U.S. Importing and Exporting Beginners Guide

Conducting import and export operations in the United States opens exciting opportunities for you in global markets. Whether you aim to introduce unique products to the U.S. market or export high-quality American-made goods overseas, understanding the fundamentals of international trade is essential to your success.

This guide provides a clear and practical introduction for those new to import and export operations. We will systematically guide you through the core concepts, key regulatory requirements, and practical steps involved in import and export operations, helping you:

• Navigate customs requirements: Understand customs procedures to ensure smooth clearance of goods.
• Master the necessary documents: Identify the documents required for import and export to avoid delays caused by incomplete or inaccurate paperwork.
• Understand tariffs and fees: Learn how to calculate tariffs, taxes, and other related fees to estimate costs accurately.
• Comply with government regulations: Familiarize yourself with the U.S. government agencies responsible for regulating import and export activities to ensure your legal and compliant trade operations.

Whether you’re importing or exporting for the first time, this guide provides an intuitive roadmap to help your goods cross borders legally and efficiently. Let’s work together to make your international trade journey smooth and seamless!

What Is Import and Export?

Import and export are the foundation of global trade, exchanging goods and services across international borders. Importing means bringing goods or services from a foreign country into the domestic market, while exporting refers to selling domestic products to customers abroad. For businesses, imports and exports are key strategies for sourcing resources, expanding market reach, and engaging in the global economy.

Imports allow companies to access scarce products that are expensive to produce locally or unavailable in their home country. Examples include tropical fruits, industrial raw materials, and advanced technological equipment. By importing, businesses can meet local demand, diversify their product offerings, and stay competitive.

Exports involve selling goods or services produced domestically to international markets. This helps businesses broaden their customer base, generate additional revenue, and contribute to national economic growth. For industries with unique products or surplus production, exporting is a powerful way to boost output and strengthen brand presence abroad.

Important Considerations for Starting an Import and Export Business

Launching an import/export business can be profitable, but it requires careful planning and a solid understanding of global trade dynamics. Here are some key factors to consider before entering the international marketplace:

• Market Research: A deep understanding of your target market is critical. This includes knowing local regulations, consumer preferences, cultural expectations, the competitive landscape, and customs procedures. Solid research helps you identify the right opportunities and avoid costly missteps.
• Product Selection: Choose products that are not only profitable but also in demand in your target market: research market trends, supply gaps, and seasonal demand patterns. A well-chosen product is the cornerstone of a successful import/export operation.
• Logistics and Supply Chain Management: An efficient and reliable setup is essential. This involves selecting trusted carriers, understanding shipping options, managing delivery timelines, and controlling transportation costs. Supply chain disruptions can seriously affect profitability, so proactive planning is key.
• Customs Compliance and Regulations: Familiarize yourself with relevant import and export regulations, including applicable tariffs, taxes, licensing requirements, and documentation. Mistakes in customs paperwork can lead to delays, fines, or even seizure of goods.
• Cost Management: Track all expenses closely—product sourcing, shipping, insurance, customs duties, warehousing, etc. Understanding your full cost structure helps you set competitive pricing and maintain healthy profit margins.
• Risk Management: International trade carries various risks, such as currency fluctuations, trade restrictions, political instability, and transportation issues. Have strategies in place to manage these risks, such as using forward contracts, purchasing insurance, or diversifying supplier and customer bases.

Explaining HS Codes, HTS Codes, and Schedule B Numbers

1. HS Code

The Harmonized System (HS) code is a globally standardized commodity classification system developed by the World Customs Organization (WCO). It uses a six-digit numerical format to categorize goods based on their nature and function, serving as the universal “language” of international trade. The code structure includes:

• The first two digits identify the chapter
• The next two digits identify the heading
• The final two digits identify the subheading

While the first six digits are used consistently across countries, individual nations often add additional digits to create specific classifications tailored to their regulatory and tariff needs.

2. HTS Code

The Harmonized Tariff Schedule (HTS) code is the United States’ system for classifying imported goods. It builds on the international HS system by expanding the code to 10 digits—the first six matching the global HS code, and the final four specific to U.S. tariff rates, regulatory requirements, and customs controls.

