Customs Value Singapore: What Goes Into CIF (2026)
The customs value Singapore Customs uses is built on CIF terms: the price paid plus the charges tied to selling and delivering the goods to Singapore, such as freight, insurance, packing, selling commissions and royalties, whether or not your invoice shows them. After a value query, first check which charges never reached your permit.
When a value query lands, finance wants to know whether more GST is owed. The supplier insists the invoice was correct. Someone asks how the number on the permit was worked out, and nobody can quite say.
The answers are on Singapore Customs' own pages, spread across the valuation method page, the exchange-rate and flat-rate pages, the GST page, and a string of AskGov replies to traders. This guide puts them in one place for the business owner or finance lead who has to explain and fix a declared value.
Rules checked against Singapore Customs, AskGov and IRAS pages on 30 September 2026.
In this article |
KEY TAKEAWAYS
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In this article |
Customs value Singapore: key takeaways
Customs value starts from the transaction value, built on CIF terms.
Charges tied to the sale and delivery are added whether or not the invoice shows them. Customs' examples include selling commissions, assists, packing, royalties, freight and insurance.
Cash, quantity and trade discounts can come off if the invoice or a supplier letter states them. A cash discount only counts if it was earned before import.
Free-of-charge goods cannot be declared at zero.
A pro-forma invoice cannot be used to declare and pay GST.
Short-paid GST is settled with a short-payment permit; overpaid GST goes to a refund or an input tax claim.
What is the customs value on a Singapore import permit?
It is the value Singapore Customs uses to work out what you pay on the goods. Customs uses it to calculate customs duty, excise duty on goods with ad valorem rates, and GST (Singapore Customs).
The primary way to set it is the transaction value method. Customs builds that method on the CIF value (cost, insurance and freight), as the Incoterms define it (Singapore Customs).
Singapore Customs lists four categories of dutiable goods: intoxicating liquors, tobacco products, motor vehicles, and petroleum products and biodiesel blends (Singapore Customs). For non-dutiable goods, Customs works out GST as the prevailing rate times the customs value, or the last selling price where that applies (Singapore Customs). Our guide to what customs clearance costs shows how the GST line is worked out from the value. This guide covers the step before that: getting the value right.
Why the invoice total is only the starting point
Customs wants the value of the whole sale delivered to Singapore, and an invoice may show only part of it.
AskGov puts it plainly: "all other charges, costs and expenses incidental to the sale and delivery of the goods into Singapore, whether or not shown on the invoice, must be added to the transaction value or the price paid or payable for the imports" (AskGov, Singapore Customs).
A second reply says who does that work. Working out the CIF figure falls to the importer or the declaring agent it appoints, and the terms printed on the invoice, bill of lading or air waybill do not change that (AskGov, Singapore Customs).
So a genuine invoice, declared as it stands, can still carry the wrong value. The invoice may be quoted on terms that stop at the supplier's door. It may also leave out charges you paid separately. That gap is the first place to look.
Which charges does Customs add to the price?
"All charges incidental to the sale and delivery of the goods to Singapore," in Customs' words. Customs gives these as examples, so the list is not the limit:
selling commissions
assists, meaning materials provided by the importer
packing costs
proceeds of resale accruing to the seller
royalties and licence fees
freight charges
insurance charges
That list comes from the Customs method page (Singapore Customs). The items that can sit off the supplier's invoice are the ones a buyer pays elsewhere: freight booked by you, insurance you bought, a selling commission, a royalty, or materials you supplied for production.
Customs' own worked example shows how far the invoice price can sit from the customs value. A company buys two cartons of vitamins on Ex Works (EXW) terms, where the seller makes the goods available at its premises and the buyer arranges the rest:
Cost component | Amount |
Vitamins | S$1,000 |
Selling commission | S$100 |
Inland haulage to the export port | S$150 |
Port handling and paperwork at export | S$200 |
Overseas freight | S$300 |
Insurance | S$50 |
Customs value | S$1,800 |
Source: Singapore Customs, Example 1. The invoice said S$1,000. The customs value is S$1,800, which is 80% more. If the permit had carried the invoice figure, the GST would have been worked out on a value S$800 lower than Customs' figure.
When can Customs set the transaction value aside?
When the sale does not meet Customs' conditions for the transaction value method. Customs says it uses the method only if all of these hold (Singapore Customs):
There is evidence of a sale, such as a commercial invoice, sales contract or purchase order.
The buyer can use the goods without restriction.
