(Last update: 23 Apr 2011)

Business etiquette

Business tips

Relationship-building is a very important aspect to doing business and is best achieved outside of the workplace, usually during lunch or dinner. It is important to exchange business cards upon introduction. Business cards are to be received with two hands and closely inspected before placing it into your cardholder.

Please understand the structure of Chinese, Malay and Indian names. Many Singaporeans adopt a European name. It is important to use title plus family name upon introduction. The European (or given) name is to be applied only once you are confident that a relationship has developed.

For men it is common practice to wear short sleeves and open neck shirts. However, Australian visitors on a first call should consider wearing long sleeve shirts and tie. A jacket is considered very formal. For women, a formal blouse and skirt is the usual attire, and stockings are optional.

There are many useful publications on business culture in Singapore such as 'Culture Shock Singapore' and 'Kiss, Bow or Shake Hands: How to do business in 60 countries'. Visitors may want to read these books before their visit.

Please also note:Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff

Two-column tariff based on the Harmonised System. Duties may be either ad valorem, assessed on the CIF value (Incoterms 1990), or specific, expressed in Singapore dollars per specified unit of quantity.

Singapore is a member of the Association of South East Asian Nations (ASEAN). Preferential rates are applied to imports from other ASEAN members.

As a signatory to the ASEAN, Australia, New Zealand Free Trade Agreement (AANZFTA) which entered into force on 1 January 2010, AANZFTA is expected to deliver new opportunities and create greater certainty across the board for Australian exporters and investors in Singapore.

Australian exporters can now access Austrade’s AANZFTA tariff finder. The tool provides an easy reference for Australian exporters who want to know what the applicable tariff rate is for their products under the AANZFTA.

The Port of Singapore includes a duty-free zone where goods in transit may be stored, resorted or repacked without incurring duty.

The Singapore Customs provides comprehensive information for importers and exporters:

Singapore Customs
55 Newton Road
#10-01 Revenue House
Singapore 307987
Tel: +65 272 8222
Fax: +65 6355 2000
Email: customs_documentation@customs.gov.sg

Non-tariff barriers

Singapore does not impose import quota restrictions with most goods imported under open general licence. However, significant import duties are levied on a small range of items, such as liquor, tobacco, petroleum products and motor vehicles. A list of controlled imports into and exports out of Singapore is available on the Singapore Customs website: www.customs.gov.sg/leftNav/trad/imp/Goods+Subject+to+Control.htm.

The entry of a range of consumer manufactures may be subject to acceptance by different government statutory boards.

Rice imports require an import license issued by EnterpriseOne, managed by SPRING Singapore.

Import permits issued by the Singapore Agri-Food & Veterinary Authority are required for a specified list of plant and animal products.

The importation of cosmetics, medicines, medical devices is regulated by Health Sciences Authority.

Electrical regulations are generally modeled on the British Standards specifications. Increasingly, IEC standards are adopted.

For import of all goods (including controlled and non-controlled items) into Singapore, you are required to:

• Obtain an IN Permit through TradeNet® before goods are imported into Singapore.
• Pay the duty and/or Goods and Services Tax (GST) due at the prevailing rate at the time of importation.

(Singapore Customs - www.customs.gov.sg/leftNav/trad/Import+and+Export+Procedures.htm)

Product certification, labelling and packaging

Labelling should indicate:

• country of origin
• packaging dimensions
• name and address of manufacturer
• composition
• expiry dates

Foodstuffs (including beverages), and drugs are subject to, and must comply with specific detailed labelling requirements.

Specified metric sizes are mandatory for a number of prepacked consumer items, including:

• butter
• rice
• white sugar
• wheat flour
• cooking salt

The labelling and claims for health supplements, cosmetics and medicines should comply with the guidelines set by Health Sciences Authority.

Packing should be sturdy and should guard against extreme heat in the tropics and high humidity (frequently over 90 per cent) and possible brief periods of storage in the open. All wooden packaging and forest produce must be certified as being free from infestation by insects and fungi. Dutiable goods or goods whose importation is restricted, should not be packed in the same package or container as non-dutiable or unrestricted goods.

Methods of quoting and payment

Quotes preferably in US dollars or Australia dollars, CIF (Incoterms 1990). Secured payment terms are initially recommended.

Suppliers not wishing to reveal the commission of local agents should include such commission in the quotation.

Payment by letter of credit should indicate the appropriate Trade Registration Number.

Documentary requirements

Pro-forma invoice

Used for the opening of payment terms. Three copies are required.

Bill of lading/Airway bill

Two copies are required. To Order bills are acceptable.

Packing list

Two copies are required.

