Import and Export in the United States

It is believed that the United States has everything, and buying any goods in this country is very easy. If you think the same, we must disappoint you and warn you about a mistake that many businesspeople make in the States. Such careless attitudes can lead to financial losses and even the collapse of your business.

We have been working in the procurement market in the U.S. for many years and have substantial experience in other countries as well. However, even we cannot guarantee a 100% solution to all your problems when exporting goods from the States. But we promise that with us, you will not make the same mistakes as other companies that are just starting their procurement activities in the U.S.

Large corporations in the U.S. most often sell their goods in bulk, sending them to the addresses of buyer companies. Clients from Kazakhstan and Europe have to make purchases at the manufacturer's branches in their countries or the closest geographically located ones. Naturally, the cost of goods at these branches is significantly higher than the prices from American producers, as the shipping costs are already included. As for the range of products, it is significantly poorer than in the U.S. due to the same shipping issues. This is not surprising, as successful trade of American goods in Kazakhstan or any European country requires preparation. This preparation involves not only renting premises and establishing delivery but also translating usage instructions, preparing documentation that proves the authenticity of the goods, certification, and other complex and lengthy procedures.

Let's start with procurement. Here, you will need to be patient and learn a lot, as substantial knowledge is required. To be clear, there are no minor aspects in this area, so please take the information below seriously. You will need to find out how to:

• make purchases at the most advantageous rates, so you pay less than other buyers for the same goods;
• receive a markup from the manufacturer;
• account for overhead costs considering all legal norms;
• reduce transportation costs within the U.S.;
• lower warehousing costs;
• insure the cargo profitably;
• become a dealer for the products you choose;
• ensure that the goods you purchase meet the standards of the country where you plan to sell them;
• pre-plan customs duties;
• recover commissions;
• package the products so that not a single item is damaged during transportation;
• prepare documents for submission to the customs authority.

Procurement and Export from the U.S.

The process during which you buy goods at below-market prices and sell them in countries where the manufacturer does not sell at all or has a very weak distributor that is trying to inflate prices significantly is called "gray marketing." You may have three reasons for this type of business:

• the opportunity to get ahead of competitors;
• the manufacturer's refusal of your intention to become an official dealer;
• the official dealer does not meet the market needs in the sales region, and demand for the product in the country or region remains high.

Despite its unsavory name, you can obtain "gray" goods at prices lower than the purchase price completely legally. There are two ways to do this.

1. Buying leftovers from an official dealer, one or several, depending on the desired batch size.
2. Operating as an official dealer selling goods within the U.S.

In the first case, you must act very quickly; the entire procedure should take a maximum of a few hours. In the second case, you will have to find or create another company that will buy the batches from you and transport them to Kazakhstan or Europe. Manufacturers may hinder the operations of such dealers, but essentially they can do nothing about it. The fact is that under American law, a dealer can sell goods to anyone and in any volume. As for the company that purchased the batch, it is no longer bound by any obligations to the manufacturer.

And of course, you can always use the third method—contact us. Our specialists will handle the documentation and transportation of any batches of goods from manufacturers. You will not have to worry about customs, documentation, or even selling the purchased products. All you will need to do is to timely pay for the goods and services purchased and then receive your profits.

What Purchases Can We Help You With?

Currently, the procurement market is undergoing significant changes. Some goods are losing popularity, while others are gaining it. Increasingly, businesspeople prefer to procure clothing from local manufacturers in the U.S., mobile phones, tablets, and other electronics, special industrial equipment, manufacturing machines, and their parts. Occasionally, there are orders for freight vehicles, mainly large trucks. In many countries, American solar panels and building materials are in demand.

You may ask a reasonable question: "Wouldn't it be more profitable to buy the same items in China, which is nearby and offers low prices?" We will answer you—no, it simply won’t work.

Import and Export in the United States

It is believed that the United States has everything, and buying any product in this country is very simple. If you think the same, we must disappoint you and warn you about a mistake that many entrepreneurs in the States make. Such a careless attitude can lead you to financial losses and even the collapse of your business.

We have been working in the procurement market in the U.S. for many years, with solid experience in other countries as well. However, even we cannot guarantee a 100% solution to all your problems when exporting goods from the States. But we promise that with us, you won't make the same mistakes as other companies that are just starting their operations in procurement on U.S. territory.

