs regulations when shipping from Philippines to Singapore

When shipping products from the Philippines to Singapore, understanding customs regulations is a crucial step. Compliance with these regulations helps you avoid unexpected delays and ensures your shipment moves smoothly across borders. Customs clearance and the further process can be broken down into the following steps:

Step 1: Register as an exporter

E-commerce businesses that plan to export products from the Philippines to Singapore should register with the Client Profile Registration System (CPRS) of the Bureau of Customs (BOC). This registration is necessary for all exporters and involves submitting required documentation to the BOC. The permits required to export can be found at the Philippines National Trade Repository. 

List of accrediting agencies for exporters:

Accrediting Agency of Exporters registered with Free Zone Authorities:

• Philippines Economic Zone Authority (PEZA)
• Clark Development Corporation (CDC)
• Subic Bay Metropolitan Authority (SBMA)
• Cagayan Economic Zone Authority (CEZA)
• Zamboanga City Special Economic Zone Authority
• Authority of the Freeport Area of Bataan.

Other Investment Promotion Agencies:

• Board of Investment, Tourism Infrastructure Enterprises Zone Authority
• Export Marketing Bureau
• Other exporters must be accredited with Philippine Exporters Confederation, Inc. and Customs bonded warehouse operators.

Key points to remember: 

• The CPRS accreditation must be renewed annually and can take about 15 business days.
• Specific types of exporters, like coffee exporters, might require additional registration.
• Businesses operating out of a special economic zone must register with the  Philippine Economic Zone Authority (PEZA).
• Businesses shipping from a free port zone must register with the specific free port. 

Step 2: Lodge an export declaration

An export declaration is a formal statement submitted to customs that provides detailed information about the goods being exported. This includes specifics such as the nature of the goods, their value, destination, and other relevant details. The declaration must be lodged through the BOC’s system, which helps customs authorities track and manage exports effectively.

Step 3: Submit required documents

When shipping from Philippines to Singapore you will need to submit documents to the Export Division of the Port of Loading by creating a ticket. This can be done using the BOC portal. 

• Print out of Export Declaration
• Proforma/Commercial Invoice
• Packing List
• Export license
• Customs Export Declaration;
• Other documents required by the BOC (Bill of lading, certificate of origin), packing list with a description of all products;

Step 4: Process the export declaration at the BOC export division

The ticket created will be assigned to a Customs Operations Officer (COO) of the Export Division of the Port of Loading. Approved Export Cargoes will then move on to the next stage, which involves paying duties and other charges through Authorized Agent Banks (AAB). This step is crucial to ensure that your goods are cleared for export.

Step 5: Choose a shipping partner

The fulfillment partner you choose plays a critical role when exporting from Philippines to Singapore. Consider these factors when selecting a shipping partner for your e-commerce business. 

1. Cross-Border Experience: Look for shipping providers with a strong track record in cross-border commerce between the Philippines and Singapore. Choose a partner experienced in IOR (Importer of Record), SOR (Seller of Record), and trade services to ensure compliance with customs regulations. A partner familiar with the specific logistics of e-commerce can offer better efficiency and faster handling. Locad offers extensive cross-border expertise and can help you easily navigate local laws. 

2. Freight Options Tailored to Business Needs
   • Air Freight: For businesses selling higher-value items or products with urgent delivery needs, air freight offers a faster delivery option. Though more costly than sea freight, air freight is ideal for reducing transit time. Air Freight typically takes 1-3 days to ship from Singapore to Philippines.
   • Sea Freight: Sea freight is suitable for larger, bulk shipments that are less time-sensitive (5-7 days to reach). With options like Full Container Load (FCL) for high-volume shipments or Less than Container Load (LCL) to share container space, sea freight is a cost-effective choice. 

3. Freight Forwarding Solutions: Freight forwarders can simplify logistics management for e-commerce by handling all aspects of the export process, including documentation, carrier coordination, and customs requirements. 

Locad’s Freight service (via air and sea) manages every aspect of transportation, from customs clearance to destination handling at the warehouse.

