Exporting To US: What You Need To Know

The United States is a dream market for many exporters as selling goods in large markets brings a vast growth opportunity for their business. The ‘American dream’ for exporters is supported by the fact that the US has the largest economy globally and represents over 25% of the world’s GDP. However, entering the US market is not everyone’s cup of tea as the country’s international market policy is flooded with different tariffs, taxes, requirements, and regulations. In the following paragraphs, we will discuss some important insights related to exporting goods to the US. Apart from that, we will also find answers to some common questions like what is an ECCN number.

Partner Entity In The US

The best way to expand your business to the US market is by having a trustworthy business partner in the country who has experience in bringing imports. Your US-based partner can help you with instructions and advice regarding:

• Invoicing
• Marking
• Packaging
• Stocking
• Labelling

Your partner entity can also take care of the checks with customs and government authorities as your goods arrive at the US ports, and they can help you with queries like how to find ECCN numbers. To keep the interests of your company, it is necessary to perform thorough checks on your draft contracts with your US-based partner for a business relationship.

Market Research

It is an important fact to note that the United States has a federal system, and hence, it is not a single national market like the other countries. You can start by identifying your target state where you intend to sell your goods. You can also refer to the sales history of each product and use Data Intelligence tools to generate future sales projections.

Stay Up To Date

To ensure that your goods get a fast clearance from US customs, it is better to keep yourself updated with the current tariffs, regulations, and instructions. Many exporters have to deal with delays due to improper and incomplete invoices, details of products. Moreover, it is better to be aware of the provisions related to items in food, drugs, cosmetics, and alcohol categories. You will need the following documents to accompany your goods to the US, and as a seller, then it will be your responsibility to furnish the first three:

• Packing List
• Commercial Invoice
• Bill of lading
• Binding ruling
• Air waybill
• Customs bond
• Cargo release entry
• Customs import declaration
• Import security filing
• Manifest for motor carrier, vessel, or aircraft

What Is An ECCN Number?

An ECCN is an alphanumeric set of five characters used by the commerce control list to designate the dual-use items for export control.

Familiarity With Incoterms

Before beginning your export, it is quite important to familiarise yourself with International Commercial Terms or simply Incoterms. Apart from that, you also need to be familiar with simple steps like how to find ECCN numbers. Three of the most popular arrangements under the incoterms are:

1. CPT (Carrier Paid To)

In this arrangement, the seller is responsible for paying for the freight ship that will sail the import to the country, i.e., the US. Once the goods reach the carrier, the responsibility to ship the goods to their destination shifts on the buyer.

2. EXW (Ex Works)

This arrangement places responsibility on the buyer to manage the shipment from the warehouse to its destination.

3. FCA (Free Carrier)

The responsibility of arrangement rests with the seller, right from the shipping stage till goods arrive at the carrier’s terminal for export.

Is It Hard To Export To The US?

All export players look forward to expanding their businesses to bustling economies like the USA. Looking at the level of tussle and rush in the international markets, it is essential to enter the arena with foolproof preparation. Also Read: A Complete Guide for Importing into the US