Singapore Free Trade Zone (FTZ)
A Free Trade Zone (FTZ) in Singapore is a designated area — at the container terminals, Jurong Port and Changi Airport's airfreight zone — where goods can be stored, repacked, transhipped and re-exported without customs duty or GST, and generally without a customs permit for movement within the zone. Duty and GST only arise if the goods leave the FTZ and enter Singapore for local consumption.
FTZs are the legal foundation of Singapore's transhipment and entrepôt role: the vast majority of containers that pass through Singapore are transhipped — arriving on one vessel and leaving on another — never formally entering the country. The zones are governed by the Free Trade Zones Act and operated by parties such as PSA, Jurong Port and Changi Airport Group.
Singapore's entire hub economy rests on the FTZ concept: cargo can flow through the port and airport without triggering import formalities, so a box from anywhere can be consolidated, transhipped and re-exported with minimal friction. Understanding what happens inside — and at the boundary of — an FTZ is essential to moving cargo through Singapore.
Do I pay duty on goods in an FTZ?
No — goods stored, transhipped or re-exported within the FTZ are free of duty and GST. These apply only if the goods leave the zone for local consumption.
Why are FTZs central to Singapore?
They enable transhipment and entrepôt trade — the bulk of Singapore's port throughput — by letting cargo pass through without formally being imported.