ASEAN and ASEAN related FTAs allows for this arrangement where goods brought into Singapore from a FTA partner country, can then subsequently be re-exported (no substantial processing done in Singapore) to another FTA partner country and still enjoy the tariff concessions.

Under the above arrangement, goods are manufactured in Malaysia, shipped to Singapore where there are only minimal processes such as bulk-breaking and labelling before being sent to Japan. The Malaysia based exporter would apply for a Preferential Certificate of Origin (PCO). With this certificate, the Singapore based company would apply for a Back to Back PCO from Singapore Customs. The Japan based importer would use this original certificate to claim tariff concessions.
Do note that all three parties are members to a single FTA.

A document certifying the country of origin of specified goods that enables the importer to claim preferential tariff treatment for the goods under an FTA.

The final product must have a different tariff classification (HS Code) from that of imported or non-originating raw materials used in the manufacturing process of the product.

The value of the good imported inclusive of the cost, insurance and freight up to the port or place of entry in the country of importation.

Allows countries which are part of a preferential trade agreement to share production and jointly comply with the relevant rules of origin provisions. (i.e., a producer of one contracting party of a free trade agreement is allowed to use input materials from another contracting party without losing the originating status of that input for the purpose of the applicable rules of origin).

The market value of a product at the customs frontier of the economy from which it is exported. It is used in the origin rules of FTAs to calculate the Regional Value Content of a good.

An international system of six-digit codes developed by the World Customs Organisation that allows all participating economies to classify traded goods on a common basis. Beyond the six-digit level, countries are free to introduce national distinctions for tariffs and other purposes.

The non-discriminatory tariff charged on imports from all trading partners (excludes preferential tariffs under FTAs). This will be the import duty Singapore exporters pay in the absence of preferential rates under an FTA.

An agreement between two or more parties to mutually recognise or accept each other’s conformity assessment results (e.g. test reports, certificates and inspection results).

A specific rule of origin, or specific set of rules, that applies to a product to determine whether it can be considered originating in an FTA party.

A rule of origin that classifies a product as an originating good if the key manufacturing process that characterises the product occurs in Singapore. (e.g., Chemical reaction rule; isomer separation rule; standard materials rule; compounding rule)

Laws, regulations and administrative procedures which determine whether a product can be considered originating in an FTA party and therefore eligible for preferential tariff treatment under an FTA.

A type of rule of origin which requires a product to have undergone a specific amount of value added in either or both of the FTA partners.

A customs duty imposed on the importation of a good. They are levied either on an “ad valorem” basis (i.e. a percentage of the value of the good) or on a “specific” basis (e.g. $7 per 100kgs). Tariffs give price advantage to similar locally-produced goods and raise revenues for the government.

A rule of origin that classifies a product as an originating good if the value of the product’s local content is above a specific qualifying threshold.

Some FTAs allow for the Importing Customs authority to accept PCOs in cases where sales invoice is issued by a company in a third country. The invoice can come from countries not members to the FTA.

Under the above arrangement, the goods are shipped directly from Malaysia to Korea but the invoicing is done through a third-party in Australia. The PCO in this instance, would be sent directly from the manufacturer in Malaysia to the importer in Korea, along with the shipment.