Questions and Answers for Non-American Businesses Exporting to the United States
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Foreign companies looking to import consumer products into the United States via a third-party logistics (3PL) warehouse can do so, but they must adhere to certain rules and regulations. Here's a simplified guide to help you navigate the process.
Register a U.S. Entity or Partner with a U.S. Importer of Record
To comply with U.S. Customs and Border Protection (CBP) requirements, a foreign company must either establish a U.S. entity (such as a U.S. LLC) or partner with an appointed U.S. Importer of Record (IOR). The IOR is responsible for customs clearance, legal obligations, and maintaining compliance with applicable regulations.
Manage Customs Filings and Compliance
As the Importer of Record, you are responsible for filing all necessary customs documentation accurately, including customs declarations, payment of duties and taxes, and compliance with regulations such as those from the Consumer Product Safety Commission (CPSC) and the Food and Drug Administration (FDA) for consumer products.
Obtain and Submit Certificates of Compliance
For consumer products regulated by the CPSC, electronic certificates of compliance must be eFiled before or at entry to comply with the upcoming CPSC eFiling rule effective January 2025.
Meet Any Additional Product-Specific Regulatory Requirements
Depending on the goods, permits, licenses, or certificates from other agencies (such as the FDA for regulated items, or other Participating Government Agencies) may be required.
Work with the 3PL Warehouse for Logistics
The 3PL acts as a physical warehousing and distribution center, but the foreign company as Importer of Record remains responsible for customs compliance, tax obligations, and regulatory filings.
Appraisal of Goods
The CBP uses various methods to appraise the imported merchandise, including the transaction value, customs value, duties paid or payable, free inward processing, cost or freight, and computed value. If the transaction value does not apply, customs must use the next method, and so forth.
- If you purchased the goods from the manufacturer, your purchase price will be the basis of the appraisal of your shipment. If you got the goods from a middleman, you can use the "First Sale" rule to cut out the middleman's markup and use the manufacturer's price as your basis.
- If you manufactured the goods yourself, the CBP will use the price of the same goods as the basis for appraisal.
- If there is no identical merchandise, but there is something sufficiently similar, the customs will use the value of those similar goods.
- If all other methods fail, customs can determine a reasonable price.
Important Notes
- You do not need a special license to act as an importer into the US, but some items require a license or permit from various government agencies.
- Foreign businesses are allowed to import consumer products into the US via a 3PL warehouse in the US.
- A foreign company can be a Foreign Importer of Record. You are required to have an agent (e.g. Customs Broker like Flexport) in the state where the port of entry is located.
- Normally, you don't have to pay sales tax at the time of entry of goods into the US. Customers pay sales tax after the purchase.
- You need an "importer number," which can be your federal tax ID (EIN), your social security number, or a number assigned to you by the CBP.
Choosing the Appraisal Method
You are allowed to petition for the use of the computed value method instead of the deductive value method at the time the entry summary is filed. The use of the computed value method instead of the deductive value method can potentially yield better results for the importer.
The deductive value method has three options for determining the price: one for goods sold at or about the date of importation, another for goods sold after the date of importation but before the 90th day, and a third for goods not sold before the 90th day and further processed.
The transaction value of identical or similar merchandise, the deductive value method, and the computed value method are methods used by customs to appraise the imported merchandise.
In summary, the foreign company must either form a U.S. legal entity or partner with an appointed U.S. Importer of Record, maintain customs and regulatory compliance, submit all required documentation (such as CPSC certificates), and coordinate with the 3PL to import and warehouse the consumer products domestically. This ensures compliance with U.S. customs laws and federal regulations while using a third-party logistics provider for distribution.
- The foreign company, while partnering with a US Importer of Record (IOR) for customs clearance and regulatory compliance, must also manage the customs filings and ensure that all necessary documentation, including customs declarations, payment of duties and taxes, and certificates of compliance, are submitted accurately, especially for consumer products regulated by the Consumer Product Safety Commission (CPSC).
- In order to appraise the imported merchandise, the US Customs and Border Protection (CBP) uses various methods, such as the transaction value, customs value, duties paid or payable, free inward processing, cost or freight, and computed value. If the transaction value does not apply, customs must use the next method, and so forth. For instance, if the foreign company purchased the goods from the manufacturer, the purchase price will be the basis of the appraisal of the shipment. However, if the company manufactures the goods itself, the CBP will use the price of the same goods as the basis for appraisal.