No condition attached to the sale can distort the value. Customs gives two examples: a price that holds only if the buyer also buys other goods, and a price for semi-finished goods that depends on the buyer sending part of the finished output back.
The relationship between importer and supplier does not influence the transaction value.
The fourth condition matters to any group that buys from a related company overseas. Customs describes transfer pricing as "how prices are determined for transactions between related parties", and says "these prices must follow the arm's length principle". For non-dutiable goods and GST treatment, it points to the IRAS e-Tax Guide on transfer pricing adjustments (Singapore Customs).
If the transaction value cannot be used, Customs lists these alternatives:
Identical or similar goods value: what the same or similar goods were bought for when exported to Singapore.
Deductive value: starts from what the goods sell for in Singapore and adjusts for costs that arise after import.
Computed value: production cost, general expenses and profit in the country of origin.
Residual valuation: a flexible fallback that borrows from the methods above.
Which supplier discounts can you deduct?
Cash, quantity and trade discounts, if the paperwork says what they are. Customs can accept those three and exclude them from the GST computation. Name the discount type on the invoice, or get a supplier letter that explains it (AskGov, Singapore Customs).
Customs also lists discounts it does not allow:
a related-party discount, where the relationship between buyer and seller has shaped the price
the buyer performs work for the seller as part of paying for the goods
the buyer provides goods or services to a third party for the seller as a condition of the sale
the price has received credits for earlier transactions
Timing is the other test. In an AskGov example, a machine costs S$20,000, with a 5% cash discount if paid within 10 days (AskGov). Payment has not been made at import, so the customs value is S$20,000.
The discounted price can be declared only once the importer has paid and qualified for the discount before importation. Retrospective discounts after importation are not allowed (AskGov, Singapore Customs).
For a quantity discount, such as 10% off a larger order, AskGov asks for the supplier's letter explaining the discount with your supporting documents, or the discount type stated clearly on the invoice (AskGov, Singapore Customs).
What value do free-of-charge goods and samples carry?
A real commercial value, never zero. AskGov states that zero value is not acceptable for customs declarations (AskGov, Singapore Customs).
For gifts, free-of-charge or replacement items with no value on the invoice, you obtain the commercial value from the supplier. Base it on what identical or similar goods from the same origin country sold for when exported at around the same time. The invoice may say "value for Customs purpose only". You must be able to explain how that value was determined and keep trade documents to back it up (AskGov, Singapore Customs).
Free samples packed into a paid shipment follow the same rule. GST is calculated on their CIF value plus duties. If the invoice shows no value, the importer gets the commercial value from the supplier. AskGov also notes that "GST relief may be granted on certain trade samples" (AskGov, Singapore Customs).
One more document rule covers pro-forma invoices. AskGov says "the pro-forma invoice cannot be used for the declaration and payment of GST" (AskGov). It is not acceptable for GST payment because the supplier has not confirmed the value (AskGov). The value should come from the trade documents, such as the bill of lading, commercial invoice and packing list (AskGov, Singapore Customs).
Need help with a permit or customs clearance? Talk to a Declaration Nexus declaring agent on WhatsApp for a quick answer. or call +65 6589 8122 · email enquiry@declarationnexus.com |
Freight or insurance missing from the invoice
Add the actual charges if you have them. Customs' flat rates are for when you don't.
Take an invoice on Free On Board (FOB) terms where the actual freight and insurance are not known or not available. Customs lets you apply its flat rates.
These are set as a percentage of the FOB value, by place of export. They run from 5% for Peninsular Malaysia to 24.5% for Africa, Canada and the USA (Singapore Customs). The full table, with a worked example, is in our customs clearance cost guide.
On Cost and Freight (CFR) terms, with no actual insurance figure to hand, Customs allows a flat 1% for insurance. If no insurance was bought at all, you may set insurance to zero (Singapore Customs).
Note the wording. Both flat rates are a fallback for a missing actual figure. If the freight invoice is sitting in your accounts team's inbox, use the actual charge.
Which exchange rate converts a foreign-currency invoice?
The MAS weekly average rate, unless MAS does not list your currency. Customs' method page says to convert foreign-currency costs to Singapore dollars at the prevailing weekly average MAS exchange rates. The rate is the one in force when customs duty or excise duty is paid (Singapore Customs).
Customs' exchange-rate page adds detail. You may use the MAS weekly average rates from the preceding week when you submit declarations. For standard imports, the rate is based on the date a Customs officer approves the import. If MAS does not list your currency, use the prevailing selling rate from a reputable source in Singapore, such as a local bank (Singapore Customs).
