Saving 6.5% Duty on EXW Import of Precision Parts from Singapore to Shenzhen
Project Overview
Time: October 2023
Route: Singapore (PSA) ➔ Shenzhen (Yantian), China
Cargo: Precision Plastic Accessories/Handles/Casters
Volume: 2 x 40HQ Containers
Service: Import Sea Freight (EXW Terms)
Challenge: High tariff costs due to compliance errors and local pickup delays in Singapore.
The Challenges
In October 2023, a prominent Chinese trading company approached GWT Shipping to manage the import of high-quality precision engineering plastic parts from Singapore.
The client was facing a “double loss” scenario with their previous logistics provider:
Compliance Failure: The previous forwarder did not fully understand the China-Singapore Free Trade Agreement (CSFTA). Frequent errors in the “Form E” declaration meant the client could not claim duty exemptions, forcing them to pay an unnecessary 6.5% import tariff.
EXW Logistics Failure: Under EXW (Ex Works) terms, the buyer is responsible for pickup. The previous forwarder lacked a strong local network in Singapore, often missing strict appointment slots at the factory. This resulted in missed pickups, “empty run” fees for trucks, and high storage costs.
GWT Shipping's Solution & Actions
GWT Shipping leveraged our status as a Customs AEO (Authorized Economic Operator) and our strong Southeast Asian network to overhaul the supply chain:
1. AEO Compliance Strategy: Achieving Zero Tariffs
We acted not just as a transporter, but as a Customs Consultant. Upon taking the order, we immediately guided the Singapore factory on how to apply for the Certificate of Origin correctly under CSFTA rules. We pre-verified the data with China Customs before the ship arrived, ensuring the cargo would qualify for 100% Zero-Tariff treatment upon entry, directly saving the client thousands in tax costs.
2. Localized Singapore Coordination (The EXW Key)
Factories in Singapore’s industrial zones (like Jurong) have strict loading bay restrictions. Utilizing our established local network, our dispatch team locked in truck resources 24 hours before the cargo was ready. We precisely booked the factory Loading Bay slots, ensuring a seamless handover of documents and cargo. This eliminated the waiting fees and “missed slot” penalties common with the previous provider.
3. Direct Vessel Selection for Speed
While the distance is short, delays kill cash flow. Instead of using cheaper transshipment routes, we booked direct “Fast Boat” services via CNC or COSCO. This reduced the sea transit time to just 4-5 days into Shenzhen Yantian, significantly accelerating the client’s Letter of Credit (L/C) turnover.
4. Synchronized Documentation & “Instant Release”
We treated the flow of money and goods as one process:
Financial Flow: We assisted the client in auditing the Singapore agent’s bills to ensure rapid payment and release of the Telex Release Bill of Lading.
Cargo Flow: Using our AEO privileges, we completed the import declaration and tax payment while the vessel was docking. As soon as the containers hit the terminal, they received “Seconds-to-Release” clearance. Our protocol trucking fleet delivered the goods to the Shenzhen warehouse the very same day.
Results & Benefits
Under GWT Shipping’s management, the import cycle was drastically compressed:
Speed: The total door-to-door time was reduced to 8 days (down from the previous 15 days).
Savings: Professional compliance guidance successfully eliminated the 6.5% tariff expense.
Efficiency: Zero demurrage or empty-run fees in Singapore.
Client Review
We were bleeding money on tariffs and wasted time with our old forwarder. GWT Shipping proved that they are true compliance experts.
They fixed the Form E issue immediately, saving us 6.5% on every shipment, and the delivery speed is almost twice as fast.
They are now our exclusive partner for all Southeast Asian imports
— Our Trading Partner in Shenzhen
Founded in 2004, Shenzhen Guanwutong International Freight Forwarding Co., Ltd. (GWT) is a WCA- and AEO-certified global logistics provider offering end-to-end air, ocean, rail, express, and DDP solutions.
With bonded warehouses in Shenzhen, Dongguan, and Fuzhou, plus 24/7 customs brokerage and real-time tracking, we deliver reliable, compliant, and tailored freight services to 3000+ clients across 190+ countries.
Importing from Southeast Asia?
Don’t let compliance errors or local logistics gaps eat into your profits. GWT Shipping specializes in EXW terms and Free Trade Agreement optimization.
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