The EU-Singapore Free Trade Agreement entered into force
The European Union – Singapore Free Trade Agreement (EUSFTA) was approved by the EU Member States on November 8, 2019. This means that this agreement entered into force on November 21, 2019.
This agreement is the first bilateral trade agreement between the European Union and a Southeast Asian country. It’s a step towards a closer relationship between the EU and one of the most dynamic regions in the world.
Bilateral trade agreement
A bilateral trade agreement means that the agreement is mutual and all binding agreements (such as lower import duties, more flexible customs procedures and recognition of standards) apply mutually.
Employees, farmers and businesses of all sizes benefit from this trade agreement, both in the EU and in Singapore. It also contains strong clauses that protect human rights, labor rights and the environment.
With this Free Trade Agreement, 16 EU trade agreements have been agreed upon over the last five years. This comes down to a total amount of 42 trade agreements. This means that it’s the largest network in the world.
Trading with Singapore becomes easier and more profitable. According to the trade agreement, Singapore will eliminate all import duties on EU products and the EU will eliminate import duties on more than 80% of all imports from Singapore. The import duties on the remaining 20% will also be eliminated within a few years.
Don't forget to register to the REX system!
Companies should take into account that once the agreement has entered into force, exporting companies must register in the registered exporter system (the REX system) in order to benefit from preferential rates. To become a Registered Exporter (REX), companies must submit a Customs Form. Please ask your local Customs contact where to find this form. Registration is not required for deliveries of less than € 6.000,-.
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