The currency you actually pay in also matters. In Customs' example, a supplier quotes CIF US$10,000 but asks for payment in Singapore dollars, S$13,700. If the buyer pays S$13,700, that is the customs value (Singapore Customs).
When GST is worked out on the last selling price
If the goods were resold before they arrived, and the final buyer is the one filing the payment permit, Customs bases GST on that final sale price. That price plus all duties then takes the place of the customs value as the GST base (Singapore Customs).
In Customs' example, Company A buys vitamins for S$900 on FOB terms and pays S$100 for overseas freight, handling and insurance. Before the goods arrive, it sells them to Company B for S$1,500. Company B bought last before the goods landed, so GST is the prevailing rate on S$1,500 (Singapore Customs).
For a trading company that buys goods already on the water, this is the question to ask before filing: whose sale is the last one?
How the value decides the GST on the permit
GST follows the value line. IRAS says import GST is charged on the CIF value, plus all duties payable, plus commission and other incidental charges (IRAS). The current rate is 9% (IRAS).
The value also travels into your GST return. In Box 5 of the GST return, IRAS wants the import value that appears on the permit. If your supplier's invoice shows a different value, you must reconcile the two (IRAS). For a finance team, a value built properly on the permit also reconciles cleanly at GST return time.
Where each value question sits
Each row below restates a Customs, AskGov or IRAS source already cited above. Your own facts decide which row applies.
Your situation | What the source says to do | Source |
Invoice is FOB or EXW, and you paid freight and insurance | Add the actual freight, insurance and other delivery charges | AskGov, Customs method page |
Invoice is FOB, actual freight and insurance not available | Apply Customs' flat rate for the place of export | Customs flat rates |
Invoice is CFR, actual insurance not available | Use 1% for insurance; zero if none was bought | Customs flat rate for insurance |
You paid a selling commission, royalty or licence fee, or supplied materials | Add it to the price | Customs method page |
Cash discount not yet earned at import | Declare the undiscounted price | AskGov |
Free-of-charge items, gifts or replacements | Declare a commercial value from the supplier, never zero | AskGov |
Only a pro-forma invoice so far | Declare from the commercial invoice; a pro-forma cannot be used | AskGov |
Goods sold again before arrival | GST on the last selling price plus duties, where the last buyer files the payment permit | Customs GST page |
Supplier is a related company | The relationship must not influence the price | Customs method and transfer pricing pages |
Customs queried the value on your permit? WhatsApp the declaration desk on +65 8786 3987 with the permit number, the supplier's invoice and what Customs asked. |
Customs has queried your value. What now?
Rebuild the value from the documents, then correct it through the route that fits. Take it in this order.
Pull the documents behind the permit. These are the commercial invoice, sales contract or purchase order, the freight and insurance bills, and any selling commission, royalty or discount paperwork. Customs expects the permit value to rest on the trade documents (AskGov).
Rebuild the CIF value line by line, using the charges and rules above. Convert currencies the way Customs describes.
Compare it with the permit. If they match, the documents are your explanation. For free-of-charge goods, be ready to show how you arrived at the commercial value (AskGov).
If the value was too low, pay the shortfall with a short-payment permit. AskGov lists the cases for one. They include under-declared or omitted cost, insurance, freight and other incidental charges; a lower-value invoice or the wrong currency; and undeclared samples, gifts or free-of-charge items. Choose the permit by what was short-paid: In-Payment (GST including duty exemption) for GST only, In-Payment (Duty) for duty only, or In-Payment (Duty and GST) for both (AskGov).
Convert the shortfall at the original rate. For a foreign-currency invoice, convert at the Customs rate that applied on the day the original In-Payment permit was approved (AskGov). IRAS says "the short payment permit acts as documentary evidence for your input tax claim" (IRAS).
If the value was too high, recover the difference. Customs lists a wrong customs value among the reasons for a refund. You or your declaring agent file the refund request through the Refund Module in TradeNet, within 5 years of the duty or GST payment (Singapore Customs).
If you are GST-registered, check how the GST was paid. If GIRO took it under permit conditions GF and TX, or you paid at the bank, Customs points you to IRAS: claim the overpaid GST as input tax in your return instead (Singapore Customs). Our guide to amending, cancelling and correcting a permit sets out each route in more detail.
