PART 2 | OPERATIONS PERMITTED WITHIN FREE TRADE ZONE |
| Dealing with or disposal of goods in free trade zone |
5.—(1) Goods of any description, except such as are specifically and absolutely prohibited by any written law, may be brought into a free trade zone.(2) Goods in a free trade zone may —| (a) | be removed from the free trade zone, destroyed, or sent into customs territory or into another free trade zone in the original package or otherwise; and | | (b) | unless otherwise directed by the licensed FTZ operator of the free trade zone, be stored, sold, exhibited, broken up, repacked, assembled, distributed, sorted, graded, cleaned, mixed, or otherwise manipulated, or be manufactured in accordance with the provisions of this Act, |
| except that when any goods of a class dutiable on entry into customs territory whether in their original condition or after manufacture or as part or ingredient of any goods manufactured in a free trade zone are sent from a free trade zone into the customs territory, the goods shall be subject to the provisions of the Customs Act 1960. |
[Act 33 of 2023 wef 01/03/2024] [Act 33 of 2023 wef 25/11/2024] |
| (3) Goods, except such as are prescribed under subsection (4), which have been brought into a free trade zone from customs territory shall be deemed to be exported for the purpose of drawback under the Customs Act 1960. |
| (4) Subsection (2)(b) shall not apply to such goods as may be prescribed from time to time by the Minister by notification in the Gazette, save that such prescribed goods may be stored in a free trade zone for the purpose of transhipment or survey and repacking before removal into customs territory, and that such survey and repacking shall not be carried out except with the prior permission of a senior officer of customs and shall be subject to such conditions as he may think fit to impose. |
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| Manipulation or manufacture in free trade zone |
6.—(1) Any person who intends to do any of the following in a free trade zone must give the Director-General written notice of the intention and obtain the Director-General’s prior written permission to do so:| (a) | assemble, mix or otherwise manipulate any goods for entry into customs territory, where any goods or materials used in the assembly, mixing or manipulation are dutiable goods; | | (b) | manufacture any goods. [Act 33 of 2023 wef 01/03/2024] |
| (2) Permission under subsection (1) shall be granted or withheld as the Director‑General in his discretion shall think fit. [Act 33 of 2023 wef 01/03/2024] |
| (3) Subject to subsection (4), any manipulation or manufacture permitted under this section shall be subject to the regulations made under this Act and to such conditions as the Director‑General may think fit to impose. |
| (4) The Director-General may, in his discretion, give an allowance for recoverable and irrecoverable waste, but if recoverable waste is sent into customs territory, the recoverable waste is subject to the payment of customs duty and payment of tax in its condition and quantity and at its weight at the time of entry. [Act 33 of 2023 wef 01/03/2024] |
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7.—(1) The rate of customs duty and the valuation, if any, applicable to any goods subject to customs duty shall be —| (a) | in the case of goods lawfully brought into or manufactured in a free trade zone —| (i) | if there has been no manipulation or manufacture effecting a change in tariff classification, the rate and valuation in force on the day on which the goods are sent into customs territory; | | (ii) | if the goods are used in the manufacture of any product which is not of a class dutiable on entry into customs territory, the rate and valuation in force on the day on which the goods are removed for manufacture; and | | (iii) | if the goods are manufactured from materials which are not subject to customs duty, the rate and valuation in force on the day on which the entry of the manufactured goods into customs territory is authorised by the proper officer of customs; and |
| | (b) | in the case of uncustomed goods, the rate and valuation in force on the day on which the goods became uncustomed goods, if known, or the rate and valuation in force on the day of seizure, whichever is the higher. |
| (2) [Deleted by Act 33 of 2023 wef 01/03/2024] |
| (3) [Deleted by Act 33 of 2023 wef 01/03/2024] |
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| 8.—(1) No retail trade shall be conducted within a free trade zone unless authorised in writing by the licensed FTZ operator of the free trade zone and subject to such conditions as the licensed FTZ operator of the free trade zone may impose. [Act 33 of 2023 wef 01/03/2024] [Act 33 of 2023 wef 25/11/2024] | (2) The licensed FTZ operator must, within the prescribed period after each authorisation of any retail trade under subsection (1), submit to the Director-General the prescribed information and documents in respect of the authorisation. [Act 33 of 2023 wef 01/03/2024] [Act 33 of 2023 wef 25/11/2024] |
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| Use and consumption of dutiable goods and taxable goods |
| 9. Subject to sections 5, 6 and 8, a person who knows or has reason to believe that any customs duty or tax on any dutiable goods or taxable goods in a free trade zone has not been paid to the Director-General, must not use or consume the goods, unless the customs duty and tax on the goods are paid to the Director-General before the use or consumption. [Act 33 of 2023 wef 01/03/2024] |
| Authorisation to enter or reside in free trade zone |
| 10.—(1) A person must not enter or reside in a free trade zone without the permission of the licensed FTZ operator of the free trade zone. [Act 33 of 2023 wef 25/11/2024] | (2) Despite any permission granted by the licensed FTZ operator under subsection (1), the Director-General may, by written order to any person, prohibit the person from entering or residing in the free trade zone. [Act 33 of 2023 wef 01/03/2024] [Act 33 of 2023 wef 25/11/2024] |
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| Offences and penalties under this Part |
10A.—(1) Any person who fails to comply with a direction given by a licensed FTZ operator under section 5(2), or who fails to comply with section 6(1), shall be guilty of an offence and shall be liable on conviction to —| (a) | a fine not exceeding the greater of the following:| (i) | $10,000; | | (ii) | the sum total of the customs duty and tax on the goods to which the non-compliance relates; or |
| | (b) | imprisonment for a term not exceeding 12 months, |
[Act 33 of 2023 wef 25/11/2024] | (2) Any person who contravenes section 8 shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000. |
(3) Any person who contravenes section 9 shall be guilty of an offence and shall be liable on conviction to —| (a) | a fine not exceeding the greater of the following:| (i) | $10,000; | | (ii) | the sum total of the customs duty and tax on the goods to which the contravention relates; or |
| | (b) | imprisonment for a term not exceeding 12 months, |
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| (4) Any person who contravenes section 10(1) or a written order of the Director-General under section 10(2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000. [Act 33 of 2023 wef 01/03/2024] |
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