Short answer: A Singapore customs offence by an importer is usually an incorrect or missing declaration, under-declared value or evaded duty or import GST. Singapore Customs may issue an advisory, compound the offence for up to S$5,000 per offence, or prosecute. Fraudulent evasion carries fines of up to 20 times the tax evaded, plus possible imprisonment.
A Singapore customs offence often starts with something small: an invoice that left out freight, a free sample declared at nominal value, or a TradeNet permit keyed in by a forwarder from a pro-forma invoice. Because customs law also applies to import GST, the same rules catch a trading company that imports ordinary, non-dutiable goods. This guide explains, from the importer’s side, the common offences, the penalties, how an investigation runs, composition and prosecution, seizure of goods, and how to correct errors before Customs finds them.
Key facts at a glance
- Incorrect declarations, failure to declare and failure to produce documents (sections 128(1), 128B(1) and 128C, Customs Act 1960): fine up to S$10,000 or the duty or GST payable, whichever is greater, and/or up to 12 months’ imprisonment.
- Fraudulent evasion (section 128D): fine of 10 to 20 times the duty or tax evaded, subject to S$5,000 floor and ceiling rules, plus up to 12 months’ imprisonment, or 2 years for repeat offenders.
- Composition: up to S$5,000 per compoundable offence (section 126).
- Import GST is 9% of the CIF value plus any duty, and section 26 of the GST Act 1993 applies customs law to it.
- Trade documents must be kept for at least 5 years (section 90).
- Seized goods with no prosecution are deemed forfeited after one month unless claimed in writing (section 124).
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
What counts as a Singapore customs offence for an importer?
Any breach of the Customs Act 1960, the Regulation of Imports and Exports Act or their subsidiary legislation can be an offence, and for ordinary importers most are declaration errors. Singapore Customs lists incorrect declarations of value, failure to declare goods and failure to produce trade documents among the common offences.
Examples from Singapore Customs’ own guidance include:
- Leaving insurance charges out of the value on a GST payment permit, or not declaring free gifts from an overseas supplier.
- Declaring samples or free-of-charge items at a nominal value.
- Undeclared goods found inside an imported container.
- Applying for a permit using a pro-forma invoice.
- Declaring the port of loading as the country of origin when the goods come from elsewhere.
- Lending your UEN (Unique Entity Number) to import goods that are not yours.
Most imports attract only GST. Duty applies to intoxicating liquor, tobacco products, motor vehicles and petroleum products; see our guide to excise duty and customs duty for importers.
What do the Customs Act and GST Act say?
The offences and penalties sit in Part 15 of the Customs Act 1960. Section 26 of the Goods and Services Tax Act 1993 applies customs law to GST charged on imports, and section 77 applies the Customs Act’s trial and penalty provisions to GST offences, so under-declaring non-dutiable goods is caught too.
| Provision (Customs Act 1960) | What it covers | Maximum penalty on conviction |
|---|---|---|
| Section 128(1) | An untrue, incorrect or incomplete declaration or document, including an incorrect value declaration | Fine up to S$10,000 or the duty or tax payable, whichever is greater, and/or 12 months’ imprisonment (s 128L(1)) |
| Section 128B(1) | Failing to declare goods, or their value, when required | Same as above |
| Section 128C | Failing or refusing to produce documents demanded under section 85 | Same as above |
| Sections 128D and 128F | Being concerned in fraudulent evasion of duty, or in importing uncustomed or prohibited goods | Fine of at least 10 times the amount evaded or S$5,000, whichever is lesser, and up to 20 times or S$5,000, whichever is greater; plus up to 12 months’ imprisonment, or 2 years for a repeat offender (s 128L(2), (2A), (3A)) |
| Section 129 | Refusing to answer an officer’s questions, or giving false information | Fine up to S$5,000 and/or 12 months’ imprisonment |
| Section 90(3) | Failing to keep trade documents | Fine up to S$10,000 and/or 3 years’ imprisonment |
Three features matter most to a company. First, for sections 128, 128A and 128B it is no defence that the error was inadvertent or made without fraudulent intent. Second, under section 128L(6), in an evasion or uncustomed-goods prosecution, the goods are presumed to be uncustomed to the accused’s knowledge unless the accused proves otherwise. Third, under section 141, when a company offends, each director, manager, secretary or similar officer is deemed guilty unless he or she proves the offence happened without his or her consent or connivance and that due diligence was exercised to prevent it. The company is also liable for its agents and employees, including the declaring agent.