Certificate of origin

Two copies are required. The invoice must show:

• number and description of packages
• marks and numbers of individual packages
• a detailed description of the goods
• gross and net metric weights or quantity - FOB and CIF values (Incoterms 1990)
• country of origin
• place of shipment and destination of the goods
• must be signed by the exporter or shipper

Certificate of origin must be completed for goods on which preference is claimed. The certificate of origin must contain:

• a description of the goods
• details of their total invoice value
• a signature of the proprietor, a partner or principal official of the manufacturing or supplying firm (the name of the person signing and their position in the firm must be stated)

The following supporting statements must be supplied:

• that the person signing has the means of knowing the statement in the certificate to be correct
• that the person signing is duly authorised to issue the certificate on behalf of the manufacturer, producer or grower and, if appropriate, the supplier
• that the goods are the produce of manufacturer of the Commonwealth country named
• if grown or produced, the goods were grown or produced in and consigned from named Commonwealth country or countries
• if manufactured, not less than 25 per cent of the goods is the result of either labour or the use of materials originating in the named Commonwealth country or countries.

Public health requirements

The importation of the following must comply to Singapore Agri-Food & Veterinary Authority (AVA) import requirements:

• Pets and laboratory animals
• Plants and plant products
• Meat, fish
• Fresh fruits and vegetables
• Eggs (fresh/ salted/ preserved/ processed)
• Processed food
• Irradiated food
• Insects
• Animal feed
• Veterinary biologics and pathogens

Imports of controlled chemicals are subject to requirements as regulated by the National Environment Agency.

The import of medicines, medical devices and cosmetics is regulated by Health Sciences Authority.

Censorship regulations

Printed matter (including advertising posters and catalogues) and films are subject to inspection and approval by the Ministry of Information, Communication and the Arts (Licensing Section).

Insurance

Normal commercial practice

Weights and measures

The metric system

Setting up in Singapore

Setting up an overseas office can be expensive and usually, but not always, follows an initial market entry, working through agents or distributors. The benefits to Australian business people of setting up offices overseas can be significant.

You need to think about:

• The office location – convenience to customers, security and social attitude towards the integrity of the neighbourhood.
• Costs per metre to rent or lease.
• Utilities, eg. availability of water, power, electricity, telephone, fax and Internet connections.
• General building access, eg. user-friendliness of reception area and disabled access.
• Parking for visitors and tenants.
• Amenities, eg. meeting room, tearoom, toilets.
• The lease agreement exit clause - consult a lawyer who specialises in property agreements.
• Value of using property consultants (recommended).

Austrade offices overseas can assist companies wanting to set up representative offices by:

• Providing advice based on their previous experience in helping Australian companies.
• Recommending experienced legal and taxation experts.
• Finding suitable property consultants.
• Connecting you to other companies who have already gone down this path and who will know of pitfalls and short-cuts.
• Introducing you to major accounting firms which will know the practical steps in setting up offices.

The Singapore Economic Development Board provides more detailed information about setting up an office in Singapore.

Taxation

Since the beginning of 2004, the consumption tax levied on most goods and services (GST) has been increased from four per cent to seven per cent. Singapore has low company and personal taxation rates. Other forms of taxes include property, entertainment, customs duties, estate duties, etc.

A goods and services tax (GST) of seven per cent, assessed on the landed duty-paid value, is levied on all imports.

Excise taxes are levied on a few items including alcoholic beverages, tobacco products, petroleum products and motor vehicles.

Within the Ministry of Finance, the Inland Revenue Authority of Singapore (IRAS) acts as the agent of the government and provides service in administering, assessing, collecting and enforcing payment of taxes. IRAS also advises the government and represents Singapore internationally on matters relating to taxation.

Intellectual property protection

Visit Intellectual Property of Singapore for registration and information on intellectual property protection.

Alternative, lawyers specialising in intellectual property protection could be of further assistance.

Banking and finance

Singapore is a well established and diversified financial sector. In just over four decades, Singapore has established a thriving financial centre of international repute, serving not only its domestic economy, but also the wider Asia-Pacific region and in some instances, the world.

Singapore's financial centre offers a broad range of financial services including banking, insurance, investment banking and treasury services.

A key aspect of Singapore’s financial centre is its deep and liquid capital markets. With one of the more well-established capital markets in Asia-Pacific, the Singapore Exchange (SGX) is the preferred listing location for more than 200 global companies. Today, Singapore has grown to be the largest real estate investment trust market in Asia (excluding Japan) and also provides an extensive offering of investments in business trusts of shipping, aviation and infrastructure assets.

Singapore’s bond market has also grown significantly. With an extensive range of both Singapore government securities and foreign corporate bonds available, Singapore offers fixed income investors a wide range of investment opportunities.

As one of the top five most active foreign exchange trading centres in the world, Singapore is also the second largest over-the-counter derivatives trading centre in Asia, and a leading commodities derivatives trading hub.

With total assets under management of around S$1 trillion, and which continues to see steady growth, Singapore is also recognised as one of the premier asset management location in Asia.

(Source: Monetary Authority of Singapore)