Organization : Inland Revenue Authority of Singapore
Scheme Name : Approved Contract Manufacturer & Trader (ACMT) Scheme
Country : Singapore
Website : https://www.iras.gov.sg/irashome/GST/GST-registered-businesses/GST-schemes/Industry-Specific-Schemes/Approved-Contract-Manufacturer-and-Trader–ACMT–Scheme/
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IRAS ACMT Scheme
Contract manufacturers and traders under this scheme are relieved of the need to account for GST on value added activities supplied to non-GST registered overseas customers.
Related : IRAS AISS Approved Import GST Suspension Scheme Singapore : www.statusin.org/42934.html
The ACMT Scheme is a scheme designed to relieve businesses (e.g. local contract manufacturers) that have substantial business with non-GST registered overseas customers of the need to account for GST on value added activities performed on the goods of such customers.
The scheme is currently available to contract manufacturers within the
** Semi-conductor industry;
** Printing industry; and
** Biomedical industry – Active Pharmaceutical Ingredients (APIs) manufacturing.
Contract manufacturers in other business segments in the biomedical industry will be considered for the ACMT scheme on a case-by-case basis.
Benefits of ACMT Scheme
Disregarding Supply of Value-Added Activities
You are able to disregard the supply of value added activities (e.g. processing, assembly and testing services) to your non-GST registered overseas client when the goods you have treated/ processed are :
** Delivered to another ACMT person; or
** Delivered to the final customer of the overseas client.
You are also able disregard the supply of value added service relating to failed or excess productions, to your non-GST registered overseas client if the goods you have treated/ processed are :
** Exported; or
** Delivered locally to a waste management vendor for disposal or destruction at no consideration.
Enjoying Import GST Suspension
You can enjoy import GST suspension for the following scenarios :
** Importation of your own goods in the course or furtherance of your business;
** Importation of goods belonging to your overseas non-GST registered principal for supply (either in Singapore or for export), as a section 33(2) agent *;
** Importation of goods belonging to your overseas non-GST registered principal which will subsequently be re-exported, as a section 33A agent *;
** Importation of goods (for example, raw materials) consigned to you by your non-GST registered overseas client on which value added activities are performed under ACMT scheme; and
** From 1 Jan 2015, re-importation of goods which you previously sent abroad for value-added activities, belonging to your local customer or GST-registered overseas customer if the requirements under section 33B explained in GST Claiming of GST on re-import of value-added goods (349KB) are satisfied.
Claiming GST on Local Purchases
You can claim the GST incurred on goods (for example, raw materials) locally purchased by your non-GST registered overseas client and delivered to you on which you perform value added service, on behalf of the overseas client as if it is your own input tax.
The goods should become inputs to your treated or processed goods which are subsequently :
** Exported; or
** Delivered to another ACMT person or a customer of your overseas client.
You can only make the above input tax claim if you have either :
** Paid the GST on the goods yourself; or
** Refunded the GST to your overseas client who has paid the GST first.
Applying for the Scheme
According to the role you perform in the contract manufacturing supply chain, you can apply for ACMT Scheme either as an approved contract manufacturer (ACMT CM) or an approved logistics company (ACMT LOG).