Separately, section 20 lets the Director-General demand any duty or GST short levied, normally in writing within 5 years of payment. That limit does not apply where the short levy resulted from fraud or evasion.
How does a Singapore Customs investigation or audit run?
Most cases start with a post-clearance audit, a query on a permit, or a check at the point of import. Any trader or declaring agent can be selected under Singapore Customs’ risk management framework, and audits may be unannounced.
In a post-clearance audit, officers interview staff about the business and compare TradeNet permits against commercial invoices, packing lists, bills of lading, certificates of origin and payment records. Under section 85 the importer must produce these on demand, and under section 110 officers may seize goods, documents and mobile phones believed to bear on an offence. Section 129(3) does not oblige a person to answer a question that would tend to expose him or her to a criminal charge, penalty or forfeiture.
What happens step by step after Customs finds an error?
Singapore Customs reviews each case individually, and the outcome depends on severity, frequency and circumstances.
- Customs contacts the company or its declaring agent with a query, audit notice or document request.
- The company produces invoices, permits and accounting records.
- Officers interview the persons involved. If goods or records are seized, written notice is given under section 110(3) unless the seizure happens in the owner’s presence.
- Customs calculates any duty or GST short paid and demands the shortfall.
- Customs decides on an advisory, an offer to compound, or prosecution for fraudulent or serious cases.
- If the composition sum is paid, the matter ends. Otherwise charges are filed in the State Courts.
If IRAS is also reviewing the company’s GST returns, our guide to what triggers an IRAS GST audit explains how the reviews can overlap.
What is composition, and when will Customs compound an offence?
Composition (compounding) means paying a sum to Singapore Customs instead of being prosecuted. Under section 126, a senior officer of customs may compound any offence prescribed as compoundable for a sum not exceeding S$5,000.
Once paid, no further proceedings are taken and seized property is released, except goods whose import is absolutely prohibited or goods made in Singapore without a licence, which are forfeited. Composition is at Customs’ discretion, each erroneous permit can be a separate offence, and the duty or GST shortfall remains payable on top.
What happens if your company is prosecuted?
Customs prosecutions are criminal cases in the State Courts. Under section 114, a District Court or Magistrate’s Court can try any Customs Act offence and impose the full penalty, and under section 113 an authorised customs officer may prosecute with the Public Prosecutor’s authorisation.
Because these are criminal proceedings, the civil Rules of Court 2021 do not govern them. The company, and any director charged under section 141, is represented in court by a Singapore Advocate and Solicitor. Raffles Corporate Services does not act in court or give legal advice; if charges are likely, speak to a lawyer early. Under section 123, the trial court also decides whether seized goods are forfeited or released, and may order forfeiture once it is proved an offence was committed with those goods, even without a conviction.
There are no published scale fees for a customs case. The table sets out the fixed statutory figures and the cost drivers; timings are indicative because Customs does not publish turnaround times for audits or investigations.
| Stage | Typical timing | Cost drivers |
|---|---|---|
| Voluntary disclosure | Customs processes within 3 working days | Time to reconcile permits; duty or GST shortfall |
| Post-clearance audit | Varies with scope and quality of records | Number of permits reviewed; any shortfall found |
| Composition | After Customs completes its review | Up to S$5,000 per offence, plus the shortfall |
| Prosecution | Depends on court scheduling and whether contested | Legal fees; statutory fines; possible forfeiture |
Can Singapore Customs seize and forfeit your goods?
Yes. Goods connected with an offence can be seized under section 110, and all goods liable to seizure are liable to forfeiture under section 122.
- A senior officer of customs may release seized goods on conditions and against a cash deposit, bank guarantee or both (section 110(8) and (9)).
- If there is no prosecution, seized goods are deemed forfeited one month after seizure unless the owner gives written notice of a claim (section 124). The Director-General may then release them or refer the claim to a District Judge or Magistrate.
