How Nominee Directors Simplify the Hand-Carried Exports Scheme (HCES)

As a small business owner in Singapore, expanding your reach globally can seem overwhelming. One of the challenges you might face is the Hand-Carried Exports Scheme (HCES), which allows businesses to zero-rate Goods and Services Tax (GST) on qualifying exports made via Changi International Airport. While the potential savings from this scheme are significant, managing the paperwork and ensuring compliance with customs regulations can be tricky. This is where nominee directors can make a huge difference.

What is the Hand-Carried Exports Scheme (HCES)?

The Hand-Carried Exports Scheme (HCES) is a government initiative that enables businesses to export goods via Changi Airport while enjoying zero-rated GST. However, there are specific conditions that businesses must meet to qualify. These include compliance with strict customs regulations, proper documentation, and understanding the nuances of the process.

• Eligibility: The scheme applies only to goods physically hand-carried out of Singapore.
• GST Zero-Rating: This allows businesses to avoid paying GST on qualifying exports.
• Documentation Requirements: The process requires precise and timely submission of the required paperwork to ensure compliance with customs regulations.

Example: A small business exporting handcrafted products uses the HCES to reduce GST liabilities, ensuring all customs documentation is filed correctly to qualify for the scheme.

How Nominee Directors Assist with the HCES

Nominee directors play an essential role in simplifying the HCES process. They are responsible for ensuring compliance with GST regulations, managing export permits, and handling all necessary documentation to ensure that the export process runs smoothly. Here’s how nominee directors make the HCES easier for your business:

1. Ensuring Compliance with GST Regulations

Nominee directors ensure your business complies with the requirements for GST zero-rating under the HCES. Their responsibilities include:

• Handling Export Permits: Nominee directors can apply for necessary permits such as the OUT Permit or Cargo Clearance Permit on behalf of the business, ensuring they are processed promptly.
• Documenting Compliance: They ensure all required paperwork, such as invoices and proof of export, is accurately prepared and filed on time to avoid penalties.

Example: A small fashion brand uses a nominee director to apply for the necessary export permits. This ensures that all paperwork is correctly filed, and GST zero-rating is applied smoothly.

2. Managing Export Documentation

Proper export documentation is essential for the HCES process. Nominee directors assist with the following:

• Invoices and Proof of Export: They help generate and verify invoices, proof of goods leaving Singapore, and other essential documents required by Singapore Customs.
• Correct Filing of Documents: Nominee directors ensure that all documents are submitted correctly and within the required timeframes, preventing delays in the approval process.

Example: A small tech company needs to submit invoices and proof of export for its gadgets. The nominee director ensures all documents are prepared and filed properly for a seamless export process.

3. Facilitating GST Refund Claims

Once goods have been successfully exported, businesses are eligible to claim a GST refund. Nominee directors ensure the process goes smoothly:

• Filing for Refunds: They handle the filing of necessary paperwork for GST refund claims.
• Timely Processing: Nominee directors expedite the refund process by ensuring all documents are submitted promptly, allowing businesses to reclaim their GST without delays.

Example: After exporting a batch of health supplements, a small business claims a GST refund. The nominee director ensures the paperwork is submitted correctly, speeding up the refund process.

✅Counto’s company incorporation plans include nominee director services, ensuring seamless business establishment in Singapore. Learn more here.

Key Steps in the HCES Process Managed by Nominee Directors

Nominee directors assist in several critical steps to ensure that the HCES process is efficient and compliant with the regulations. These steps include:

1. Obtaining the Correct Export Permits

• OUT Permit: This permit is essential for goods to leave Singapore, and nominee directors can apply for this on behalf of the business.
• Cargo Clearance Permit: Some goods may require additional permits, which nominee directors ensure are in place.
• Nominee Directors’ Role: They manage the entire permit application process, making sure everything is compliant and approved.

Example: A business exporting luxury handbags needs an OUT Permit and Cargo Clearance Permit. The nominee director handles the paperwork to ensure that all permits are in place, so the export can proceed smoothly.

2. Goods Inspection at Changi Airport

• Customs Clearance: Goods must be inspected at Changi Airport for customs clearance. Nominee directors ensure all relevant documentation is submitted promptly to avoid delays.
• Ensuring Compliance: They coordinate with Singapore Customs to ensure that all requirements are met for GST zero-rating.

Example: A small exporter of organic food products presents their goods at Changi Airport for inspection. The nominee director ensures all paperwork is correctly submitted, ensuring smooth customs clearance.

3. Managing Deadlines and Compliance Risks

• Tracking Deadlines: Nominee directors ensure that all required documents are submitted before the deadlines to avoid penalties or losing GST zero-rating.
• Risk Mitigation: If any issues arise during the export process, nominee directors act swiftly to resolve them and maintain compliance.

Example: A business exporting electronic gadgets must meet strict deadlines to submit export documents. The nominee director ensures that all deadlines are met, ensuring the smooth processing of the export.

Additional Benefits of Working with a Nominee Director

Beyond assisting with the HCES, nominee directors offer additional advantages for small businesses:

1. Promoting Ethical Practices

Nominee directors ensure that all export documentation and compliance measures are handled ethically and transparently, protecting the business from potential legal issues.

2. Safeguarding Against Legal Risks

By managing the HCES process and ensuring strict compliance, nominee directors reduce the risk of fines or legal disputes, allowing your business to expand globally with peace of mind.

Example: A startup exporting tech gadgets relies on its nominee director to manage the export process, ensuring full compliance with all regulations and reducing the risk of legal issues.

Summary

The Hand-Carried Exports Scheme (HCES) offers significant benefits for small businesses looking to export goods internationally while avoiding GST costs. However, the complexities of the scheme—ranging from export permits to GST refund claims—can overwhelm many business owners. Nominee directors simplify this process by managing all the necessary steps, ensuring compliance, and handling the paperwork for you. With their assistance, your business can take full advantage of the HCES and focus on growing your exports internationally with confidence.

Trustworthy Nominee Director Services in Singapore

Counto includes nominee director services in our incorporation plans, providing reliable support for business owners establishing a company in Singapore. Speak to us directly on our chatbot, email [email protected], or use our contact form to get started.

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