Import Procedures

U.S. Customs and Border Protection (CBP) import requirements apply to anyone bringing foreign items into the United States. While CBP does not require an importer to have a license or permit to import goods from a foreign country, any item crossing the border into the United States is subject to customs clearance and customs duties unless specifically exempted. To obtain customs clearance from CBP, importers and their goods must take the necessary entry, examination, valuation, classification and clearance measures.
Among the documents needed to import there are:

• Entry Manifest or Application and Special Permit for Immediate Delivery or other form of merchandise release required by the port director,
• Evidence of right to make entry,
• Commercial invoice or a pro forma invoice when the commercial invoice cannot be produced,
• Packing lists,
• Other documents necessary to determine merchandise admissibility.

Import procedures are subject to a specific process. For more information, consult Tips for New Importers on CBP's Website.
Further information on import and customs clearance procedure is available on the website of U.S. Customs and Border Protection.

Specific Import Procedures

FDA is the federal agency responsible for ensuring that foods are safe, wholesome and sanitary; human and veterinary drugs, biological products, and medical devices are safe and effective; cosmetics are safe; and electronic products that emit radiation are safe.

Distribution channels

The U.S. is the undisputed world leader of the retail industry: of the world's ten largest retail companies, five are based in the country. The industry’s total GDP impact was estimated at $4.583 trillion in 2021, accounting for 19.9% of US GDP (National Retail Federation - NRF). This represent an increase of 14% compared to 2020, the highest growth rate in more than 20 years. The NRF forecasts that 2022 retail sales will grow between 6% and 8% in 2022, totalling between $4.86 trillion and $4.95 trillion. The retail industry supports more than one in four US jobs, or 52 million working Americans, making it the largest private-sector employer in the country (NRF). Companies that were the less affected by the Coronavirus crisis include food retailers, e-commerce players such as Amazon, third-party delivery platforms and major food brands (Euromonitor). Retailers were among the biggest winners of the first complete rewriting of federal tax law in three decades. According to the NRF, the Tax Cuts and Jobs Act has helped revive the economy by eliminating a wide range of tax benefits for businesses and using the money saved to lower rates for all businesses, large and small. The corporate tax rate has been reduced to 21% from 35%, and small business “pass throughs” have received a 20% deduction. The measure also provided relief for middle-class taxpayers.

The U.S. is the ultimate test market for exporters and is open to all kinds of new products and technologies. However, it is very spread out geographically and new products are subject to intense competition. The U.S. market is thus very demanding and requires a considerable amount of preparation, groundwork and long-term consistency. Numerous opportunities for growth exist in the U.S. retail market for retail providers of all sizes, including individual direct marketers or direct sellers, small- to medium-sized franchise unit owners, and large "big-box" store operators.

Distribution market players

The supermarket and grocery stores industry reached USD 728.86 billion in 2020, growing at a rate of 10.1% compared to 2019 (Census Bureau, latest data available). Market segmentation is drawn along various lines, including age group, ethnic group and even social and religious groups, which has forced distributors to adapt their strategies to this situation. One of the most marked consequences of this absence of homogeneity is the emergence in the past few years of "Specialty Stores" (Home Depot, Best Buy, etc.). Specialty food stores represent 2.8% of total food and beverage stores sales (Census Bureau, latest data available). American consumers stand out for their demanding nature, the importance they attach to price and their product disloyalty. It is thus incumbent upon distributors to continuously adapt themselves to the market and to engage in well-targeted marketing efforts in order to win consumer loyalty. According to the latest figures by USDA, grocery stores, including supermarkets and smaller grocery stores (except convenience stores) accounted for the largest share of store sales (92.1%), followed by convenience stores without gasoline (4.6%). Specialized food stores, including meat and seafood markets, produce markets, retail bakeries, and candy and nut stores, accounted for the remaining 3.3% of the total.

According to NRF latest data (2022), the main retailers in US are:
•    Walmart, with a turnover of $538.15 billions in retail sales
•    Amazon.com ($330.20 billion)
•    Schwarz Group ($158.58 billion)
•    Aldi ($134.67 billion)
•    Costco ($187.16 billion)

Retail Sector Organisations

National Retail Federation
Convenience Distribution Association (CDA)
International Council Shopping Centres
The Association for Convenience and Fuel Retailing (NACS)

Consumption Taxes

Nature of the Tax

Sales Tax is levied by individual states at various rates. Forty-five states, the District of Columbia and Puerto Rico collect statewide sales taxes, while only 38 states collect local sales taxes and in some cases may rival or even exceed state rates. Consult the Tax Foundation website for more information.

Tax Rate

Sales and use tax rates vary from state to state and generally range from 2.9% (Colorado) to 7.25% (California) at the state level. Most states also allow a "local option" that permits local jurisdictions, such as cities and counties, to impose an additional percentage on top of the state-level tax and to keep the related revenues. Such a system may induce consumers to make cross-border purchases (for example through e-commerce).

The five states with the highest average combined state and local sales tax rates are Louisiana (9.55%), Tennessee (9.548%), Arkansas (9.46%), Alabama (9.25%), and Oklahoma (8.98%). For the full list of applicable rates, click here.