3. Customs Documentation and Compliance: Cross-border shipping requires specific documentation to clear customs. The right partner will assist with customs requirements, including tariff classification, paperwork submission, and managing regulatory compliance. Locad’s Importer of Record & Seller of Record services can help Philippine e-commerce brands navigate through Singapore’s complex import and selling laws, helping you sell without registering as a local entity!

4. Cost and Delivery Speed: E-commerce demands a balance between cost and speed. While express or air freight may fulfill customer demands for fast delivery, sea freight can be more economical for restocking larger quantities of goods with flexible delivery timelines. Consider your average order size and your delivery promises to determine which option suits your business best. With Locad, you get tailor-made solutions that suit your business the best without compromising on your budget

5. Real-Time Tracking:  Real-time tracking covers two main stages: when moving inventory from the Philippines to Singapore and the last-mile delivery within Singapore. During the cross-border stage, tracking helps monitor shipments and address any delays. For the last-mile stage in Singapore, tracking ensures customers know exactly where their orders are while helping your team resolve delivery issues and improve route efficiency. Locad’s logistics platform provides real-time tracking across both stages, with updates every 3 minutes. This ensures smooth cross-border shipping and reliable last-mile delivery, giving both your business and your customers peace of mind.

6. Scalability and Seasonal Flexibility: E-commerce demand can fluctuate, especially around sales and holiday seasons. The right logistics partner will offer scalable solutions to handle higher volumes during peak times. With Locad, you gain access to flexible warehousing and dedicated solutions to help you scale. 

Taxes and duties while shipping from Philippines to Singapore

If you are an online retailer looking to ship from Philippines to Singapore, here’s an overview of the different taxes involved: 

1. Goods and services tax (GST)

As of January 1, 2024, Singapore charges a 9% GST on imported goods valued over S$400. GST also applies to goods worth S$400 or less if they’re imported by air or post, ensuring all imported goods are taxed at the current rate. Although consumers in Singapore ultimately pay this tax, businesses are responsible for collecting and sending it to the government. The GST is calculated based on the Cost, Insurance, and Freight (CIF) value of the item, along with any other duties and related fees. For non-dutiable goods, GST is based on CIF plus any commissions or handling charges, even if they aren’t listed on the invoice.

2. Customs and excise duty

Some goods imported to Singapore may also have customs or excise duties, which apply only to specific items such as:

• Alcoholic beverages
• Tobacco products
• Motor vehicles
• Petroleum products and biodiesel blends

These duties are based on either a percentage of the total shipment value or a specific rate per unit, depending on the item.

An overview of the import flow when shipping from Philippines to Singapore

As an e-commerce business owner, if you are shipping products from Philippines to Singapore you need to make a declaration to Singapore Customs. Before we look at the steps, here are some guidelines to keep in mind: 

• Goods and Services Tax (GST) needs to be paid for non-dutiable goods. This means that, even though certain goods may not incur customs duties, they are still subject to GST upon import into Singapore. Many items, such as clothing, electronics, and household goods, are considered non-dutiable. 

• Both GST and duty need to be paid for dutiable goods (if these goods are imported for local consumption).

• Duty and/or GST are suspended when products remain inside a Free Trade Zone (FTZ). 

• Duty and GST should be paid if goods are moved from the FTZ directly into Singapore for sale or local use.

• Duty and GST remain suspended if goods are transferred from an FTZ to a Customs-approved location, like zero-GST warehouses, as long as they remain there.

• Duty and GST are not charged for goods with exemptions or relief or for goods imported through special schemes, such as:
  • Major Exporter Scheme (MES)
  • Approved Import GST Suspension Scheme (AISS)
  • Import GST Deferment Scheme (IGDS)

Singapore’s customs clearance when importing products from Philippines to Singapore

Businesses must follow several key steps to meet Singapore’s regulatory requirements: 

Step 1: Register for UEN and activate your customs account

To import goods into Singapore, your business needs a Unique Entity Number (UEN) from the Accounting and Corporate Regulatory Authority (ACRA) or another approved agency. Once you have your UEN, activate your Customs Account to apply for import permits.

Step 2: Check if your products are controlled

Before importing, confirm if your goods are subject to restrictions. Some items are considered “controlled goods” and require specific licenses or permits from the relevant Competent Authorities (CAs). You can check if your goods are controlled by using the Harmonized System (HS) code or CA product code. 