The U.S. Customs and Border Protection (CBP) uses HTS codes to determine applicable duty rates and to compile import statistics. The official publication of this system is known as the HTSUS.

3. Schedule B Number

The Schedule B number is the United States’ classification system for exported goods. Like the HTS, it’s based on the international HS code and extended to 10 digits. While the first six digits often mirror the HTS code, the final digits differ and are tailored for U.S. export tracking.

Managed by the U.S. Census Bureau, Schedule B codes are primarily used for collecting export statistics and completing customs documentation. Exporters use this system when filing Electronic Export Information (EEI) through the Automated Export System (AES).

Which U.S. Government Agencies Regulate Imports and Exports?

International trade is a complex area, and numerous U.S. government agencies regulate the import and export of goods, depending on the product’s nature, origin, and destination.

Customs and Border Protection (CBP)

Customs and Border Protection (CBP) is the primary U.S. agency overseeing the import and export process. CBP ensures that all goods entering the country comply with legal requirements and customs regulations. The agency is in charge of collecting import duties and tariffs and managing the essential documentation needed for clearing goods through customs.
In addition to these core functions, CBP enforces regulations on behalf of 47 other federal agencies, making it a key player in safeguarding the nation’s borders and facilitating lawful trade. For new importers, understanding CBP’s role and procedures is crucial. The CBP website offers valuable resources and tips to help newcomers navigate the complexities of importing and exporting smoothly and efficiently.

The Food and Drug Administration (FDA)

The Food and Drug Administration (FDA) is responsible for ensuring the safety of products intended for both human and animal use. The agency oversees various goods, including food, medical devices, radiation-emitting electronic products, animal feed, tobacco, and cosmetics. Because of the variety of products it regulates, FDA requirements can vary depending on the specific product. Importers should consult the FDA’s website for detailed guidance tailored to their shipments.

Beyond managing imports, the FDA also regulates exports of products under its jurisdiction. This is crucial since U.S. trading partners often have their import standards and may require certifications for certain items, particularly those governed by the Federal Food, Drug, and Cosmetic Act (FD&C Act). The FDA ensures that U.S. exports meet these international standards, helping promote smooth and compliant trade relationships.

The Environmental Protection Agency (EPA)

The U.S. Environmental Protection Agency (EPA) oversees the import and export of products that may pose environmental risks, ensuring they comply with environmental standards and minimize ecological impact. The EPA’s regulatory scope covers key categories such as pesticides and related equipment, ozone-depleting substances, chemicals, vehicle and engine fuels, and waste management. Additionally, the agency regulates certain products with special requirements, including architectural paints, personal care and cleaning products, and pipe fittings.

Importers and exporters must also comply with the EPA’s Greenhouse Gas Reporting Program (GHGRP). This program applies to coal-based liquid fuels, petroleum products, industrial gases, carbon dioxide, and fluorinated greenhouse gases found in pre-charged equipment or closed-cell foam. Companies that import or export these products in quantities equal to or exceeding 25,000 metric tons of carbon dioxide equivalent must submit a report to the GHGRP.

Centers for Disease Control and Prevention (CDC)

The Centers for Disease Control and Prevention (CDC) primarily regulates the importation of animals, biological materials, and human remains intended for burial, entombment, or cremation. CDC rules vary depending on the type of animal and the country of origin. For example, dogs entering the U.S. must be healthy and meet certain criteria. Still, dogs from countries with a high risk of rabies or other infectious diseases may be subject to quarantine and limited entry points.

Suppose you plan to import biological materials that could potentially cause infectious diseases in humans. In that case, you must participate in the CDC’s Import Permit Program (IPP), which controls the safe handling of such materials.

The CDC also imposes specific requirements for importing human remains, which depend on factors such as the purpose of importation, whether the body has been embalmed or cremated, and if the individual died from a communicable disease requiring quarantine.

Because CDC-regulated goods often face strict rules, it is highly advisable to consult with a customs expert before shipping to ensure compliance and avoid costly delays.

