Can I export goods to the US under the USSFTA’s Integrated Sourcing Initiative (ISI) to be exempt from the 12.5% Section 301 tariff?
Updated as of 20 August 2026.
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 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 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. For more information, visit the US CBP’s website on rulings.
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.
Topics:
TariffsRelated questions
How is preferential tariff treatment accorded under the USSFTA for my exports to the US?
Does the US’ 12.5% Section 301 tariff change how goods may qualify for preferential tariff treatment under the USSFTA?
How will the US determine if a good is of Singapore Origin and subject to the US’ 12.5% Section 301 tariff? How is Regional Value Content (RVC) determined, especially for operations like final assembly?
Are there any changes to how the US will determine if a good is of Singapore origin for the purposes of the US’ implementation of the Section 301 tariff?
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