Large U.S. corporations most often sell their goods wholesale, sending them to the addresses of buyer companies. Clients from Kazakhstan and Europe have to make purchases at the manufacturer's branches in their countries or in the geographically closest countries. Naturally, the cost of goods in these branches is significantly higher than the price from American manufacturers, as it already includes shipping. As for the assortment, it is considerably poorer than in the U.S. due to the same shipping constraints. This is not surprising, as preparing to successfully start trading American goods in Kazakhstan or any European country requires preparation. This involves not only renting premises and establishing delivery but also translating user instructions, arranging documentation that proves the authenticity of the goods, certification, and other complex and lengthy procedures.

Let's start with procurement. Here, you will need to be patient and learn a lot, as significant knowledge will be required. Let us state right away that there are no minor aspects here, so please take the information below very seriously. So, you will need to learn how to:

• make purchases at the most advantageous rates so that you pay less than other buyers for the same goods;
• receive additional payments from the manufacturer;
• consider overhead costs in accordance with all legal norms;
• reduce transportation costs within the U.S.;
• minimize storage expenses;
• insure the cargo profitably;
• become a dealer for the product you choose;
• ensure that the product you are purchasing meets the standards of the country where you plan to sell it;
• plan customs duties in advance;
• get your commissions back;
• package the products in such a way that not a single item is damaged during transportation;
• prepare documents for submission to customs authorities.

Procurement and Export from the U.S.

The process during which you buy goods at a price lower than the market price and sell them in countries where the manufacturer is not selling at all or has a very weak distributor that is trying to significantly inflate prices is called "gray marketing." You may have three reasons for this type of business:

• the opportunity to outpace competitors;
• the manufacturer's refusal of your intention to become an official dealer;
• the official dealer does not satisfy market needs in the sales region, and demand for the product in the country or region remains high.

Despite its unflattering name, "gray" goods at a price lower than the purchase price can be obtained completely legally. There are two ways to do this.

1. Buy leftovers from an official dealer, one or several, depending on the desired volume of the batch.
2. Work as an official dealer selling goods in the United States.

In the first case, you must act very quickly; the entire procedure should take no more than a few hours. In the second case, you will need to find or create another company that will purchase batches from you and transport them to Kazakhstan or Europe. Manufacturers may hinder the work of such dealers, but essentially they cannot do anything about it. The fact is that under American law, a dealer can sell goods to anyone in any volume. As for the company that purchased the batch, it is no longer bound by any obligations to the manufacturer.

And of course, you can always use a third option – contact us. Our specialists will take care of the documentation and transportation of any batches of goods from manufacturers. You won't have to worry about customs, documents, or even selling the purchased products. All you will need to do is pay for the goods and services on time and then reap the profits.

What Purchases Can We Help You With?

Currently, the procurement market is undergoing serious changes. Some products are losing popularity while others are gaining it. Increasingly, entrepreneurs prefer to procure clothing from local manufacturers in the U.S., mobile phones, tablets, and other electronics, specialized industrial equipment, manufacturing machines, and their parts. Occasionally, there are orders for cargo vehicles, mainly heavy trucks. In many countries, American solar panels and building materials are in demand.

You might ask a reasonable question: “Wouldn’t it be more profitable to purchase the same items in China, which is nearby and offers low prices?” We will answer you – no, it simply won’t work.

First, you need to understand one thing: the work of Chinese companies producing goods under U.S. brands is regulated by Chinese legislation. According to the laws of the PRC, a manufacturer cannot sell its products directly from the factory. Therefore, there are no distributor networks for American companies in China. Buying goods from Chinese resellers may require more serious expenses than purchasing in the U.S.

By the way, if you are not from Kazakhstan, pay attention to this opportunity: in the U.S. and China, you can profitably order the production of the goods you need under your brand for further sale in your homeland or another country. At the same time, you will receive benefits and the possibility of obtaining substantial loans from the Export-Import Bank of the United States. Unfortunately, for Kazakhs, there are currently restrictions in this regard.

Importing to the U.S.

In our work, we are increasingly encountering clients who want to sell something in the States, rather than the other way around. These are not only manufacturers of goods but also distributors who want to expand their market and find even more customers. This is not surprising, as the American market is probably the largest in the world for virtually any product. However, most sellers do not understand the specifics of the American market. It is impossible to simply bring goods from another country and wait for them to be purchased by buyers.

