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Singapore RDC Preserved FTA Savings Averaging $20,000 per Shipment

A Southeast Asia retailer was losing Free Trade Agreement savings because goods passed through a non-FTA hub before regional distribution. Shifting distribution into Singapore preserved FTA eligibility and created a repeatable document process.

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Table of contents

Customer Overview

Challenges

Solution

Results

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Customer Overview

Leading retailer and exclusive distributor in Southeast Asia
Retail vertical: apparel, footwear, and accessories
Service: regional distribution center for Southeast Asia origins
Annual throughput: 3.6 million pieces

Challenges

Hong Kong hub structure broke FTA eligibility for regional shipments
Distributor could not access savings when buying through the hub
Warehouse setup stored multiple SKUs per pallet in a floor-stack configuration

Solution

Set up an RDC in Singapore and bypassed the Hong Kong hub
Equipped the Singapore customs team to generate back-to-back Certificates of Origin
Trained origin teams to validate first-leg and second-leg Form D documentation

Results

Optimized the Asia distribution network
Duty savings averaging $20,000 per shipment
Additional vendor referral revenue at origin of US$30 per document set

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