TFWA gains duty reprieve for Asia Pacific exhibitors

The Tax Free World Association (TFWA) has revealed that it has gained a duty concession for liquor and tobacco exhibitors at next week’s TFWA Asia Pacific show. The government has agreed to grant liquor and tobacco samples imported to Singapore for the exhibition temporary import status, meaning only those products consumed or given away will be subject to duty and GST.

Previously liquor and tobacco products were treated as permanent imports and were subject to the payment of duty and GST at the point of importation.  Under the new provision duty and GST will be temporarily suspended on arrival in Singapore or extraction from a local licensed warehouse. 

At the end of the exhibition, duty and GST will be collected based on the quantity consumed or given away.  The unused quantity that is re-exported out of Singapore or returned to the licensed warehouse will be exempt.   

TFWA said that discussions on the subject began last year, with the aim of gaining an exemption for the 2008 show. "However," it said, "in typical pro-business fashion, the Singapore government decided to grant the approval commencing this year. TFWA communicated the good news to all liquor and tobacco exhibitors as soon as the information was received from the authorities in the hope that they would be able to participate in the temporary import scheme for TFWA Asia Pacific 2007 even at this late stage."

TFWA Asia Pacific will run from May 15-18 at the Singapore Suntec Centre.

Editor’s note: The new scheme and, more importantly, the negotiations that preceded it, are welcome signs of TFWA’s determination not to be subjected again to a situation similar to the one faced at TFWA World Exhibition in Cannes last year, when a sudden change of heart by French Customs officials meant that tobacco exhibitors had their stock confiscated, with authorities finally relenting and allowing them to display half their products. Even in view of the country’s strict tobacco legislation, the Singaporean government has continually done its best to appreciate the nature of the TFWA show, and this latest example again shows its commercial awareness - and one of many reasons why Singapore remains an ideal venue for the exhibition.