Today, the true sales champions in the U.S. are rightfully the Chinese. They are well prepared because they have spent years working to dominate the U.S. market. Chinese entrepreneurs have settled here so well that American companies buy goods branded from the Middle Kingdom exclusively from them. Representatives from other countries cannot sell products from the PRC in the U.S.; they are not prohibited from doing so, but no one will buy them. There are exceptions to this rule, but they are few.

As for products from Kazakhstan, the CIS, and Europe, you have many more opportunities here. Naturally, you will need to invest some amount in marketing activities, website development, and market promotion. Don’t forget about the pre-sale preparation of the product: packaging, certification, if required by law. If a certificate is necessary and it is not available, you will not be able to sell the product in the U.S.

Another key factor that you must consider is the level of competition in your business niche. With a large number of competitors, seriously consider whether you should change the country for selling your goods. If you want to operate specifically in the U.S., change your niche so that the company can develop fully. Otherwise, it will remain just a small grain of sand in the vast world of trade. The optimal option is an undeveloped niche, unoccupied by sellers at all, or one where there are no more than five companies.

How to Successfully Enter the American Market

The key to success in this case is a well-developed and implemented advertising strategy. You need to make your presence known not only on the internet or, for example, in specialized media but also at exhibitions, forums, and conferences. Naturally, this requires considerable funding, but if you do not plan to make such investments, you will have to give up the dream of selling in the U.S. Let us state right away that you won’t need millions of dollars, but you won’t be able to manage with just a few thousand either. Remember that with a successful investment, your money will return to you in a few months, at most a year after the start of sales.

A high level of sales in the U.S. will provide your production with a stable market, improve its financial status, and enhance the company's prestige. Moreover, if you wish to move to the U.S. for permanent residence, it will be easier for you to obtain a green card.

Green Card for Foreign Entrepreneurs

The U.S. authorities will not show much interest in what you are doing: whether you are producing goods, exporting them, or importing them into the country. What matters most to them are the jobs you create. The turnover of your enterprise is also significant, which means the taxes you contribute to the state budget.

By the way, the taxes of companies selling goods in the U.S. are not very noticeable to their budget. These taxes are accounted for by American partners when entering into agreements with your enterprise. It turns out that they are the ones paying the taxes, not you. However, this is not very significant for the authorities; what matters to them is that they receive these taxes with your participation.

Methods of Operation

Exporting from Kazakhstan to the U.S. requires you to have two registered companies: one in Kazakhstan and one in America. The Kazakhstani company sells goods to the American company (essentially, you are making this deal with yourself), and then they are sold on U.S. territory by any other companies at your discretion.

Importing from the U.S. to Kazakhstan also requires two companies. The American company buys goods from one or several manufacturers and sells them to the Kazakhstani company. The American firm pays a small tax, while the Kazakhstani company can specify a convenient purchase price.

You might say that "a small tax" is a vague concept. This is quite fair, considering that tax amounts and rates vary from state to state. The lowest taxes for this type of activity are in Nevada and Wyoming, which is zero percent. Moreover, the authorities and tax agencies in these states impose very few specific requirements for documentation. If Nevada does not suit you in terms of climate and geography, do not worry—your legal entity can be registered in that state while conducting activities across the entire U.S.

What Else You Should Know About Taxes in the U.S.

In this country, businesses do not pay VAT (the U.S. has never had VAT); this fee is completely covered by income tax. The rate varies by state; we will provide an average value: federal income taxes are 21% of net profits, regardless of the size of the profit. Some states have separate state income taxes. In some states, there is also a mandatory registration fee, the amount of which is determined by local authorities.

Important! Remember that in the U.S., foreign citizens may not have to pay income tax on personal earnings. To obtain this right, after opening a bank account, it is necessary to fill out Form 8ben and send it to the U.S. tax service.

If desired, you can reduce the level of official income to decrease taxes. This is done very simply and, importantly, legally. You can just write off the necessary amounts for marketing activities, research, and development. By the way, such investments often pay off very well later.

Immigration service officers are unlikely to be interested in how much tax you pay. Especially if you entrust communication with them to professionals. We will free you from concerns related to obtaining residency and provide you with a valuable opportunity to save your personal time.

Based on what we have said above, it can be confidently stated that importing or exporting your goods to the U.S. guarantees the success of your company, its enrichment, and prestige. This activity is especially beneficial for those who wish to move to this country for permanent residence. If you are truly interested in success, delegate the organization of purchasing and supplying goods to our company. We will bring your products to the American market, and provide you and your loved ones with the opportunity to become U.S. citizens.