David Thomas: “The integrated sourcing initiative, or the ISI, the products on this list currently have no duty or restrictions when…”

“The integrated sourcing initiative, or the ISI, the products on this list currently have no duty or restrictions when they enter the United States, regardless of where they come from or what country they pass through. The Singapore agreement identifies these goods and deems them to be of Singaporean origin for certain carefully delineated, limited purposes when they do move through Singapore for the administrative convenience of businesses and our own Customs Service. However, they are still considered of third-country origin for purposes of applying the global safeguard. Many people are alarmed by, I think, the word 'transshipment,' because they think it would be an illegal movement or smuggling of goods. But that is simply not true here. These are legal goods that under current law can enter the U.S. without restriction. In this case, the Chinese goods on the ISI list could come directly to the United States without duty or restriction currently. So what difference does it make if it goes through Singapore or any number of other countries along the way?”