Scaling Your Import/Export Business to the U.S.
Why the U.S. Is the World’s Most Powerful Trade Market
The United States is considered one of the largest markets in global trade. Why? It has a large, diverse economy with many different industries and high export capabilities in goods and services. The U.S. import/export regulations are transparent. This allows organisations and entrepreneurs to easily expand in the U.S., as it has a stable economy, making it a safe and reliable place.
The United States has high consumer demand in all industries. Consumers and businesses spend a significant amount on imported products in the U.S., which opens the door to global trade. It creates a predictable environment for cross-border transactions.
Before expanding into the U.S. market, every businessman and entrepreneur should ask themselves one question. Why should we expand our business in U.S.? The main reasons for it are:
- A stable and reliable legal system
- Streamlined setup and operations
- Access to global supply chains
A Stable and Reliable Legal System
U.S. markets are stable because of its legal system. Their legal system is clear, consistent, and applies the law fairly to everyone. Foreign companies that are involved in complex cross-border transactions can worry less about it because of the reliable legal system. This lowers the risk of doing business and protects investments and contracts.
Streamlined Setup and Operations
It is administratively easy for foreign entities to start and run a business in the U.S. Non-U.S. residents can form businesses without needing specific citizenship or residency. The U.S. makes it easier for struggling companies to restructure or shut down without chaos, reducing risk for investors and business owners. This strong legal environment and relatively low administrative hurdles make the U.S. highly attractive for Foreign Direct Investment (FDI).
Access to Global Supply Chains
The U.S. has over 20 Free Trade Agreements (FTAs) in addition to the USMCA agreement with Mexico and Canada. If an entrepreneur plans on setting up their company in the U.S., they can use these agreements to trade at a lower cost and with fewer restrictions. This helps businesses trade globally, making their business more efficient and profitable.
Understanding the import/export landscape
Understanding the U.S. Trade System Works
The U.S. has strict federal law and focuses on following well-organized procedures for importing and exporting goods. Everyone is bound to follow these laws and the United States carefully looks at how goods enter or leave the country.
Navigating U.S. Import/Export Regulations
Each product that enters U.S. is identified by using 10-digit codes. Globally, these are 6digits, the additional 4 digits are specifically for the U.S., making it easier for customs to know exactly what eachbproduct is and what rules apply. The two main classification systems are:
- For Imports:
The Harmonized Tariff System (HTS) classifies products that enter the U.S.. This code plays a crucial role as it dictates the exact duty rate (import tariffs).
- For Exports:
The Schedule B system classifies goods leaving the country.
For global trade, correct classification matters the most in import and export, regardless of the system that you use. To reduce the risk of wrong classification, importers can request a Binding Ruling from the U.S. Customs and Border Protection (CBP) before the goods are shipped.
The Customs Clearance Process
The legal process for moving imports through the U.S. border is managed by CBP and involves three main steps :
Entry/Port Filing: The Importer of Record (IOR) or their agent submits the necessary documentation to CBP’s online system. For goods arriving by ocean freight, the Import Security Filing (ISF) must be filed at least 24 hours before the vessel leaves its port of origin. This gives CBP advance notice to prioritize shipments for inspection.
Clearance: CBP reviews your documents, determines the correct Harmonized Tariff Schedule (HTS) code, and calculates any applicable import duties, which must be paid within 15 days to avoid fines.
Inspection: It is possible that custom brokers may select shipments randomly or hold them for inspection. They can further ask for compliance verification from Partner Government Agencies (PGAs) based on the product type.
Legal Requirements (Licenses, compliance, and customs basics)
As an entrepreneur, successfully entering U.S. market should be your aim that can be done by establishing a legal presence and following U.S. import/export regulations. This fundamental of trade compliance reduces risks of costly delays and secures your right to conduct cross-border transactions.
What you need to start trading legally
It is important to understand the necessary legal authorization before establishing a business in U.S. A businessman must understand legal entity and registration, licensing, and financial guarantees.
- Legal entity and registration
To know about the main structures of a legal entity, click here.
To be a legally recognized and operating company in the U.S., entrepreneurs need to complete two main steps:
- Foreign Qualification: A Certificate of Authority should be filed to register the company in the U.S.. This requires paying taxes and fees in both the state of formation and all states where the business is foreign qualified.
- EIN Application: The entity must apply for an Employer Identification Number (EIN) by submitting IRS Form SS-4. This is essential for tax reporting and customs purposes.
- Licensing and Financial Guarantees:
A crucial financial requirement for imports is securing a Customs Bond. This bond is a financial guarantee to the U.S. government that all applicable duties, taxes, and fees (import tariffs) will be paid.
Customs Documentation and Steps
To ship products internationally, an extensive documentation process is required to ensure smooth logistics for international trade and trade compliance. These documents include:
- Commercial Invoice
- Packing List
- Bill of Lading (BoL)
- Certificate of Origin (CoO)
Avoiding Delays with Proper Compliance
When businesses fail to meet customs requirements, documentation standards, or regulatory rules, the consequences can be immediate and expensive. Failure in trade compliance can cause many challenges for businesses, such as logistical delays resulting in higher cost, fines, and seizure of goods. These mistakes can include incorrect HS code, a missing certificate, or an incomplete invoice. Precautionary steps should be taken to avoid these challenges. Good compliance practices ensure that:
- goods pass through customs smoothly
- shipments avoid unnecessary holds
- business stays protected from fines and legal exposure
- logistics partners operate with clarity and consistency
Scale Your Import/Export Business With SBB
Businessmen and entrepreneurs expanding their businesses in U.S. for the first time face many challenges. SBB helps them in:
- simplifying processes
- strategic market insights
- compliance at every step
- support growth beyond launch
Startup Business Bureau helps you enter the U.S. market prepared, confident, and ready to grow. SBB provides the roadmap, support, and expertise to turn your U.S. business ambitions into reality.