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Imports and exports form the basis of all international trade. These transactions make it possible to start global ecommerce businesses and ship goods around the world.
Key Takeaways
Our guide below covers the basics of importing and exporting, like the primary government agencies involved, whether you need a license, and how to get started.
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Imports and exports as a concept are simple to understand. Imports are goods entered into the country from abroad, whereas exports are shipped out of the country to another nation or territory.
Importing can give countries access to goods that they normally would not be able to produce, either due to lack of resources or prohibitive manufacturing prices. You’ll not only receive goods you need or want, you’ll also be forming a positive trade relationship with the country from which you source those goods.
The same goes for exports. By exporting goods that your country specializes in or has in abundance, you can provide them to another country that needs them, profiting in the process.
The USA imports and exports a wide variety of goods and raw materials, with the top performing commodities in each category for June 2024 listed in the tables below.
Of course, these barely scratch the surface of the thousands of different products that get traded internationally on a yearly basis. In order to correctly classify these goods for purposes of identification and taxation, the United States has two systems in place: one for imports and one for exports.
The Harmonized Tariff Schedule (HTS) is used by importers in the U.S. to identify the goods they’re importing and determine how much will be owed in duties and tariffs once the shipment arrives. Meanwhile, exporters use Schedule B numbers to identify goods they ship out of the U.S. Both of these systems are based on the Harmonized System (HS) of product classification.
Let’s take a closer look at each of these systems.
These are globally-recognized numbers that shippers around the world use when sending goods from one country to another. This helps to avoid confusion from linguistic barriers. These codes are separated into chapters, headings, and subheadings.
For example, musical instruments are covered under chapter 92 of the HS. In that chapter, wind instruments are under the subheading 9205, and brass wind instruments are denoted by the numerical suffix .10. This gives us the HS code 9205.10 for brass wind instruments.
HTS codes, created by the United States International Trade Commission (USITC), expand on HS codes to provide information about duty and tariff rates to U.S.-based importers. In fact, the first six digits of an HTS code are just the HS code itself. The numbers afterward are specific to the United States.
Looking back at our example for brass wind instruments, the full HTS code an importer would use would be 9205.10.0080 for items valued at over $10 each. This doesn’t just let customs officials know what’s in the shipment, it also gives the importer the duty rate they can expect to pay during the clearance process.
Related: What is the HTSUS?
Finally, shippers in the U.S. use these numbers to identify exported goods. Schedule B numbers are ten digits long and, while similar to HTS codes, aren’t the exact same thing.
An exporter would use the Schedule B number 9205.10.0000 to classify our brass wind instrument. There are only about 9,000 of these numbers compared to almost 20,000 in the HTS, and they’re created by the United States Census Bureau.
In the previous sections, we mentioned some government agencies involved in importing and exporting. However, certain goods require greater oversight and regulation, which leads to involvement from other government entities.
To help you understand how these agencies are involved in international commerce, let’s examine them in greater detail.
CBP oversees all general aspects of the import/export process, including:
In total, CBP enforces rules and regulations for 47 other government agencies.
It’s highly recommended that new importers familiarize themselves with all aspects of CBP and their involvement in both import and exports. You can even find tips for new importers on the CBP website.
The goal of this agency is to ensure the safety of products intended for animal and human use. The goods they regulate include:
Given the wide variety of goods they regulate, the FDA’s regulations vary from one product to another. You can consult their website for further importing requirements based on your particular shipment.
The FDA also regulates exports that fall under their jurisdiction. They do this because countries who are trading partners with the U.S. have their own guidelines for imports. For instance, foreign customers sometimes require a certification for products covered under the Federal Food, Drug, and Cosmetic Act (FD&C Act) The FDA ensures that our exports meet the standards of other countries.
The EPA monitors the foreign trade of products that may cause harm to the environment. The categories of products they regulate include:
The agency also regulates products that are considered to have “other requirements.” These include coatings used in architecture, products used for personal care/cleaning, and plumbing components. Just like the FDA, the EPA’s regulations differ depending on the product being imported.
Another regulation of the EPA that importers and exporters must follow is the Greenhouse Gas Reporting Program (GHGRP). This regulation applies to exporters and importers of the following products:
The specific requirements state that if someone exports or imports an equivalent of 25,000 metric tons of coal-based liquid fuels, petroleum products, industrial gasses, carbon dioxide, or fluorinated GHG, then it must be reported to the GHGRP.
The CDC mainly focuses on animal imports, biological materials, or the importation of human remains for burial, entombment, or cremation. CDC regulations differ depending on the animal and from what country the animal is coming from.