Check whether a voluntary disclosure is still open. Customs' VDP page requires a complete disclosure, sent in "before Singapore Customs notifies you of any audit, query, or investigation", and that it is not eligible "where Singapore Customs has informed you of an investigation or query relating to the affected permit(s)" (Singapore Customs). The page does not say how this applies to your other permits, so confirm with Customs before relying on the VDP for them.
Customs has also asked traders to look back. In Circular 11/2026, dated 10 September 2026, it said targeted profiling and post-clearance audits had found traders consistently declaring significantly lower values for seafood, fruits and vegetables. The audits found "approximately $1.4 million in GST short-paid over a three-year period". It encouraged traders and declaring agents to review past imports, submit a voluntary disclosure where declarations were incorrect, and keep proper records (Singapore Customs, Circular 11/2026).
A value checklist before your next permit
Five questions to answer before a permit is filed:
On what terms is the invoice quoted (the Incoterm), and which delivery charges sit outside them?
Did we pay anything else for these goods: a selling commission, a royalty or licence fee, packing, or materials we sent the supplier?
Is any discount on the invoice a cash, quantity or trade discount, stated as such, and was it earned before import?
Are there free-of-charge items in the shipment, and do we have a commercial value for them?
Which currency did we pay in, and which rate converts it?
For the wider document check, covering importer, HS code and licences as well as value, see our five document checks before filing. For how value fits into the rest of the permit, read what goes into a Singapore customs declaration, and for the classification side, getting the HS code chain right.
You may be thinking: "Our supplier's invoice is genuine, so our value must be right." A genuine invoice is the evidence of the sale. It is not the whole value. Customs adds charges whether or not the invoice shows them, and expects the importer or declaring agent to work out the CIF value whatever terms the documents are on.
Talk to a declaring agent about a value query
Declaration Nexus is a Singapore customs broker and declaring agent. We prepare and file the TradeNet permit.
Send us the permit, the supplier's invoice and the freight and insurance bills. We'll review your documents and tell you what we need before we file. WhatsApp us, use the contact form, or see our import and export permit declarations service.
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Frequently asked questions
What is the difference between the invoice value and the CIF value?
The invoice value is what the supplier billed. The customs value starts from that price and adds the charges tied to selling and delivering the goods to Singapore, such as freight, insurance, packing, selling commissions and royalties, whether or not the invoice shows them. In Customs' EXW example, a S$1,000 invoice becomes a S$1,800 customs value.
Do I have to include freight if my supplier's invoice is FOB?
Yes. Singapore Customs builds the value on CIF terms, so freight and insurance to Singapore are added to an FOB price. Use the actual charges where you have them. Customs' flat rates, set as a percentage of the FOB value by place of export, are the fallback when you do not have the actual figures.
Can I declare free samples at zero value?
No. AskGov states that zero value is not acceptable for customs declarations. Ask the supplier for a commercial value, based on what identical or similar goods from the same origin fetched when exported around the same time. Keep the papers that show how you got there.
Does a supplier discount reduce the customs value?
A cash, quantity or trade discount can, if the invoice states the type of discount or the supplier gives a letter explaining it. A cash discount counts only if it was earned before import. Discounts driven by a related-party relationship, or by credits from earlier transactions, are not accepted.
Which customs exchange rate do I use for a US dollar invoice?
Customs lets you use the MAS weekly average rates from the preceding week when you declare. For standard imports, the rate follows the date a Customs officer approves the import. For a currency MAS does not list, use the prevailing selling rate from a reputable Singapore source, such as a local bank.
We under-declared the value. How do we pay the difference?
With a short-payment permit for the shortfall. Choose In-Payment (GST including duty exemption) if only GST was short-paid, In-Payment (Duty) if only duty was, or In-Payment (Duty and GST) if both were. If you are GST-registered, IRAS says that permit "acts as documentary evidence for your input tax claim".
Who has to work out the customs value Singapore Customs expects?
The importer or the appointed declaring agent. AskGov puts the job of working out the CIF figure on them, whatever terms the invoice, bill of lading or air waybill use (AskGov). So the job sits on your side of the sale, with you or your declaring agent, not with the supplier who wrote the invoice.
PUBLISHED BY Declaration Nexus Team Declaring agent and customs broker at Paya Lebar Square, Singapore |
WRITTEN BY · SEO & GEO BY  SingRank Team Written by the SingRank Team together with the Declaration Nexus team. SEO & GEO by SingRank.com · singrank.agency |
Last updated 16 October 2026. Have a customs question? WhatsApp the Declaration Nexus team at +65 8786 3987. |
