Free Trade Agreement (FTA)

 

We are fully conversant with various FTAs in Singapore and can advise on how to take advantage of the current and future agreements within the parameters of the legislation.

 

A Free Trade Agreement (FTA) is a legally binding agreement between 2 or more countries to reduce or eliminate barriers to trade, and facilitate the cross border movement of goods and services between the territories or the parties.

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Import duties are largely dependent on individual countries’ trade policies. Countries have the right to increase/reduce import duties when necessary. Such decisions can severely affect long-term exports into these markets. However, FTA preferential rates are legally binding and signatory countries have to abide by the concessions offered. This ensures stability for exporters in the long run.
 

Example of volatile import duties
Exports of Gold Dore Bars into India

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                                                 Jan 2013            Jun 2013          Jan 2015         With Asean - India FTA

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   Import Duty                               06%                   08%                  10%                             0.0%

   Export Value                       $100,000.00      $100,000.00      $100,000.00               $100,000.00

   Duties Payable                      $6,000.00         $8,000.00          $10,000.00                     $0.00

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