Using Singapore’s strategic position to consolidate and redistribute goods across ASEAN — without the GST burden

The Zero-GST Warehouse Scheme allows goods to be imported and stored at specific registered warehouses without paying Goods & Services Tax (GST). Companies with international manufacturing facilities can take advantage of Singapore’s attractive location as a regional logistics hub.

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Challenges

Consolidating multi-country production and re-exporting across ASEAN without incurring extra costs

Our client needed to consolidate goods manufactured across multiple ASEAN countries and re-export them to other markets in the region for sale. Doing so through conventional import channels would have triggered unnecessary GST payments, adding cost at every stage and eroding margins on goods that were never intended for local consumption.

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Solution

Zero-GST warehousing + preferential tariff advantages

By leveraging Singapore’s strategic location as a regional hub, Yamato proposed establishing operations under the Zero-GST Warehouse Scheme. Goods could be consolidated, stored, and re-exported without incurring GST at the point of import. To further reduce costs at the destination end, Yamato facilitated the issuance of back-to-back preferential Certificates of Origin thus enabling the client to qualify for preferential tariff rates in their destination markets across ASEAN.

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Benefits

Improved cash flow and lower landed costs across the region

• GST is not payable at the time of import, directly improving the client’s cash flow and reducing the capital tied up in inventory
• Preferential tariffs at destination markets lower the overall landed cost of goods, strengthening the client’s competitive position across ASEAN

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