Blue Water strengthens Singapore hub with zero-GST warehouse licence

With a new Zero-GST warehouse licence, Blue Water can now store customers' goods for an indefinite period of time with Goods and Services Tax fully suspended. This allows greater flexibility in project planning and improves cash flow.

At our warehouse facility in Singapore, clients can now store imported non-dutiable goods with Goods and Services Tax (GST) fully suspended for an indefinite period of time. This follows Singapore Customs granting our facility Zero-GST (ZGS) warehouse status.

"Safe and secure storage is a crucial part of the value we bring to the supply chain. Blue Water is accountable for goods stored in the licensed premises and manages all declarations and permits for movements in and out of the facility in full compliance with stipulated permit conditions. This is pivotal as customers trust us for our professionalism," says Kevin Sandhu, Head of 3PL Services, Asia.

What is a Zero-GST warehouse licence?

In practice, a Zero-GST warehouse allows companies to store high-value goods without tying up cash in GST while awaiting onward transport.

The Zero-GST (Zero-Goods and Services Tax) licence is administered under the Singapore Customs' Zero-GST Warehouse Scheme. To obtain the licence, companies must undergo comprehensive assessments and meet mandatory criteria, such as having good compliance records with Singapore Customs.

GST is payable only upon release of goods into the domestic market of Singapore. GST is not payable when goods are removed for export, or when supply or sale takes place in the warehouse.

Safe, efficient storage to support customer supply chains

Blue Water's ZGS-licensed facility in Jurong, Singapore features 10,000 sqm warehouse and 10,000 sqm staging yard as well as 150 sqm office space. It's also equipped with advanced handling infrastructure and strategically located close to the seaport and airport, and near the Tuas-Malaysia gateway, ensuring seamless multimodal connectivity.

Regional Senior Vice President, Asia, Jason Goh expresses his satisfaction with the ZGS designation:

"With faster turnaround and greater flexibility, we can now deliver even greater value to our clients in Asia," Goh explains.

 

A natural staging point for global distribution

Singapore's strategically advantageous position as the world's busiest transshipment hub makes it a natural staging point for both regional and global distribution of goods. Blue Water's facility is located close to the Tuas Mega Port and has direct access to Changi Airport, enabling us to serve customers with quick, cross-regional transports of time-critical cargo. This is where the Zero-GST licence becomes crucial:

"We see it constantly in project logistics," says Allen David, Regional Director - Project Logistics, Asia. "Cargo arrives ahead of schedule, or the offshore window shifts, and suddenly equipment needs to sit for longer than planned. GST exposure on high-value equipment can run into tens of thousands of Singapore dollars - tied up for weeks in refund claims on cargo that was never meant for the local market," and continues:

"Our Zero-GST licence closes that gap. Multi-origin shipments consolidate here, GST-free, until it moves to site," David explains.

Without ZGS

With Blue Water ZGS
GST is paid upfront on all imported spares GST suspended indefinitely on stored inventory
Refund cycle: 4-8 weeks to recover No outlay, no recovery cycle needed

Emergency parts cleared through standard customs

 Emergency parts already inside licensed facility, cleared on removal
Re-export documentation required per shipment Zero-rated on removal for international vessel consumption
Risk of port call delay if parts not cleared in time Parts pre-staged, ready for same-day dispatch

 

Supporting customers across key industries

The ZGS designation significantly enhances Blue Water's position and enables us to service clients across Oil & Gas, floating production, mining as well as marine and cruise logistics. These sectors all rely on Singapore as a regional distribution and consolidation hub.

Our Regional Director - Marine Logistics, Sea and Reefer APAC, Deepak Mahtani sees a lot of potential in the marine and cruise industry with this new zero-GST warehouse licence:

"For our cruise and marine clients, efficiency and cost control are critical. By operating a Zero-GST, we're able to remove a layer of tax which translates directly into improved cashflow. With Singapore being a global maritime hub, having this facility is strategically invaluable, as it enables faster turnaround times, flexible provisioning and better inventory management for our customers' vessels operating across the region," Mahtani says and adds: "We appreciate the Singapore Customs for putting trust in us to perform this valuable service for our clients."

For more information about warehousing and transshipment services in Singapore, visit our Singapore office's page.

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