Wrap Up Speech by MOS Gan Siow Huang on the Regulation of Imports and Exports Amendment Bill

1            Mr Speaker, I thank the honourable Members - Mr Victor Lye, Mr Gerald Giam, A/P Jamus Lim and Mr Ng Shi Xuan, who have spoken in support of the Bill.

Addressing members’ questions

2            I want to clarify upfront that this Bill essentially seeks to preserve Singapore's reputation as a credible trade hub, by ensuring that Trade Information Certificates issued in connection with the Act are issued properly, and the effectiveness of our enforcement against offences.

3            Currently, manufacturers and exporters are expected to abide by respective record-keeping requirements stated in the preferential tariff arrangement or agreement. This Bill does not amend or add to these requirements.

4            The introduction of the offence provision seeks to reinforce this requirement and ensure proper retention of records as specified in the preferential tariff arrangement or agreement. Such records would include copies of documents that were needed for the issuance of those preferential certificates of origin, such as commercial invoices and packing lists, which manufacturers and exporters are familiar with. Also, just to reassure Members here, the penalties prescribed are aligned with similar offences regulated under the Act.

5            Let me cover a few other points that have been raised.

Impact of Trade Information Certificates Framework to Businesses

6            First, on the impact of the Trade Information Certificates framework on businesses.

7            Members have called for facilitative approaches and clear communication with businesses. I agree. I thank Members for the practical suggestions made and we will consider them and take in feedback and further suggestions, especially from businesses, trade association chambers, and exporters themselves.

8            There are avenues for businesses that require assistance to understand their responsibilities and comply with the regulations:
a.           Singapore Customs regularly updates businesses on new information or changes in procedures through its website and circulars. This includes new entities authorised to issue specific Trade Information Certificates; and changes to the types of certificates allowed for issuance.
b.           Businesses can also seek information and guidance from the Centre for the Future of Trade and Investment, or CFOTI set up by the EnterpriseSG and Singapore Business Federation.
               i.        Through CFOTI, businesses may receive tailored support and practical business solutions.
               ii.        CFOTI also regularly organises workshops, forums and seminars to assist businesses in enhancing their trade competencies and capabilities. Our SME centres similarly advise SMEs on grants and support available for them to be able to comply and be effective in the trade system.

Role of Authorised Certificate Issuers and Robustness of Trade Information Certificates Framework

9            Second, on matters related to non-governmental authorised certificate issuers.
a.           Currently, four Chambers of Commerce and the Singapore Manufacturing Federation are authorised to issue Certificates of Origin.
b.           These five organisations are required to carry out their duties in accordance with the Regulation of Imports and Exports Act.

10         Singapore Customs regularly monitors these organisations to ensure that their verification of Singapore-origin goods is sufficiently robust, and this is helpful for businesses.

11         With the amendment, other non-governmental and private entities, can now apply to Singapore Customs to be an authorised certificate issuer. This gives businesses more options on where they can obtain Trade Information Certificates.

12         At the same time, we need to ensure that proper safeguards are in place, to be confident that Trade Information Certificates are credible.
a.           To this end, Singapore Customs will authorise only an applicant that is deemed “fit and proper”, to issue certificates.
b.           The Minister may make regulations imposing requirements that applicants must satisfy in order to be authorised certificate issuers.
c.           The amendment also provides for a transparent process under which errant authorised certificate issuers may have their authorisations suspended or revoked.

Deterring and Detecting Offences in Relation to Regulated Trade Information Certificates

13         Another issue highlighted by Members is on deterring and detecting offences related to Trade Information Certificates.

14         Singapore Customs will continue to take a firm stance against false declarations on goods and will not hesitate to take actions against violations of our domestic customs or trade regulations.

15         For effective enforcement of our laws, Members would agree that Singapore Customs must take a risk-based, multi-pronged approach in detecting, deterring and penalising offenders.

16         To detect non-compliance, Customs uses data analytics, information received from domestic and foreign counterparts, and non-intrusive cargo screening technology to identify suspicious declarations or shipments.

17         To deter potential offenders, Customs issues circulars to remind businesses on the criteria for determining country of origin of goods and warn companies of the seriousness of committing fraud. Now, Customs will also be very careful about how they share information and issue advisories, especially when the mistakes made are administrative in nature and are genuine, honest mistakes by people who are not familiar with the rules.

18         Against deliberate offenders, Customs will not hesitate to prosecute them and publicise serious fraudulent cases to reiterate the government’s zero-tolerance for deliberate violations of Singapore laws.

Ensuring Proportionality in the Strengthening of Singapore Customs’ Enforcement Powers

19         Finally, let me address the points raised on ensuring proportionality in the strengthening of Singapore Customs’ enforcement powers. Members had questions and suggestions on safeguards and thresholds for granting search warrants for books and digital records.

20         Providing powers for enforcement agencies to inspect computers and associated devices is necessary in today’s digital age. The use of such devices in import and export transactions is now standard practice, with related documents often stored electronically and serving as key evidence. As digitally stored records can be moved or altered quite quickly, it is crucial to grant investigators the powers to inspect these devices to ensure that investigations are effective and efficient.

21         I want to assure Members that every effort will be made to strike a balance between effective investigations and minimising disruption to legitimate business activities. And these are the majority. Most are legitimate. Customs will be very discreet and careful when applying for powers to search or look through their documents.

22         Singapore Customs’ powers will be exercised solely to facilitate investigations into potential offences committed by businesses with the intent to defraud our trading system. I was looking through the breaches that Customs had detected in the past few years. The majority of breaches were administrative in nature. Some may be mistakes in the date of transaction or the number of the shipping container. For such mistakes, usually, Customs takes a very light touch. It is just an advisory and a caution issued to the exporters and businesses.

23         I want to also reassure Members that the expanded search powers will not be exercised frivolously. Where a search warrant is required, its application must be made on reasonable proof that the premises contain evidence relating to the offence.

Conclusion

24         To conclude, I would like to reiterate that this Amendment Bill will:
a.           Strengthen Singapore’s regulatory framework for the issuance of Trade Information Certificates by authorised certificate issuers; and
b.           Strengthen Singapore Customs’ investigative powers to uphold the integrity of our trade regime. 

25         Mr Speaker, trade is three times our GDP and is the lifeblood of Singapore’s economy. With the support of the House today, this Bill will strengthen Singapore’s position as a trusted and efficient trading hub, and maintain the competitive edge of Singapore’s economy.

26         Sir, I beg to move.