For Australian-based businesses, manufacturing within Australia can be expensive. That’s why many small business owners turn to importing from Singapore.
According to The Department of Foreign Affairs and Trade, Australia’s import trade with Singapore averages over AUD 9 billion annually. This ranks Singapore 6th in terms of merchandise trade in Australia.
If you are starting to look into importing from Singapore, this guide will help you discover how to identify, source, and import goods from Singapore to sell in Australia.
Importing from Singapore — The process
Here’s what you need to do if you want to import from Singapore.
- Obtain information on the types of goods you are allowed to import and carry out market research.
- Explore online marketplaces of manufacturers and suppliers to source the goods you want.
- Carry out due diligence on your supplier and sign a contract with them.
- Arrange for shipping and logistics from Singapore to Australia.
- Understand the various regulations, tariffs, and licenses you need to export.
- On arrival of your goods in Australia you pay the necessary duty, tariffs, and any other fees.
- Market your goods for sale in Australia.
Dealing with importing, international shipping, tariffs, licenses and more can be tricky. We strongly recommend bringing someone into your business who has experience and knowledge in the field.
What can you import from Singapore to Australia?
Before taking the plunge to import, it’s crucial to understand your market. Make sure you conduct market research, analyse your competition. Perhaps you may want to survey your existing customers to gather qualitative and quantitative data.
Here are some hints and tips:
Avoid food and perishables — It’s very expensive to import goods that can be spoiled, as you’ll need specialized containers. Additionally, Australia has strict regulations on importing produce.
Avoid importing products that are widely available already — It can be hard to wiggle your way into the market when the supply for products are widely available. Plus, larger companies tend to order in bulk at wholesale prices.
Source items based on your prospective market, not the other way around — Discover what your prospective customers want or need and look for items based on your findings. Avoid looking for an item first then finding a market segment.
Understand your margins and pricing — Be sure to calculate your fixed and variable costs and add them to your pricing strategy.
Sourcing goods from Singapore
There are a selection of Singaporean suppliers and manufacturers to choose from. You can find them below:
- Alibaba Singapore Manufacturers
- Singapore Companies Directory
- Singapore Sources
- SG Electronics
- Many more…
Once you know the types of products you’re after, make a shortlist of suppliers. Next, you’ll want to:
Read reviews on the suppliers including their customer service, the quality of the goods they provide, and any issues others have had with them.
Contact the suppliers and request a sample of the goods you’re interested in. When you receive the sample have it independently appraised to make sure you’re getting what you pay for.
Ask the supplier about their terms for payment, how long it will take them to send the product to you, what protections and guarantees you have, and what their policies are on returns.
Complete any other due diligence, and if you’re satisfied, sign a contract with them.
Typical container costs — Shipping from Singapore to Australia
If you’re only purchasing a small quantity or your items aren’t too heavy or bulky, consider air freighting them back to Australia. If you’re buying larger quantities, you’ll probably have to use a shipping container.
The Sea Freight Calculator lists the cost of renting a full container from Singapore to Australia as approximately:
20 ft container — $950 USD
40 ft container — $1,300 USD
And according to Australia Trade, renting part of a container will cost you between $150 and $250 AUD per cubic meter or 1,000 kilos, whichever is greater.
However, these are purely the costs to ship goods from Singapore to Australia. Once you get them here you’ll need to pay for getting your goods to a warehouse, storage, insurance, duties, and other fees.
Understanding government regulations on goods imported from Singapore into Australia
When importing goods into Australia, take note regulations that may apply. To learn more, read this comprehensive guide.
Some of these include:
- You may be required to apply for a special permit when importing certain chemicals, pharmaceuticals, produce, and more.
- Plant and animal goods may be quarantined.
- Tariffs, duties, and taxes may apply— More on that below.
- Some importers may be eligible for government concessions.
- Free trade agreements could work to your advantage.
- Be aware of several other costs.
- Ensure that your goods are labeled correctly.
For full details, please do check out our guide to importing into Australia.
Understand costs to import from Singapore
Avoid the shock of getting a customs bill by understanding the costs involved when importing into Australia. The fees and charges could include:
The cost of buying the product.
Shipping, logistics, and distribution costs.
Tariffs and duties due toSingapore on export and Australia on import.
Taxes and tariffs on your imported goods. Spend some time learning about:
Generally, you will have to pay import duty and GST on goods valued over $1,000 AUD.
Import entry costs and processing charges – Customs will charge you a fee (typically under $200 AUD) for processing your goods.
Customs import duty is calculated as a percentage of the price you paid for the goods. The duty rate can range from 0% to 10%, but the rate for most goods is 5%.
Goods and services sales tax (GST) will also be charged based on the following:
The valuation of the goods plus;
The customs import duty amount plus;
The cost of insuring the goods and transporting them to Australia.
GST is charged at 10% of the final amount.
Note that this information is intended as a general guide – fees and charges can be influenced by what you’re bringing in, excise taxes, free trade agreements, and many other factors. Please check with customs based on your individual circumstance.
Certain types of goods are eligible for concessions (reducing the amount of duty you need to pay). You can find a full list and requirements through this page, just look for “List of current tariff concession orders.” You’ll also find additional details on concession schemes here.
Sell your products
Once you’ve received your goods from Singapore, market them and offer them for sale. Continue to research your markets, source goods, and sell them onwards at a profit, Good luck!
Paying for your goods in foreign currency
Doing import business from Singapore is usually done in US dollars or Singapore dollars.
If you are bringing goods in from Singapore, consider using OFX. They specialise in international payments and receipts for Australian businesses. Each client has a personal manager and access to a range of useful products like Forward Exchange Contracts, Options, Limit Orders and Currency Options.
OFX is a trusted partner of The Currency Shop.
Click on this link , sign up and never pay a transfer fee for your international money transfers. Ever.
OFX charges no transaction fees. Minimum transfer A$250. Third party intermediary fees may still apply.
What about receiving money in foreign currency?
Until recently, Australian businesses had 3 options to receive money from overseas customers:
- Get paid into a local Australian based, Australian dollar account.
- Open a Foreign Currency Account, usually with a bank
- Use a payment gateway like PayPal, Braintree or Stripe
Unfortunately, these options are usually filled with fees, balance requirements or massive exchange rate mark-ups.
In October 2017, TransferWise released the Borderless account in Australia and it’s really impressive. It allows you to receive, hold and transfer 27 different currencies.
The unique feature though, which is particuarly useful for businesses, is the ability to have local bank account details in USD, EUR, GBP or AUD. This makes receiving money from customer abroad, exceptionally ease.
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