How to Start an Import and Export Business in the United States

The United States is one of the largest markets for international trade, and starting an import and export business can open the doors to significant business opportunities. However, to successfully start and operate in this sector, it's crucial to comply with all regulations and obtain the necessary licenses. From choosing the right business structure to obtaining permits and complying with customs regulations, each step is key to avoiding issues and taking full advantage of global trade opportunities.

In this blog, we explain how to start an import and export business in the U.S., the key steps, and how to comply with local and international laws.

1. Choose the Right Business Structure

The first step to starting an import and export business in the United States is selecting the right business structure. The most common options are the LLC (Limited Liability Company) and Corporation.

LLC (Limited Liability Company):

• Personal Asset Protection: The LLC protects your personal assets from any debts or legal liabilities of the company.
• Tax Flexibility: You can choose to be taxed as a disregarded entity, partnership, or corporation, depending on your needs.

Corporation (C-Corp or S-Corp):

• C-Corp: A C-Corp is ideal if you plan to attract investors or issue shares but is subject to double taxation.
• S-Corp: If you prefer to avoid double taxation, an S-Corp might be a better option, but it has restrictions on who can be a shareholder.

We recommend creating an LLC, as it is the most flexible and popular option for entrepreneurs starting in international trade, allowing them to protect their personal assets and providing more tax options.

2. Obtain the Necessary Licenses and Permits

To operate an import and export business in the United States, it's essential to obtain the necessary licenses and permits from federal, state, and local authorities. Licenses vary depending on the products you import or export.

Import License:

‍If you plan to import products into the U.S., you’ll need an import license, generally issued by U.S. Customs and Border Protection (CBP).

• Specific Requirements: Certain products, such as food, pharmaceuticals, or chemicals, require additional permits from agencies like the FDA (Food and Drug Administration) or the Department of Agriculture.
• Importer Identification Number (Importer ID): You also need an Importer ID to register imports with CBP. You can obtain this using your EIN (Employer Identification Number) or by requesting a unique number from CBP.

Export License:

‍Some products, like advanced technology, weapons, or dual-use goods, require an export license issued by the Bureau of Industry and Security (BIS), part of the U.S. Department of Commerce. The Export Administration Regulations (EAR) govern most exports and specify which products need a license.

Additional Permits:

‍Depending on the type of products you import or export, you may also need to comply with additional regulations from other government agencies such as:

• USDA for agricultural products.
• EPA for environmentally related products.
• ATF for alcohol, tobacco, and firearms.

3. Register with the Automated Export System (AES)

The Automated Export System (AES) is the electronic system businesses use to file export information with the U.S. Census Bureau and CBP. If you plan to export products worth more than $2,500, you’ll need to register your shipments through AES.

When is AES Registration Required?

• Shipment Value: If the value of your shipment exceeds $2,500.
• Special Licenses: If your product requires an export license.
• Restricted Destinations: Some countries have additional restrictions, so it's important to ensure you comply with U.S. State Department regulations.

4. Comply with Customs Regulations

International trade involves complying with customs regulations to import and export products. Here are some key aspects to consider:

Tariffs and Customs Fees:

‍When importing products into the U.S., you may need to pay tariffs and customs fees. Tariffs vary depending on the type of product and its country of origin. To determine the applicable tariffs, you can consult the U.S. Harmonized Tariff Schedule (HTS), which classifies all imported products.

Required Documentation:

• Commercial Invoice: This should include product details, value, and country of origin.
• Certificates of Origin: Required if your country of origin has a free trade agreement with the U.S., like the USMCA (United States-Mexico-Canada Agreement).
• Bill of Lading: A document issued by the transportation company certifying the shipment of goods.

5. Find Reliable Logistics Partners and Suppliers

A key part of the success of your import and export business is having reliable logistics partners. From freight forwarders to transport companies, having a trustworthy team ensures your products reach their destination safely and efficiently.

Freight Forwarders:

‍A freight forwarder is a company that organizes international shipments on your behalf. They help coordinate sea, air, or land transportation and ensure all documentation is in order to comply with customs regulations.

Warehousing and Distribution:

‍If you plan to import large volumes of products, you’ll need a warehouse to manage your inventory. Consider solutions like:

• Owned or rented warehouses.
• Fulfillment services to handle inventory, packaging, and shipping directly to customers.

6. Comply with International Trade Agreements

The U.S. has free trade agreements with several countries, which can reduce or eliminate tariffs on certain products. Some of the most relevant agreements include:

• USMCA (United States-Mexico-Canada Agreement).
• Free trade agreement with the European Union.
• Bilateral agreements with countries in Asia and Latin America.

How Can We Help You Start Your Import and Export Business in the U.S.?

We have a team of experts ready to help you establish and manage your import and export business in the United States. From registering your LLC or Corporation to obtaining the necessary licenses, permits, and complying with customs regulations, we guide you through every step of the process.

Our services include:

• Business registration in the U.S.: We help you choose the right business structure and register your company in your chosen state.
• Licenses and permits advisory: We handle the process of obtaining the necessary import and export licenses for your business.
• Ongoing Legal and TaxSupport: We assit you with legal and tax compliance to ensure your business operates in USA.

Contact us or a free consultation and start your international trade journey with the support of our experts.