SG Customs: Two Singaporean men face S$3.34M fine each for evading duty & GST tax on 4.5M litres of diesel imported from Malaysia

Summary

• Two Singaporean men were each fined S$3,345,500 after admitting to fraudulent duty evasion involving diesel imports.

• The charges covered 4,527,099 litres of automotive diesel oil brought into Singapore between April and December 2024.

• Sixteen additional charges involved about S$2.5 million in duty and GST that the pair had avoided.

SINGAPORE: Two Singaporean men have each been fined S$3,345,500 after admitting to a scheme involving more than 4.5 million litres of diesel.

Singapore Customs said the men imported automotive diesel from Malaysia without the required declarations and permits. The scheme led to both duty and Goods and Services Tax being avoided.

Chua E Hong, 51, and Ng Leok Kwee, 48, each pleaded guilty to three charges of fraudulently evading duty under the Customs Act.

The three charges involved 4,527,099 litres of diesel imported between April and December 2024. About S$905,419 in duty was avoided.

Cheaper diesel brought into Singapore without permits

Singapore Customs said in its Oct 6 media release that the scheme was devised in early 2024.

At the time, Chua was managing director, and Ng was executive director of CNC Petroleum and PS Energy. The two sister companies were involved in last-mile fuel distribution in Singapore.

Chua handled finance and sales, while Ng was in charge of operations.

The men sourced cheaper diesel from Malaysia and brought it into Singapore without declaring the imports or obtaining the required Cargo Clearance Permits. The diesel was then sold to customers in Singapore.

The fuel was bought from suppliers’ terminals in Pengerang, Johor. A vessel transported it into Singapore waters before transferring it to smaller vessels at Selat Pauh Petroleum Anchorage.

The diesel was later taken to Penjuru Terminal and transferred to tanker trucks for delivery. Ng coordinated the vessel and truck schedules, along with the fuel collection and transfers.

Additional S$2.5 million in duty and GST avoided

The court also considered 16 other charges during sentencing.

These included six charges involving fraudulent duty evasion and 10 involving fraudulent GST evasion. Together, the duty and GST avoided in those charges amounted to about S$2.5 million.

Singapore Customs uncovered the scheme after receiving information and carrying out an investigation.

The case shows how customs offences can involve large sums when undeclared goods move through several stages before reaching customers.

Under the Customs Act, anyone convicted of fraudulently evading duty or GST can face a fine of up to 20 times the amount avoided. They can also be jailed for up to 12 months.

Singapore Customs said it will continue to enforce customs rules and protect public revenue.

There is little mystery about the basic lesson here: importing goods into Singapore comes with rules, and fuel is no exception. Proper declarations and permits are part of doing business lawfully.