How to avoid customs duties during the return for repair or replacement?

Created by Zhen Chain Micro, Modified on Thu, 18 Jul at 11:41 PM by Zhen Chain Micro

NOTE: Customs and/or excise duty (with ad valorem rates) and Goods and Services Tax (GST) are levied on the customs value of imports.

 

1. Customs declaration

When returning a product for repair or replacement, it is generally advisable to indicate on the customs declaration that the product is a "return for repair" or "return for replacement" . This can help to avoid or reduce customs duties and taxes, as the product is not being imported for commercial purposes.

 

2. Information about the product

It is also important to provide detailed information about the product, including its value, origin, and identification codes. 

 

How much should I declare on the item?

Please ensure that you declare the value within $200 and describe the product as "returning for replacement or repair". Failure to do so may result in additional customs clearance fees being charged to the client. 

(Please note that even if you declare the value of the item within $200, if the customs authorities determine that the actual value exceeds $400 (SGD), which equals to $300 (USD)  they may still levy consumption tax. Unfortunately, this is beyond our control, as the customs authorities have their own valuation methods and criteria. Therefore, we would like to suggest you to set the value as low as possible)

 

How does the customs determine the value of the item?

 

What should I present the items to the customs?

You can present it as a COMPUTER SERVER, with HS CODE 8517699000. Please do not describe it as goods, otherwise, the additional customs clearance fees will be charged to the client.

 

Overall, the key to avoiding customs duties during a return for repair or replacement is to provide clear and accurate information about the product and its purpose, and to work closely with the appropriate authorities and carrier to ensure that all requirements are met.

 

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