Animal and Plant Health Inspection Service (APHIS)

APHIS, a branch of the U.S. Department of Agriculture (USDA), performs a similar role to the CDC in terms of animal imports and exports. They establish certain regulations regarding animals imported for commercial sale, such as minimum age for entry and ensuring the animals are examined and vaccinated. 

Like the CDC, APHIS also sets restrictions on animals from regions with health issues. The service also ensures that imported wool, cashmere, and other animal byproducts meet its requirements.

The International Trade Administration (ITA)

The International Trade Administration (ITA) plays a key role in ensuring compliance with U.S. trade laws. Much of this responsibility is carried out by the Bureau of Industry and Security (BIS), which oversees export regulations. BIS administers two main export control programs:

• Export Administration Regulations (EAR): These regulate items with military applications or “dual-use” items with military and civilian purposes.
• The International Traffic in Arms Regulations (ITAR) govern products specifically designed for military use.

Importers and exporters dealing with these controlled goods must register with the Directorate of Defense Trade Controls (DDTC). Trading without proper registration is illegal.

The ITA also advises exporters to thoroughly research the destination country’s import regulations, as many nations have their own rules to ensure imported products meet safety and compliance standards. Following these guidelines helps facilitate smooth and lawful international trade.

What Documents Do I Need to Import or Export?

Proper documentation is critical for smooth customs clearance and compliance. Missing or incorrect documents can lead to delays, penalties, and even seizure of goods.

According to U.S. Customs and Border Protection (CBP), importers generally do not need a license to bring goods into the country. However, certain products may require permits or licenses from other government agencies, depending on their nature. CBP acts as the enforcing authority on behalf of these agencies to ensure all regulations are met. Common goods requiring special permits or licenses include firearms, pharmaceuticals, hazardous materials, and biological samples. While CBP oversees exports, the export process typically requires fewer permits and is usually faster. Even if no license or permit is needed for your shipment, you must still complete CBP documentation to ensure proper customs clearance.

Do I Need a License to Import or Export?

Proper documentation is the backbone of smooth international trade. Missing, incomplete, or inaccurate documents are among the leading causes of customs delays, penalties, and cargo seizure. While the Bill of Lading (BoL) and Commercial Invoice with Packing List are foundational, several other documents are frequently required depending on the nature of the goods and the specific trade lanes.

Essential Core Documents:

Bill of Lading (B/L) / Air Waybill (AWB):

• Purpose: This is the contract of carriage between the shipper (exporter) and the carrier. It serves three main functions:
  • Receipt of Goods: Acknowledges that the carrier has received the goods in good condition.
  • Contract of Carriage: Outlines the terms and conditions of the transportation.
  • Document of Title (for B/L): For ocean freight, the original Bill of Lading can act as a document of title, meaning whoever holds the original can claim the goods. (AWBs are generally not negotiable documents of title.)
• Key Details: Description, quantity, and weight of the goods; name and address of the consignor (shipper) and consignee (recipient); terms of sale (Incoterms); carrier’s information; routing; and, often, freight charges.

Commercial Invoice:

• Purpose: The primary document for customs valuation and description. It’s a bill for the goods from the seller to the buyer.
  • Key Details: Names and addresses of the seller (exporter) and buyer (importer).
  • Invoice number and date.
  • Detailed description of the goods (including HS/HTS/Schedule B codes).
  • Quantity and unit price of each item.
  • Total value of the goods and currency.
  • Terms of sale (Incoterms) specify who pays for what.
  • Country of origin of the goods.
  • Payment terms.

Packing List:

• Purpose: Provides a detailed summary of the shipment’s contents, helping customs officials, carriers, and consignees verify the cargo. It’s often used with the commercial invoice but provides more physical detail.
  • Key Details: Description of the goods (often with their HS/HTS/Schedule B codes).
  • Quantity and weight (both gross and net) per package.
  • Number and type of packages (e.g., 10 cartons, five pallets).
  • Dimensions of packages.
  • Identifying marks or numbers on the cargo (e.g., carton numbers).
  • The carrier’s ship name or flight number.
  • Date of export.

Note: Some information appears intentionally on the Commercial Invoice and Packing List to ensure consistency and accuracy. Any discrepancies could raise red flags with Customs and Border Protection (CBP) and cause delays.