- Under section 127, no costs or damages are recoverable for a seizure, beyond return of the goods or their value, unless it was made without reasonable or probable cause.
How do you make a voluntary disclosure to Singapore Customs?
Singapore Customs’ Voluntary Disclosure Programme (VDP) covers errors and omissions in declarations. The disclosure must be complete and made before Customs notifies the company of any audit, query or investigation.
First check whether the permit can simply be corrected. An unused permit can usually be amended or cancelled through TradeNet, and a wrong value can be fixed by taking up a short-payment permit for the shortfall. Once a used permit cannot be amended, the VDP is the route.
- Reconcile TradeNet permits against invoices, freight and insurance bills to find every affected permit.
- Log in to the VDP form with Singpass (Corporate).
- Submit the permit details and the Excel sheet of affected permits and errors. Incomplete submissions are rejected.
- Wait for Customs’ assessment, usually within 3 working days.
- Pay any shortfall and fix the process that caused the error.
Some lapses are excluded, such as failed GIRO-related payment conditions and permits Customs has already queried; see the Singapore Customs VDP page. This is separate from the IRAS Voluntary Disclosure Programme for GST return errors.
For income tax and GST matters administered by IRAS, where past under-declaration may have been deliberate, a different disclosure route applies. See our guide to voluntary disclosure of tax evasion.
Which records must an importer keep, and who prepares what?
Section 90 requires importers and their agents to keep trade documents for at least 5 years from the date the goods are released. Section 26 of the GST Act extends this to goods subject to import GST, and Customs advises all traders to keep supporting documents for 5 years.
| Document | Why it matters |
|---|---|
| Commercial invoices (not pro-forma) | Primary evidence of transaction value |
| TradeNet permits | The declaration Customs tests |
| Bills of lading, air waybills, packing lists | Quantity, consignee and shipment details |
| Freight and insurance invoices | Needed to build the CIF value |
| Certificates of origin and analysis | Origin and classification |
| Books of account, payment records, contracts | What was actually paid, and terms of trade |
A corporate service provider such as Raffles Corporate Services can keep the books and GST records, reconcile import permits against the ledger and import GST claims, prepare schedules for a voluntary disclosure, and keep board minutes recording the outcome. If import GST is deferred, see our Import GST Deferment Scheme guide. Representations to Customs on an alleged offence, advice on accepting composition, and all court work are for the company’s solicitor. There is usually no ACRA lodgement linked to a customs case.
What are the common mistakes importers make?
- Leaving freight, insurance or free items out of the declared value.
- Letting the forwarder declare from a pro-forma invoice.
- Assuming no duty means no risk, when import GST is enforced under the same law.
- Waiting for an audit before reconciling permits, which closes off the VDP.
- Ignoring a seizure notice and losing the goods after one month.
- Directors assuming section 141 does not reach them.
New importers can start correctly with our guide to starting an import and export trading company and our free tools. The Act is on Singapore Statutes Online, and Customs’ list of import offences is on its import procedures page.
Customs is one of several Singapore agencies with a published route for coming forward first. See our guide on which regulators give a last chance before prosecution.
Frequently asked questions
Is an honest mistake on a customs permit still an offence?
Yes. Under section 128(2), it is no defence to an incorrect declaration that it was inadvertent or made without fraudulent intent. Intent mainly affects whether Customs issues an advisory, compounds or prosecutes.
Does the Customs Act apply if my goods only attract GST?
Yes. Sections 26 and 77 of the GST Act apply customs law and its offence provisions to import GST, so under-declaring non-dutiable goods can be an offence.
How much is a customs composition fine?
Section 126 caps it at S$5,000 per compounded offence, and any duty or GST short paid is payable in addition.
Can directors be personally charged?
Yes. Section 141 deems directors and similar officers guilty of the company’s offence unless they prove lack of consent or connivance and due diligence.
Can I make a voluntary disclosure after Customs contacts me?
Generally no. It must be complete and submitted before Customs notifies you of an audit, query or investigation.
Need help with this?
Raffles Corporate Services can handle the ACRA filings, compliance documentation and records for you, and where court proceedings or legal advice are needed, we work with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice.
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Last reviewed: 29 October 2026. The Editorial Team, Raffles Corporate Services.