For example, dogs imported into the U.S. must appear to be healthy in order to be allowed entry, along with a few other requirements. However, a dog coming from a country that has a high risk for rabies or other infectious diseases may face weeks of quarantine and limited points of entry to the U.S.
If you want to transport biological material, you will need to participate in the CDC’s Import Permit Program (IPP). The IPP regulates biological materials that could cause a human to become ill with an infectious disease.
The CDC has various requirements for the importation of a human body. The requirements change depending on the circumstances. These circumstances can range from:
Some of the most stringent rules for importers and exporters in the U.S. apply to goods regulated by the CDC. Given that fact, consulting with a customs expert prior to shipping these goods is strongly recommended.
Our Licensed Customs Brokers Can Personally Guide You.
APHIS, a branch of the U.S. Department of Agriculture (USDA) performs a similar role to the CDC when it comes to 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 coming from regions that have health issues. The service also ensures that imported wool, cashmere, and other animal byproducts meet its requirements.
One of the foremost duties of the ITA is to ensure that U.S. trade laws are not broken. These rules are enforced by the Bureau of Industry and Security (BIS) which plays a large role in the export process by administering laws and regulations regarding products leaving the country.
The primary responsibility of the BIS is to enforce two export control programs:
Importers and exporters of these goods must register with the Directorate of Defense Trade Controls (DDTC). It is illegal to trade in these items without doing so.
The ITA suggests that you research the country you plan on exporting your product to in order to ensure that all regulations are met. Many countries have their own import rules that must be followed so they know your product is safe.
According to CBP standards, an importer doesn’t need to have a license. However, other government agencies might require one, depending on what you bring into the country. CBP only acts as on behalf of these government agencies.
Common examples of goods and products that require licenses and/or permits for importing include:
CBP also plays a part in the export process. Some of the laws they follow are the same as other agencies. Exports don’t usually require permits or licenses, and the process is typically much shorter.
If you do not need a license or permit for an import, you will still have to complete CBP document forms.
There are many documents required for importing and exporting. However, there are two documents that you can count on needing for both. These are the bill of lading (BoL) and the commercial invoice/packing list.
The BoL contains important information regarding the shipped goods, such as:
The second document that both importers and exporters will need is the commercial invoice and packing list. These are similar pieces of paperwork, with the only real difference being that the packing list requires a more detailed summary of the goods. When you fill out these documents, you need to make sure that the information on each document matches.
The information that will need to be included on the commercial invoice includes:
For the packing list, you will have to include the following information regarding the goods that are being shipped:
You may have noticed that various bits of information are duplicated across these documents. This is by design, to ensure that information is being entered accurately for each party that reviews it. Discrepancies across these documents would be seen as suspicious by CBP.
There are many more documents used in the import/export process depending on what you plan on shipping, where you’re shipping it, and a variety of other circumstances. Make sure to familiarize yourself with all the documents needed for imports and exports.
Thinking of starting an import export business? If so, check out our article How to Start an Import Export Business: A Guide for Entrepreneurs.
You will need a customs bond under two circumstances.
The first is if you are importing commercial goods that have a value of over $2,500. The second circumstance is if the goods you are importing are regulated by another federal agency.
Related: How to Get a Customs Bond
When you import items into the U.S., you will likely have to pay a tariff on them. The CBP collects tariffs on behalf of the Department of Commerce or DOC.
The rates of tariffs can vary depending on what item you are importing and from what country it is coming from. Tariff rates are determined by an item’s HTSUS code — a 10-digit code used for tariff and product classification. Every internationally traded product falls under a specific HTS code which you can find by using an HTS code lookup tool.
This code will let you know the duty owed on a product depending on which country it’s being imported from and whether or not the U.S. has a free trade agreement (FTA) with said country. If there is an FTA in place, tariff rates will either be reduced or free. Otherwise, you’ll likely owe some form of duty on your import.
Be sure to research the goods you want to import to ensure that you’re using the correct HTS code and know the amount of duty you will owe on your import.
Worried about the Strict Regulations? Ask Our Experts.
Our 30 Minute Licensed Expert Consulting Will Personally Guide You.
Between all the government agencies and their regulations, it’s hard to know if you’re following the right steps when importing or exporting. This is where a customs broker can prove to be a valuable resource.
Here at USA Customs Clearance, we offer end-to-end customs brokerage for shipments being imported into the U.S. Our expertise means you can focus on your business while we ensure that your goods comply with import regulations and pass through customs quickly.
Our services also include:
If you need help with an import or export transaction, we’re here to help. Give us a call at (855) 912-0406 or submit a contact form online today!
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