Did you know that imported goods in America increased to over $264.8 billion this 2022? To stay competitive, companies are importing goods from other countries.
While importing goods to the USA is a challenging task, it’s one good way to grow your business. You only need to know a few steps before selling consumer goods imports.
Are you ready to start importing goods? Here are the five steps you need to know on imported goods.
1. Research and Select Which Products to Import
Before you start importing consumer goods, you need to do extensive research. Small businesses need to decide what products or services they need to sell. When you have decided on that, choosing what to import becomes easier.
You don’t need to limit yourself to the products you want to consider. Although it can be tempting to choose a product you like, doing so can be a huge mistake.
Make sure that you do proper market research. That way, you can ensure that the product is in-demand to your target audience. Always consider the following whenever you choose which product to import.
- Market demand
- Demand duration (long-term or short-term)
- Availability and variety of related products
- Sustainability of importing goods
Aside from that, you also have to research the foreign policies on importation. Importing high-regulated products is challenging, and there is little room for error.
When you’re still unsure of what goods to import, you can ask a Licensed Customs Broker to help you. A customs broker has broad knowledge and experience on products and their regulations.
There are also channels and websites where you can check for in-demand products. But before you begin importing goods, always do a test run. Work with a sample size first to see its demand on the market.
2. Look for a Reliable Supplier
After figuring out your market and product of choice, you can now look for a reliable supplier. There are many ways you can get a supplier.
Some businesses consider local manufacturers in foreign markets. But if you choose to work with a foreign supplier, you may go through a couple more challenges. It includes language barriers, cultural customs, and time zone differences.
One of the easiest ways to find a supplier is to use well-known online marketplaces. These online sites can offer you access to many suppliers worldwide. More than that, it also helps you avoid the problems of looking for private suppliers by yourself.
Most small businesses use platforms like Alibaba, TradeKey, and GlobalSources. But you can click for more supplier options to your consumer goods imports here.
While there are many benefits of using online marketplaces, there are still drawbacks. For example, these platforms allow scammers to hide easier. Because of that, it’s crucial to check for supplier verification.
Some marketplaces have third-party inspectors to verify the companies on their platforms. You can check on these platforms to ensure that you get a legitimate supplier.
3. Study the CBP Policies on Importing Goods
To prevent any issues in importing, you should study the CBP policies. Customs and Border Protection is in charge of all consumer goods imports. They recommend that businesses familiarize all the CBP policies and procedures.
That way, you won’t have any problems when you import goods. Not only that but there are also entry requirements that you need to be aware of in certain products.
CBP doesn’t need you to have a license to import. But other agencies want you to get a license or certification. Although, this will still depend on your imported goods.
4. Register Your Business and Get the Import Licenses You Need
The next step you need is to register your business and get the licenses you need. When you register your business, it becomes a legal entity. Doing this allows you to have legal and tax benefits.
Here in America, you can register your business in a few simple steps. You can register through your state or local government. Not to mention, you only need to fill in details like the name of your business, its location, and DBA.
Once you register your business, you also have to apply for a federal tax ID. Keep in mind that the tax on imported goods is different from local products.
Import licenses will depend on your chosen product. Before proceeding to the next part, get your permit. You can work with a customs broker for your import licenses if you want.
Nonetheless, any product that will enter the country should have a CBP entry form. Importers need to file the document within 15 calendar days of their arrival.
5. Be a Registered Importer and Secure a Customs Bond
One of the last legal steps you need before importing goods is to become a registered importer. The CBP needs this to know who handles import compliance. You can finish this step through the CBP.
Apart from the registration, importers also need a customs bond. They are available through a surety company or a licensed broker.
Customs bonds ensure that you make the proper payments for your customs duties and taxes. It allows you to have a smoother trade.
A custom bond also helps in reducing the chances of stranded goods at the port. It often happens when your imported goods are unable to pass through Customs. Delays like this can cost a lot, especially for extra inspection and storage.
There are also two types of customs bonds that you need to know. They are the annual and the single-entry bonds.
Annual bonds are the most common and cost-effective. They cover all your imports for the entire year.
Single-entry bonds are the ones importers use when they only have less than ten imports a year. These bonds often cost 5% of the shipment’s value.
Know More About Importing Goods Now
Importing goods from outside of the country is a challenging but profitable venture. But before you start, you need to know what you should do to enter imported goods into the country.
Following these steps will ensure a smoother and faster process. It will also lower the chances of any mistakes. Did this rough guide on importation help you? Look