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July 1, 2003

CIGARETTES DUTY ASSESSMENT BASED ON STICKS IMPLEMENTED IN SINGAPORE

With effect from 1 July 2003, excise duty of cigarettes will be assessed by sticks instead of weight. Each stick of cigarette (1 gram or less) will attract 25.5 cents in duty tax, every additional 1 gram or part thereof will attract another 25.5 cents. The Singapore Customs will also do away with the need to test-weigh of cigarettes for duty assessment.

There will be situations where the importer will be served with a ¡§Notification of test weighing of Cigarettes Products¡¨. Importers receiving such notifications are advised not to transmit duty payment until the test weighing by Customs on a particular consignment of cigarettes has been completed.

Traders may also conduct own test-weighing if in doubt. This implementation will bring significant benefits to traders such as savings on cigarettes samples, cost of cigarettes samples destroyed after test weighing, warehousing handling and incidental charges and enhanced business opportunities brought about by just in time delivery of goods to customers.

For detailed information, please refer to Circular 19/2003 dated 30 May 2003 at www.customs.gov.sg.

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