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Approved Contract Manufacturer and Trader (ACMT) Scheme Singapore – GST Relief for Contract Manufacturing Arrangements

Businesses involved in contract manufacturing and international trading arrangements may face GST costs and administrative complexities when goods
move between overseas principals, Singapore contract manufacturers and overseas customers.
To support Singapore’s position as a global manufacturing and trading hub, the Inland Revenue Authority of Singapore (“IRAS”) introduced the Approved Contract
Manufacturer and Trader (“ACMT”) Scheme. Under the scheme, approved contract manufacturers may enjoy GST relief on qualifying goods supplied by overseas customers.

What is the Approved Contract Manufacturer and Trader (ACMT) Scheme?

The Approved Contract Manufacturer and Trader (“ACMT”) Scheme is a GST
scheme administered by Inland Revenue Authority of Singapore to support qualifying
contract manufacturing arrangements involving overseas principals.

Under normal GST rules:

  • goods imported into Singapore may attract import GST; and
  • local supplies of goods may be subject to GST.

    Under the ACMT Scheme:
  • approved contract manufacturers may enjoy GST relief on qualifying goods belonging to overseas customers under prescribed arrangements.

Benefits of IGDS

Key benefits of the ACMT Scheme include:

 

Improved Cash Flow

The scheme helps alleviate GST cash flow costs arising from importation and movement of goods.

 

Facilitation of Cross-Border Manufacturing Arrangements

Businesses may structure manufacturing and trading arrangements more efficiently
using Singapore as a regional hub.

 

Reduced GST Administrative Burden
The scheme simplifies GST treatment for qualifying movements and supplies of goods involving overseas principals.

 

Support for Global Supply Chains
The ACMT Scheme supports multinational businesses operating complex manufacturing and distribution arrangements through Singapore.

Who Can Apply for the ACMT Scheme?

Businesses may apply for the ACMT Scheme if they:

  • are GST-registered in Singapore;
  • operate qualifying contract manufacturing arrangements;
  • provide manufacturing or value-added activities for overseas customers; and
  • satisfy IRAS’ qualifying conditions and compliance requirements.

Need Assistance with the ACMT Scheme? How Jed Tax Consulting Can Help.

If your business operates contract manufacturing or international trading
arrangements involving Singapore, the ACMT Scheme may provide significant GST
and cash flow benefits.

At Jed Tax Consulting, we assist businesses with:

  • ACMT applications;
  • ACMT renewal support;
  • GST reviews for contract manufacturing arrangements;
  • import/export GST advisory;
  • GST compliance reviews; and
  • ASK and ACAP support.

Contact Jed Tax Consulting today to discuss:

  • ACMT eligibility;
  • GST treatment of manufacturing arrangements;
  • import/export GST compliance; or
  • GST risk reviews for cross-border supply chains.