Step 3: Apply for interbank GIRO

You must maintain an Inter-Bank GIRO (IBG) with Singapore Customs to complete payment of duties, taxes, fees, penalties, and other service fees. The completed application for interbank GIRO can be mailed to Singapore Customs’ address. Once approved, this account allows you or your Declaring Agent to make direct payments from your bank account for all import-related fees.

Step 4: Furnish security

If your import involves dutiable goods, temporary imports, or operations of licensed premises, you must furnish security. This can be in the form of a Banker’s Guarantee, a Finance Company Guarantee, or an Insurance Bond. This acts as a safeguard for compliance while importing inventory from the Philippines to sell in Singapore.

Step 5: Obtain a Customs Import Permit

Each import shipment requires a permit. You can either:

• Hire a Declaring Agent to obtain the permit on your behalf or 
• Manage it yourself by applying through the TradeNet system and registering as a Declaring agent.

All permit applications must be submitted via TradeNet, which is accessible via an approved software vendor or the Government front end application. Philippine e-commerce sellers seeking to partner with Declaring Agents to sell in Singapore may have to spend a lot while hiring Declaring Agents.

Step 6: Obtain documents for cargo clearance

Import permits havea validity period. Before you proceed with the clearance of your products, ensure that your permit is within validity. Requirements may vary depending on whether your cargo arrives by sea or air.

• Documents required for containerized cargo
  • When importing by sea, you are not required to present the printed copy of the customs permit and supporting documents to the checkpoint officers.
  • When importing by air, you are required to produce the customs permit and supporting documents such as invoice, packing list and Bill of Lading/Air Waybill, to the checkpoint officers. 

• Documents required for conventional cargo
  • Present the goods, printed copy of the customs permit, and supporting documents such as invoice, packing list and Bill of Lading/Air Waybill, to the checkpoint officers at the time of cargo clearance for verification.

• Documents required for  Cargo Clearance of Air Imports Granted GST Relief at Changi Airfreight Centre Checkpoint
  • Submit a summary list, together with the invoice and House Airway Bill (HAWB)/consignment note for each parcel/consignment. 

Step 8: Retain trade documents

Retain all import documents, such as invoices, permits, and packing lists, for five years in case they are needed for customs audits or inspections. You can store these documents physically or digitally.

Locad can help you simplify shipping from Philippines to Singapore

Shipping products from Philippines to Singapore can be complex, involving multiple steps like freight forwarding, customs clearance, and final delivery. Locad’s cross-border service streamlines this process, taking care of everything from export formalities to last-mile delivery. 

1. Freight Forwarding from Supplier’s Warehouse: Locad handles freight forwarding starting from the supplier’s drop-off at the origin warehouse in the Philippines. This includes both air and sea freight options. 
2. Export and Import Clearances: Locad manages all necessary export clearance in the Philippines and import clearance upon arrival in Singapore. At the destination, Locad’s Importer of Record (IOR) services take over to handle customs and ensure regulatory compliance.
3. Destination Handling and Warehouse Delivery: Once the goods clear import processes, they are moved to a destination warehouse in Singapore. Locad offers continued handling services from the port to the warehouse. 
4. Fulfillment and Last-Mile Delivery: Locad’s distributed warehouse network helps you store closest to your customers and pick cost-effective last mile carriers. After reaching the destination warehouse, products are prepared for delivery to customers, ensuring fast final delivery.
5. Value-Added Services (VAS): Locad provides additional services, including product registration and notifications, to support brands once products are ready for sale. When a brand’s first sale occurs, Locad’s Seller of Record (SOR) services activate, assisting with the compliance and distribution aspects of e-commerce. 

Conclusion

Shipping products from the Philippines to Singapore can be a complex process, but with the right preparation, it becomes manageable. By following the necessary export and import requirements, e-commerce businesses can ensure smooth cross-border shipments. The importance of choosing the right logistics partner cannot be overstated. With Locad, businesses can simplify this process by relying on our comprehensive services, which include export and import clearances, managing inventory, and providing last-mile delivery. Our tailored solutions ensure that goods are moved efficiently from the supplier’s warehouse in the Philippines to their final destination in Singapore.