Starting An Import Business Abroad? Don't Look At Tariffs Alone

Starting an Import Business Abroad? Don't Look at Tariffs Alone

Moving to another country or starting a business that imports products internationally comes with plenty of practical questions.

Where should you source products?

How much will shipping cost?

What taxes will apply?

And one of the first questions most people ask:

**How much import duty will I have to pay?**

The tariff matters, but it isn't the complete picture.

A product with a low duty rate can still come with additional duties, taxes, permits, licenses, certifications, restrictions, or requirements from government agencies.

### Don't Stop at the HTS Code

If you're importing into the United States, the Harmonized Tariff Schedule is an important place to start. The HTS classification helps determine how the product is treated for customs purposes.

But the code doesn't tell you everything about the product.

Its intended use, materials, characteristics, manufacturer, and country of origin can all affect the compliance requirements.

If you're new to importing and want a straightforward explanation of the different factors involved, this **[]import compliance guide](https://borderlinegenius.co ... covers duties, taxes, restrictions, licenses, and government-agency requirements.

### The Cheapest Supplier May Not Be the Cheapest Option

Suppose you find two suppliers selling similar products.

One has a lower price and a lower standard tariff rate, so it looks like the obvious choice.

Then you find out that the product is subject to an additional duty or trade-remedy measure. Maybe the country of origin changes the applicable treatment. Maybe there are taxes or regulatory costs that weren't included in the original calculation.

The numbers can change quickly.

That's why it's worth looking at the broader landed cost instead of comparing suppliers based only on product price and headline tariff.

### Customs May Not Be the Only Agency Involved

Another thing that can catch new importers off guard is government-agency regulation.

Depending on what you're importing, you may have additional requirements related to food, agriculture, pharmaceuticals, medical products, chemicals, consumer products, or other regulated goods.

You might need a permit, certification, additional documentation, or other information before the shipment can be admitted.

So there are really two questions to answer:

**How much will it cost to import?**

and

**Can I import it under the conditions I currently have?**

Those aren't necessarily the same thing.

### A Simple Way to Start

If you're planning your first few international shipments, don't make the process more complicated than it needs to be. But don't oversimplify it either.

Start by understanding exactly what the product is and what it will be used for.

Then look at its HS or HTS classification, duty treatment, country of origin, and any additional duties or trade measures.

After that, check applicable taxes and look for restrictions, licenses, permits, certifications, or requirements from other government agencies.

Doing this research before placing a large order is usually much easier than discovering a problem after the goods have already shipped.

### One Last Thing

A tariff number can tell you something important about an import.

It just can't tell you everything.

If you're sourcing products internationally, the better question is not simply **"What's the import duty?"**

It's:

**"What will this product actually cost to import, and what do I need to do to get it into the market compliantly?"**

That broader view can save you from making a sourcing decision that looks good on paper but becomes expensive once the shipment is underway.

New York, Business, Starting An Import Business Abroad? Don
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