Reduced Tax Rate

Varies by state and city (generally ranging from 2.9% to 7.25% at the state level). Click here for more information.

Other Consumption Taxes

Various consumption taxes may be levied at the local level. Click here for more information about other consumption taxes by states.

Excise duties are levied at federal and state levels on a wide range of goods and activities, including gasoline and diesel fuel used for transportation, air transportation, wagering, foreign insurance, certain sporting goods, firearms and ammunition, alcohol, tobacco, and selling certain goods at retail (e.g. heavy vehicles, trailers, bodies, and chassis).

Corporate Taxes

Company Tax

Federal corporate income tax is applied with a flat rate of 21% to the effectively connected income (ECI). State and local governments may also impose income taxes (generally ranging between 1% and 12%), thus the effective tax rate in each state. Click here for more information about corporate tax rates.

Tax Rate For Foreign Companies

A corporation organised or created in the United States under U.S. law or under the law of any state is considered to any extent a domestic corporation, even in the case that it does no business or owns no property in the United States. For U.S. law, a fixed place of business is considered as a permanent establishment in the country.

Capital Gains Taxation

Gains recognized by domestic corporations on capital assets (e.g., assets held for investment) are taxed at the same rate as ordinary income. Capital losses may be deducted against capital gains, but not against ordinary income. An excess of capital losses over capital gains in a tax year may be carried back three years and carried forward five years.

In general, foreign corporations are not subject to taxation on capital gains, except when the gains arise from selling U.S. real estate assets or are related to conducting business activities in the US.

Main Allowable Deductions and Tax Credits

Deductions are available for specific domestic production activities, qualifying business expenses and depreciation, amortisation and losses. Normally, start-up expenditures can be amortised over a 15-year period. The cost of goodwill generally is capitalised and amortised over 15 years. Bad debt resulting from a trade or business may be deducted in the year the debt becomes worthless. Certain charitable contributions may be deducted, up to a limit of 10% of taxable income, and may be carried over to the fifteen succeeding years. State and municipal taxes imposed on businesses are deductible expenses. Fines and penalties are not deductible unless they are paid for restitution or to come into compliance with the law. Special rules limit or deny deductions for interest, rent, or royalties paid on certain transactions.
For tax years beginning after 2017 and before 1 January 2026, the law provides a deduction equal to 37.5% of a domestic corporation's foreign-derived intangible income (FDII) plus 50% of the global intangible low-taxed income (GILTI) included in the corporation's gross income under new Section 951A. From tax years after December 31, 2025, the deduction is reduced to 21.875% for FDII and 37.5% for GILTI. If, in any tax year, the domestic corporation's taxable income is lower than the combined amount of its FDII and GILTI, the 37.5% FDII deduction and the 50% GILTI deduction are proportionally reduced by the difference.
Generally, net operating losses generated in tax years ending before 1 January 2018 may be carried back two years and, if not fully used, carried forward 20 years. Net operating losses (NOLs) generated in tax years ending after December 31, 2017, typically cannot be carried back and must instead be carried forward indefinitely. Nonetheless, the deduction for these NOLs is restricted to 80% of taxable income, which is calculated without considering the deduction.
Incentives are granted in the form of tax credits for R&D, energy-efficient appliances and "clean" motor vehicles.
Visit the IRS site for detailed information about available deductions in the U.S.

Other Corporate Taxes

Social security taxes comprise old age, survivors, and disability insurance (OASDI), and "Medicare". Employers are liable for social security tax of 6.2% on the first USD 142,800 of wages paid to employees and for Medicare tax of 1.45% on all wages. For 2023, social security tax is imposed on the first USD 160,200 of wages paid to employees. The different States can impose further contributions. The federal unemployment insurance rate is 6% on the first USD 7,000 of each employee’s wages. State unemployment insurance, mandatory in all 50 states and the District of Columbia, varies according to the State.

Certain companies are subject to an accumulated earnings tax equal to 20% of "accumulated taxable income" if they are deemed to be accumulating earnings and profits for the purpose of avoiding shareholder personal income tax.
U.S. corporations and foreign corporations meeting specific criteria of receiving significant "passive income" and being "closely held" may be liable for the personal holding company tax, levied at 20% of undistributed personal holding company income, which is imposed in addition to the regular tax.

Importers, manufacturers, and sellers of ozone-depleting chemicals, or imported products manufactured using such chemicals, are subject to environmental taxes calculated per weight of the ODC.

In addition to federal taxes, state and municipal taxes vary from one state or community to another, including property taxes on real property, stamp duties, franchise taxes and taxes on the capital of a corporation. For more details, consult the Tax Foundation website.

Other Domestic Resources

Internal Revenue Service (IRS)

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed

Double taxation treaty signed by the U.S.

Withholding Taxes

Dividends: 0% (paid to a resident)/30% (paid to a non-resident), Interest: 0% (paid to a resident)30% (paid to a non-resident), Royalties: 0% (paid to a resident)/30% (paid to a non-resident)
Different rates apply based on the treaties signed by the U.S. with other countries to avoid double taxation.