Can I export goods to the US under the US-Singapore FTA (USSFTA) Integrated Sourcing Initiative (ISI) to be exempt from the 10% baseline tariff?
No, the ISI does not provide preferential tariff treatment or exempt goods exported to the US from tariffs.
The ISI reduces importers’ paperwork burden and cuts processing costs for certain information technology (IT) goods and medical devices listed in Annex 3B of the USSFTA.
The US requires that ISI goods imported into the US be marked with their “true country of origin”. According to the US Code of Federal Regulations Title 19 (Customs Duties) Part 134.1 (Definitions), “country of origin” means the “country of manufacture, production, or growth of any article of foreign origin entering the United States.”
When a good does not come entirely from a single country, the origin of the good is determined using the “substantial transformation” criterion. This means that the good underwent a fundamental change in form, appearance, nature, or character. This fundamental change normally occurs as result of processing or manufacturing in the country claiming origin.
Minimal processing or assembly operations do not usually result in a substantial transformation. This applies to all non-textile goods. For more information, including the rules for textiles, you may refer to the US Customs and Border Protection’s (CBP’s) Informed Compliance Publication, “What Every Member of the Trade Community Should Know About: Rules of Origin”.
You may also wish to apply to the US CBP for an advance ruling to determine that the good qualifies for the ISI and/or to determine its “true country of origin” and the applicable tariff, before it is exported to the US.
The US CBP may conduct verification of origin checks by requesting information directly from manufacturers or exporters, or through the US importer. Singapore Customs may also facilitate visits to Singapore-based manufacturers or exporters, if requested by US CBP, for this purpose.
The Singapore Government expects all businesses operating in Singapore to take into account other countries’ regulations, including import requirements, where relevant to their international business activities. These activities should be conducted transparently. We do not condone businesses deliberately using their association with Singapore to circumvent tariffs.
Singapore takes firm and decisive action against companies and individuals that violate our laws. We are committed to maintaining the integrity of our business environment.
Related questions
Can companies producing goods in other countries export these goods to Singapore first, and then from Singapore to the US, to qualify for the 10% baseline tariff?
How will the US determine if a good is of Singapore Origin to qualify for the 10% baseline tariff? How is Regional Value Content (RVC) determined, especially for operations like final assembly?
How do I qualify for preferential tariff treatment under the US-Singapore Free Trade Agreement (USSFTA) for my exports to the US?
Are goods eligible for preferential tariff treatment under the US-Singapore Free Trade Agreement (USSFTA) exempted from the US 10% baseline tariff on imports from Singapore? Are there any other FTAs that Singapore exporters can tap on for an exemption?