Additional Common Documents:

For Imports (into the U.S.):

1. Customs Bond:
   • Purpose: A financial guarantee to CBP that the importer will pay all duties, taxes, and fees, and comply with all import laws.
   • Requirement: Required for most commercial imports valued over $2,500, and for certain regulated commodities regardless of value.
   • Types: Can be a single entry bond (for one shipment) or a continuous bond (for multiple shipments over a period).
2. Entry Summary (CBP Form 7501):
   • Purpose: The official document filed with CBP by the importer or their customs broker to provide detailed information about the imported goods for duty assessment and statistical purposes.
   • Content: Includes HTS codes, values, duty rates, country of origin, and other relevant import data.
3. Importer Security Filing (ISF) – “10+2 Rule”:
   • Purpose: Specifically for ocean cargo, this filing is required by CBP before the cargo is loaded onto a vessel destined for the U.S. It provides advance data for security vetting.
   • Details: 10 data elements are required from the importer and two from the carrier.
4. Proof of Origin / Certificate of Origin:
   • Purpose: Confirms the country where the goods were manufactured or produced. This is crucial for:
     • Determining applicable duty rates (e.g., MFN, preferential, or punitive tariffs).
     • Claiming preferential duty treatment under Free Trade Agreements (FTAs) (e.g., USMCA Certificate of Origin).
     • Complying with specific import regulations or quotas.
5. Other Agency Permits/Licenses/Certificates:
   • Purpose: Specific authorizations from other U.S. government agencies are mandatory for highly regulated goods.
     • Examples:FDA: Prior Notice for food, Medical Device listing, Drug registration.
     • USDA/APHIS: Phytosanitary certificates for plants, animal veterinary certificates, and import permits.
     • EPA: Declarations for vehicles/engines, import notifications for certain chemicals.
     • ATF: Import permits for firearms.
     • DOT (Department of Transportation): Safety standards compliance for vehicles.

For Exports (from the U.S.):

1. Shipper’s Letter of Instructions (SLI):
   • Purpose: Provided by the exporter to their freight forwarder, giving detailed instructions for handling the shipment, routing, documentation, and critical export control information.
   • Content: Often includes ECCN (Export Control Classification Number), licensing information, and specific handling instructions.
2. Electronic Export Information (EEI) Filing:
   • Purpose: Required by the U.S. Census Bureau for most exports valued over $2,500 per Schedule B number or for any export requiring a license, regardless of value. It’s filed through the Automated Export System (AES).
   • Content: Provides statistical data on U.S. exports and is crucial for export control enforcement.
3. Export License:
   • Purpose: If the goods, destination, end-user, or end-use are controlled (e.g., dual-use items, military items, sanctioned destinations), an export license from BIS (Commerce) or DDTC (State) may be required.
   • Obtaining: Requires an application process with the relevant agency.
4. Dangerous Goods Declaration (DGD):
   • Purpose: Required for shipments containing hazardous materials, detailing the type of dangerous goods, their classification, quantity, and packaging to ensure safe transportation.
   • Compliance: Must adhere to international regulations (e.g., IATA for air freight, IMO for ocean freight).
5. Letter of Credit (L/C) or other Payment Documents:
   • Purpose: While not customs documents, these are critical for ensuring payment, especially in international transactions. Banks may require specific shipping documents for payment release.

Do I Have to Pay Tariffs on Imports and Exports?

Tariffs are taxes imposed on goods as they cross international borders, and whether you have to pay them depends largely on the type of goods, their origin, and the destination country.

On Imports:

When entering the United States, most imported goods are subject to tariffs or customs duties. The amount you pay depends on the product’s classification under the Harmonized Tariff Schedule (HTS), its declared value, and any applicable trade agreements or exemptions. Some products may be duty-free, while others carry significant tariffs. Importers are responsible for paying these fees before their goods clear customs.

On Exports:

Generally, the U.S. does not impose tariffs on exported goods. However, certain products may require export licenses or permits, especially if they fall under export control regulations such as military or dual-use items. While tariffs on exports are rare, exporters should be aware of any restrictions or fees that may apply in the destination country.