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Shopping overseas? 5 tips to avoid getting stopped at Customs
Shopping overseas? 5 tips to avoid getting stopped at Customs

Straits Times

time03-06-2025

  • Straits Times

Shopping overseas? 5 tips to avoid getting stopped at Customs

Noting the Customs rules upon arrival in Singapore can help travellers avoid unnecessary trouble at Changi Airport. ST PHOTO: KUA CHEE SIONG SINGAPORE – If you are planning to shop overseas during the June school holidays, it is essential to know how to navigate Customs regulations such as duty-free concession and GST relief . In late May, nearly 200 travellers were caught at Singapore's land, sea and air checkpoints for failing to declare more than $20,000 in cash, and evading taxes on tobacco and other goods. These included items such as collectible toys, luxury goods, branded shoes and liquor exceeding the duty-free allowance. Immigration and Checkpoints Authority officers conduct selective searches at the checkpoints. Travellers who fail to declare items in excess of allowances or make an incorrect declaration must settle their Customs offences with an out-of-court composition sum of up to $5,000 or prosecution in court, depending on the severity of the offence. During a week-long operation by government agencies between May 21 and May 27, a traveller was caught for not declaring his GST-payable items, which included collectible toys and a pair of branded shoes. PHOTO: SINGAPORE CUSTOMS Shopping is a quotidian part of travel, especially when chasing hard-to-find items or better prices abroad. To avoid trouble when you return to Singapore, here are some essential tips to keep in mind. 1. Know the value of tax-free goods you can bring in All goods brought into Singapore are subject to goods and services tax, currently pegged at 9 per cent. However, travellers are granted GST import relief based on the duration of their trip. For those who have been overseas for 48 hours or more, they are entitled to GST relief of up to $500. For trips under 48 hours, the value is capped at $100. Goods exceeding the GST import relief will be taxed. PHOTO: ST FILE These amounts apply to the total value of goods bought overseas, excluding liquor and tobacco. Any value above the relief limit is taxable, and travellers are required to declare it upon or prior to arrival. Singapore work permit, employment pass, student pass, dependent pass or long-term pass holders, as well as crew, are not entitled to GST import relief. 2. Avoid posting your overseas loot online It may be tempting to show off your new purchases on social media, especially exclusive or limited-edition buys. But Mr Kor Bing Keong, GST leader at professional services firm PwC, who advises corporate clients on GST transactions and compliance, discourages it. Travellers have to be mindful of the risk involved in posting about one's purchases on social media, he says. 'Practise posting mindfully so you don't run the risk of drawing so much attention that it makes it difficult for the authorities to ignore.' Posting about high-value goods and failing to declare them may also leave a digital paper trail that could work against you in the event that customs officers trawl online posts. Dr Lynda Wee, an adjunct associate professor at NTU's Nanyang Business School, adds that the social media landscape is transparent. 'Once you post publicly online, everybody gets to see you. So, say you are stopped at Customs and the authorities are looking for evidence. You may have to explain yourself if they come across your post,' she says. 3. Note the most 'risky' items that travellers typically fail to declare Dr Wee says travellers often assume items purchased abroad that can be immediately worn or used while overseas do not need to be declared. These include jewellery, designer bags and clothes. Used articles and personal belongings refer to items that the traveller already had before departure from Singapore, and are not subject to any tax. ST PHOTO: LIM YAOHUI The Singapore Customs website states that 'items purchased or acquired abroad by the traveller to bring into Singapore' are subject to GST, regardless of whether a foreign sales tax or value-added tax has been paid. Even if the price tag or packaging was removed, or if the item was purchased from a second-hand shop, it will be subject to GST. Used articles and personal belongings refer to items that the traveller already had before departure from Singapore. Dr Wee says the declaration system relies not only on travellers being well-versed in customs rules and regulations, but is also largely honour-based. This places much of the burden on customs officers, who must visually detect undeclared goods and assess whether items are new or dutiable. She adds: 'In Changi Airport, the arrival process is designed to be fast and efficient for travellers, so they have random spot checks instead of having everyone put their luggage through scanning before exit. 'I think travellers figure that because the checking process is quite loose, they can take a gamble on bringing items in without declaring.' 4. Gifts are also subject to GST It is a common misconception that gifts are exempt from GST, but what matters to Customs authorities is the total value of goods brought in. As such, gifts that exceed the GST import relief threshold must be declared. Presents bought or received abroad, such as luxury bags, may be subject to GST upon return to Singapore. PHOTO: UNSPLASH For example, if a friend overseas surprises you with a luxury bag worth $5,000 and you bring it back to Singapore, GST will be charged on the value exceeding your relief allowance. If no receipt is available, Customs officers will assess the value of the goods based on the value of identical or similar goods when calculating the GST payable. Mr Kor says if physical receipts are not available, having a digital copy of the receipt will be useful. 5. If unsure, ask or declare Mr Kor says the best way to ensure that travellers do not flout customs regulations is to check the allowances on the Singapore Customs website. Singapore Customs also provides digital declaration options via the Customs@SG web portal and mobile app. These platforms allow travellers to declare taxable goods before arriving, pay the relevant taxes in advance and skip paperwork at the checkpoint. To further streamline the process, Dr Wee says she typically packs goods that will need to be declared in a separate bag or at the top of her luggage for easy access at the airport. If you are unsure, ask or declare. It is better to do so than to run the risk of being caught and penalised. For more information, go to Sarah Stanley is a journalist at The Straits Times who covers travel, lifestyle and aviation. Join ST's Telegram channel and get the latest breaking news delivered to you.

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