Tax levied on imports (and sometimes on exports) by the customs authorities of a country to raise state revenue, and /or to protect domestic industries from more efficient or predatory competitors from abroad. Also called tariff, duty is based generally on the value of goods (known as ad valorem duty) or upon the weight, dimensions or some other criteria of the item.
All goods imported into or manufactured in Singapore, which can be charged duties are subject to Customs duty. There are four broad categories of dutiable goods in Singapore, they are intoxicating liquors, tobacco products, motor vehicles and petroleum products. The duty rates are indicated in the Schedule to the Singapore Customs Duties Order.
The three types of Customs duties are as follows:
- Ad valorem rate where duty is calculated as a percentage of the assessed value of the dutiable goods;
- Specific rate where duty is based on a specified amount per unit of weight, volume or quantity of the dutiable goods; and
- Composite / compound rate which is a combination of specific and ad valorem duties. It is based on either: (a) A percentage or a specified amount and shall be the greater of the amounts calculated on such rates; or (b) A percentage and a specified amount and shall be the aggregate of such percentage and amount.