Major Exporter Scheme (MES) is designed to ease the cash flow of businesses that import and export goods substantially.
Under normal rules, the businesses have to pay GST upfront on importation and subsequently obtain a refund from IRAS after submission of their GST returns. This can create cash flow problems for businesses that export goods substantially as no GST is collected from the zero-rated supplies to set-off their initial cash outflow on importation.
If you are under the MES, you can import non-dutiable goods with GST suspended. With effect from 1 Jul 2006, you can also enjoy GST suspension on goods removed from a Zero GST warehouse.
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