10 Things Online Retailers Should Know about Import Tariffs and Customs

If you’re an online merchant looking to import goods into the United States, it’s important to be aware of the various tariffs and customs regulations that can impact your business. Failure to comply with these regulations can result in delays, fees, and even the seizure of your goods. In this blog post, we’ll outline 10 key things that online merchants should know about tariffs and customs for international imports into the US.

1. Tariffs are taxes imposed by a government on imported goods. The U.S. government may impose tariffs on certain products that are imported from other countries. These tariffs can vary in amount depending on the product and the country of origin. As an online merchant, it’s important to be aware of these tariffs as they can significantly impact the cost of importing goods into the United States.
2. The Harmonized Tariff Schedule (HTS) is used to classify goods imported into the United States. The HTS determines the rate of duty that will be charged on the product. This classification is based on the product’s characteristics, such as its material, intended use, and function.
3. The duty rate is determined by the product’s classification under the HTS, its value, and the country of origin. As an online merchant, it’s important to ensure that you understand the HTS classification of your products and the associated duty rate. This will allow you to accurately calculate the cost of importing your goods into the United States.
4. Merchants may be required to pay additional fees, such as merchandise processing fees, when importing goods into the United States. These fees are in addition to the duty rate and can vary depending on the value of the goods being imported.
5. Customs and Border Protection (CBP) is the agency responsible for enforcing U.S. import laws and regulations. CBP is responsible for inspecting goods and ensuring that they comply with U.S. regulations. As an online merchant, it’s important to be aware of the role that CBP plays in the import process and to ensure that your goods comply with all U.S. regulations.
6. Merchants should make sure they have the necessary paperwork, such as invoices and bills of lading, to clear their goods through customs. This paperwork is essential for proving the value and origin of your goods and ensuring that they comply with U.S. regulations.
7. Customs may inspect goods and packages, which can lead to delays in the shipment’s arrival. As an online merchant, it’s important to factor in the potential for delays when planning your shipments.
8. The U.S. government may impose sanctions on certain countries or products, which can impact the importation of goods from those countries. These sanctions can vary in severity and can include restrictions on trade or the imposition of tariffs.
9. The U.S. government may also impose antidumping and countervailing duties on certain products that are imported from other countries. These duties are designed to protect U.S. industries from foreign competition and can significantly increase the cost of importing goods into the United States.
10. It is important for merchants to stay up-to-date on changes to import laws and regulations, as these can have a significant impact on their business operations. As an online merchant, it’s important to keep abreast of any changes to U.S. import regulations and to adjust your business practices accordingly.

Importing goods into the United States can be a complex process, with a variety of tariffs and customs regulations that can impact online merchants. By staying informed and complying with these regulations, online merchants can ensure that their goods arrive on time and without incident.

Who bares the cost of import tariffs and are there agents that will handle the process?

The cost of import tariffs can be borne by either the importer or the exporter, depending on the agreement between the parties involved in the transaction. In some cases, the exporter may agree to pay the tariffs as part of their contract with the importer. In other cases, the importer may be responsible for paying the tariffs when the goods are received in the United States.

There are also agents and customs brokers who can handle the process of importing goods into the United States on behalf of online merchants. These agents are knowledgeable about the various tariffs and customs regulations that apply to different types of products and can help ensure that the import process runs smoothly. They can also help merchants prepare the necessary paperwork and documentation, and may be able to negotiate better rates on their behalf.

However, it’s important to note that hiring an agent or customs broker will incur additional costs, which may include fees for their services as well as any tariffs and duties that apply to the imported goods. As such, it’s important for online merchants to carefully consider the costs and benefits of using an agent or broker, and to make an informed decision based on their specific business needs and circumstances.

Can fulfillment centers or storage facilities be held liable for import costs?

Fulfillment centers or storage facilities generally cannot be held liable for import costs, as these costs are typically the responsibility of the importer of record, who is the party that brings the goods into the United States.

However, there are some situations in which fulfillment centers or storage facilities may be held liable for import costs. For example, if the facility is also acting as the importer of record for the goods being stored or shipped, they may be responsible for paying any tariffs or duties that apply. Additionally, if the facility knowingly accepts and stores goods that do not comply with U.S. import regulations, they may be subject to fines or other penalties.

In general, it’s important for fulfillment centers and storage facilities to have clear agreements with their clients regarding the responsibilities for import costs and compliance with U.S. import regulations. By establishing clear terms and procedures, these facilities can help minimize the risk of liability for any import-related issues that may arise.