Post-Clearance Audit

A post-clearance audit is a structured examination of a trader’s relevant commercial systems and processes, financial and non-financial records, physical stock and other assets, to measure and improve compliance.

It is conducted after the release of the goods from Customs control. It can take place at the traders’ premises or at Customs’ premises, and may take into account specific transactions, or cover imports and/or exports undertaken over a certain period of time.

The purpose of the post-clearance audit is to verify the accuracy and authenticity of declarations and other returns made to Customs.

How are companies selected?

All traders and declaring agents who deal with Customs may be subjected to post-clearance audits and are selected in accordance with our risk management framework.

What happens when a company is selected?

Typically, an audit will involve a series of steps:

1) Customs may contact the company to be audited (“auditee”) and request documents or arrange for an interview with relevant personnel of the auditee. Customs may also conduct unannounced audits at the business locations of the auditee. Regardless of the type of audit, the auditee will be informed of the purpose, scope and requirements of the audit.

2) During the interview, Customs will find out more about the auditee’s business model, operations, systems and accounting practices. Auditees may take the opportunity to seek clarification on any issues about legislation and procedures administered by Customs.

3) After the interview, Customs will verify the accuracy of the trade declarations and/or other returns made to Customs against the relevant trade documents to be provided by the auditee. Depending on the circumstances, this verification may be conducted at either Customs or the auditee’s premises. Examples of relevant trade documents include TradeNet permits, invoices, packing lists, bills of lading, air waybills, certificates of origin, payment records and product specifications.

4) Upon completion of the audit, Customs will inform the auditee of the audit outcome and when applicable, the compositions or other penalties to be imposed on the auditee. Customs will also discuss any errors detected and provide suggestions to improve the auditee’s compliance level.

Duration of Audit

The duration of audit will vary on a case-by-case basis depending on the scope covered and the auditee’s level of cooperation.

Legal Obligations of Auditees

Auditees are required under the relevant laws to provide Customs officers with reasonable assistance and cooperation to conduct the audit. This includes the submission of all required trade documents in a timely fashion, granting access to computers and mobile phones, and to ensure that all information provided is true and accurate.

Traders are also reminded that they are required to retain documents pertaining to import, export and transhipment of goods for 5 years.

How can the company be sure that the Customs officers conducting the audit are legitimate?

Customs officers are required to show identification to the auditees at the point of contact. Auditees may also ask for identification from the Customs officers to verify the authenticity of the ongoing audit.

What if there is confidential company information on the audited documents?

Customs will maintain confidentiality of the information received from the company. Information received during the audit from the company is used solely to determine if the company has complied with Singapore’s domestic legislations and would not be shared with other companies.