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?
Just because goods are exported to the US from Singapore (e.g., shipped from Singapore to the US) does not make them of Singapore Origin.
For the US to consider an import to be of Singapore Origin and therefore eligible for the 10% baseline tariff, it must meet the US’ country of origin requirements.
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 textile goods, companies 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”.
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
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?
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?
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?
