23 June, 2017
Pursuant to Circular No. 06/2017 issued on 14 June 2017, Singapore Customs revised the End-User Statement (EUS) format for strategic goods permits in Singapore. While a single EUS format had been used previously for all permits under the Strategic Trade Scheme (STS), Singapore Customs has now introduced two different EUS formats for STS Bulk Permits and STS Individual Permits respectively, in light of the diverse nature of business operations and business needs involved in strategic goods.
We discuss the changes in further detail below.
1. Overview of changes to the EUS formats
Changes applicable to the EUS format for both STS permits
Under the previous EUS format, the end-user would have to indicate the value of the strategic goods exported. This requirement is now removed for the revised EUS formats for both STS permits.
The new format further clarifies that the EUS applies to all exports of strategic goods, regardless of whether such goods were loaned, gifted, purchased, received, whether directly or indirectly, from the exporter. This change is in line with the Singapore government’s strict stance in deterring and pre-empting increasingly sophisticated and indirect means of illicitly transferring strategic goods.
Changes applicable to the EUS format for STS Bulk Permits
The new format states that the new EUS for STS Bulk Permits will be valid for a period of three years from the date it has been signed, or up till the validity period of the relevant STS Bulk Permit. Further, the previous requirement to indicate the quantity of the strategic goods exported has now been removed. The new EUS would also have to be signed by an authorised signatory who is at least of a managerial level, as compared to the previous EUS format which required an authorised signature accompanied with the company stamp.
The new EUS format for STS Bulk Permit will be implemented with immediate effect. For existing STS Bulk Permit holders, the EUS format will apply in the following cases:
(a) where the existing STS Bulk Permit holder has a new end-user; and
(b) in relation to an existing end-user, where there are changes to the EUS or where the existing STS Bulk Permit holder renews his STS Bulk Permit, whichever is earlier.
Singapore Customs has also announced that the new EUS format for STS Bulk Permits will supersede any EUS facilitations granted before 1 January 2015.
Changes applicable to EUS format for STS Individual Permits
The new EUS format for STS Individual Permits will be implemented with effect from 1 July 2017. Apart from the changes mentioned above, the new EUS format for STS Individual Permits is broadly similar to the previous EUS format issued by Singapore Customs.
2. How these changes may affect you
While we understand that it was previously not compulsory to use the EUS format provided by the Singapore Customs, although such use was generally encouraged, the new EUS formats appear to be mandatory. In other words, all new EUS would likely have to comply with the applicable EUS formats.
The changes would also affect existing STS Bulk Permit holders who have entered into EUS facilitations and arrangements with the Singapore Customs before 1 January 2015. In particular, all concessionary arrangements reached before this date in relation to EUS would now be superseded by the requirement to submit EUS in accordance with the revised format for STS Bulk Permits.
Traders dealing with strategic goods should immediately evaluate the impact of the rollout of these new EUS formats and requirements, and review the form of EUS it currently utilizes. Traders should be prepared to use the revised formats where necessary.
In particular, traders which have set up supply chain or export control internal processes relying on Singapore Customs' EUS facilitations granted earlier should immediately evaluate whether and how the removal of such EUS facilitation may affect its supply chain and export control processes.
The new EUS formats can be downloaded from here.
For further information, please contact:
Ken Chia, Partner, Baker & McKenzie
ken.chia@bakermckenzie.com
