Understand Your Landed Cost Before You Import
If you’re planning to import goods into Singapore, one question matters more than anything else: How much will your shipment actually cost after GST, duties, freight, and insurance?
Most importers underestimate their landed cost because they don’t fully understand how CIF valuation works — and how Singapore applies GST over the final customs value. Even a small mistake in valuation can lead to:
- Unexpected GST bills
- Clearance delays
- Penalties for undervaluation
- Incorrect pricing or loss of profit margins
This blog simplifies the entire process. In the next few minutes, you’ll learn:
- What CIF (Cost, Insurance, Freight) really means
- How Singapore calculates the customs value
- When duties apply
- How to calculate GST step-by-step
- Real-world examples
- Common mistakes importers make
- How to plan an accurate landed cost
Whether you are a business owner, shipper, Amazon seller, or first-time importer, this guide makes the rules easy to follow.
What Is CIF Customs Valuation in Singapore?
Singapore uses CIF — Cost, Insurance, and Freight — as the base to determine the customs value of your shipment.
This CIF value includes:
- Cost of goods (invoice price)
- Freight charges to bring the goods to Singapore
- Insurance cost covering the shipment
- Certain incidental or packing charges
The CIF value is important because:
- GST is charged based on CIF
- Duties are calculated based on CIF
- Incorrect CIF = incorrect tax and compliance issues
Even if the supplier doesn’t provide freight or insurance details (common with FOB shipments), customs still requires CIF, so importers may use standard freight/insurance estimates.
How GST Works in Singapore for Imports
GST Formula for Non-Dutiable Goods
Most goods imported into Singapore are non-dutiable (e.g., clothes, electronics, furniture).
Calculation is simple:
Import GST = CIF × GST rate (currently 9%)
GST Formula for Dutiable Goods
For items like alcohol, tobacco, vehicles, and certain petroleum products:
- Duty is added to CIF, then
- GST is applied over the total.
Formula:
Taxable Value = CIF + Duty
Import GST = Taxable Value × GST rate
GST applies on top of duty — not separately.
Step-by-Step Examples of GST & Duty Calculation
Example 1: Importing Electronics (Non-Dutiable)📦
Goods: Electronics
Country: China
Terms: FOB
Invoice value: USD 10,000
Exchange rate: SGD 1.33
GST rate: 9%
Step 1: Convert to SGD
10,000 × 1.33 = SGD 13,300
Step 2: Add freight + insurance
If not provided, importers use a standard estimated percentage.
Example: 15.5% of the goods’ value.
Freight + Insurance = 13,300 × 15.5% = SGD 2,061.50
Step 3: CIF Value
13,300 + 2,061.50 = SGD 15,361.50
Step 4: Calculate GST
GST = 15,361.50 × 9% = SGD 1,382.53
Final Tax Payable
You pay SGD 1,382.53 GST at import.
Example 2: Importing Wine (Dutiable Goods) 📦
CIF value: SGD 12,000
Duty rate (example): SGD 88 per litre
Quantity: 100 litres
GST rate: 9%
Step 1: Duty
100 × 88 = SGD 8,800
Step 2: Taxable Value
12,000 + 8,800 = SGD 20,800
Step 3: GST
20,800 × 9% = SGD 1,872
Total Duties & GST
Duty = 8,800
GST = 1,872
Total = SGD 10,672
Dutiable items significantly increase landed cost.
Low-Value Goods Rule (CIF Below SGD 400)
Goods imported by air or post may be exempt from import GST if:
- CIF value is SGD 400 or less, And
- Goods are not dutiable
Important reminders:
- “Invoice value below 400” is not enough.
- You must include freight and insurance.
- If CIF = 401, GST applies to the entire amount.
- This relief does not apply to sea freight.
Common Mistakes Importers Make (And How to Avoid Them)
| Mistake | Effects | How to Avoid |
| Declaring invoice value only | Under-valuation → penalties | Always add freight & insurance |
| Wrong exchange rate | Customs delay | Use correct clearance-day rate |
| Ignoring duties | Wrong costing | Check if your HS code is dutiable |
| Assuming GST applies only to goods | Surprise charges | Remember: GST applies to CIF value |
Why Understanding CIF Matters for Your Business
- Accurately forecast landed cost
- Set correct selling prices
- Avoid clearance delays
- Prevent customs penalties
- Maintain stable profit margins
- Improve cash flow planning
Every importer needs CIF clarity — no exceptions.
How Global Lacis Logistics Singapore Helps You
We help importers with:
- CIF calculations
- Pre-shipment GST & duty estimates
- HS code classification
- Documentation & customs permit filing
- Faster Singapore customs clearance
- Cost-optimised freight planning
- Transparent landed-cost planning
If you want to import smoothly and predict every dollar of your landed cost — we’re here to help.
Get Your Free CIF & GST Calculation
Want to know the exact GST and duties for your next shipment?
We’ll calculate your CIF, duties, GST, and full landed cost before you import.
👉 Contact Global Lacis Logistics Singapore today for a free cost breakdown.
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