SG to amend Free Trade Zone Act 

The government is proposing three changes to the regime.

Singapore has proposed to amend its Free Trade Zone (FTZ) Act to enhance the regulation and control of goods that flow through its FTZs.

The government will introduce three changes to the FTZ regime.

Under the Free Trade Zones (Amendment) Bill, there will be a new licensing regime for the operators of Singapore’s FTZs.

“In the past, our FTZs were operated by public bodies appointed by the Minister for Finance. As these entities have since been privatised, a licensing regime is more fit for purpose,” Senior Minister of State for Finance Chee Hong Tat told the Parliament.

“Through the licensing regime, we will be able to specify and enforce the requirements to ensure the overall security of our FTZs, and improve our regulation of the flow of goods and persons within the FTZ,” Chee added.

The bill also plans to implement new regulations on cargo handlers and other cargo agents.

“While cargo handlers and agents will not be subject to a licensing regime, the proposed amendments seek to lay out their responsibilities in terms of securing the goods under their charge and data provision,” Chee said.

Lastly, the bill will introduce enhancements to the enforcement powers of the Director-General and officers of customs.

“The Director-General of Customs will be allowed to grant, renew, suspend or revoke licences. He or she can impose or modify licensing conditions and order the removal of dangerous goods, as well as the detainment of goods for Customs’ inspection,” Chee said.

“The bill will also introduce powers for officers of customs to enter any area within the FTZ and inspect or remove goods within the FTZ. They will also be empowered to request information for investigation, witness examination, arrest of any person without warrant, and search of any arrested person,” he added.

Explaining why Singapore’s FTZ regime needs a boost, Chee underscored that “there have been growing concerns of FTZs around the world being misused for illicit activities.”

“Illegal actors will try to disguise their actions as legitimate trade – for example, by falsely declaring cargo manifest data, or by swapping out legitimate goods with contraband before re-exporting,” Chee said.

“The legislative amendments aim to update and strengthen our FTZ regime to keep pace with evolving threats and the increasing sophistication of illegal actors. We are proposing changes in this bill to further enhance the regulation and control of goods that flow through our FTZs,” he added.