Import Regulations and Customs for Products
How US Customs Works for Ecommerce Importers
When your shipment arrives at a US port (sea) or airport (air), it enters CBP custody. Before the goods can be released to you, a customs entry must be filed declaring what the goods are, where they came from, what they are worth, and what duties are owed. For shipments valued over $2,500, a formal entry is required, which means working with a licensed customs broker who files the entry documentation on your behalf. For shipments under $2,500, an informal entry is possible (you can clear customs yourself), but using a broker is still recommended because errors on informal entries carry the same penalties as errors on formal entries.
The customs clearance process follows a standard sequence. Your freight forwarder or shipping line notifies you (or your broker) when the shipment arrives at the US port. Your customs broker files the entry with CBP, including the commercial invoice, packing list, bill of lading, and any required permits or certificates. CBP reviews the entry and either releases the goods (most common, typically within 1 to 3 business days), requests additional documentation, or selects the shipment for physical examination. Once released, the goods move to your warehouse via domestic freight carrier.
CBP examines roughly 3% to 5% of commercial entries. If your shipment is selected for examination, CBP inspectors verify that the declared contents match the actual shipment, check for prohibited or restricted goods, and may test products for regulatory compliance. Examination adds 3 to 10 business days to your clearance timeline and may incur additional port charges for container handling and storage. There is no way to avoid random examinations, but maintaining accurate declarations and clean import history reduces the likelihood of being targeted.
HTS Classification and Duty Rates
The Harmonized Tariff Schedule (HTS) is a classification system that assigns a 10-digit code to every product imported into the US. The HTS code determines the duty rate (the percentage tax you pay on the declared value of the goods), whether any special trade program benefits apply, and whether any special permits or compliance requirements are triggered. Correct HTS classification is critically important because using the wrong code can result in overpaying duties (costing you money on every shipment), underpaying duties (resulting in fines and back-payment demands from CBP), or missing a regulatory requirement that causes your goods to be held or seized.
HTS codes follow a hierarchical structure. The first 6 digits are internationally standardized (used by every country), while digits 7 through 10 are US-specific and determine the precise duty rate. For example, "4202" covers "trunks, suitcases, vanity cases, briefcases, and similar containers." Adding digits narrows the classification: "4202.12" specifies trunks and suitcases with an outer surface of plastics or textiles. Further digits specify the exact construction and material, with each level potentially carrying a different duty rate.
Duty rates for common ecommerce product categories range from 0% (many raw materials, components, and products from trade-preference countries) to 25% or higher (products subject to additional tariffs). Common rates include: apparel and textiles 10% to 32%, handbags and accessories 5% to 20%, electronics and components 0% to 5%, kitchenware and home goods 2% to 10%, toys 0% to 6%, and furniture 0% to 5%. These rates are baseline Most Favored Nation (MFN) rates. Additional tariffs (such as Section 301 tariffs on Chinese goods) may add 7.5% to 25% on top of the MFN rate depending on the product category and country of origin.
To find the correct HTS code for your product, use the US International Trade Commission's HTS search tool at hts.usitc.gov. Enter a description of your product and review the matching codes. For products that could reasonably fall under multiple classifications, consult with your customs broker or request a binding ruling from CBP, which is a formal determination of the correct classification that protects you from reclassification disputes in the future.
Required Import Documentation
Commercial invoice is the primary document for every import shipment. Your factory or supplier issues the commercial invoice, which must include: seller and buyer names and addresses, description of the goods in sufficient detail for classification, quantity and unit of measure, unit price and total value, currency, country of origin, terms of sale (FOB, CIF, etc.), and the HTS code(s). The invoice must reflect the actual transaction value, meaning the real price you paid for the goods. Undervaluing goods on the commercial invoice to reduce duties is customs fraud and carries severe penalties including seizure of goods, fines of up to 4x the unpaid duties, and potential criminal charges.
Packing list details the physical contents of the shipment: number of cartons, weight per carton, dimensions, and the products contained in each carton. The packing list helps CBP verify the shipment contents and helps your warehouse team receive and inventory the goods.
Bill of lading (B/L) or air waybill is the shipping document issued by the carrier (shipping line or airline) that serves as the contract of carriage and proof of shipment. For sea freight, the original bill of lading is a title document: whoever holds the original B/L has the legal right to claim the goods at the destination port. For air freight, the air waybill serves the same function but is not a title document.
Country of origin marking is required on the product itself (or its immediate container if marking the product is impractical) for all goods entering the US. The marking must indicate the country where the product was manufactured or substantially transformed, in English, in a conspicuous and permanent location. "Made in China," "Product of Vietnam," or "Manufactured in India" are standard formats. Failure to comply with country of origin marking requirements can result in goods being held at customs until they are properly marked, at additional cost to you.
Product-specific documents are required for regulated product categories. FDA-regulated products (food, cosmetics, drugs, medical devices) require prior notice of importation filed electronically with the FDA before the shipment arrives. CPSC-regulated products (consumer products, especially children's products) require a General Certificate of Conformity (GCC) or Children's Product Certificate (CPC) certifying that the product meets all applicable safety standards. FCC-regulated products (electronics that emit electromagnetic radiation) must have FCC certification or Declaration of Conformity documentation. Product testing for these certifications should be completed before your goods ship from the factory, not after they arrive at the US port.
Product Categories With Special Regulations
Children's products face the strictest import regulations under the Consumer Product Safety Improvement Act (CPSIA). Any product designed or intended primarily for children 12 years old or younger must be tested by a CPSC-accepted laboratory for lead content (100 ppm total lead, 90 ppm in paint), phthalate content (8 specific phthalates prohibited above 0.1%), small parts hazards (for children under 3), and applicable ASTM safety standards. Test results must be documented in a Children's Product Certificate (CPC) that accompanies every shipment. Importing children's products without a CPC is illegal and can result in seizure of goods and civil penalties up to $100,000 per violation.
Food and dietary supplements are regulated by the FDA and require facility registration, prior notice of importation, compliant labeling (nutrition facts, ingredient lists, allergen declarations), and compliance with Current Good Manufacturing Practice (cGMP) regulations. The FDA can detain any food shipment for inspection, refuse admission if the product appears to violate US food safety laws, and issue an import alert that flags all future shipments from the same manufacturer for automatic detention.
Cosmetics and personal care products are also FDA-regulated. While cosmetics do not require pre-market FDA approval (unlike drugs), they must comply with FDA labeling requirements, cannot contain prohibited ingredients, and must be manufactured under sanitary conditions. If a cosmetic product makes drug claims (e.g., "treats acne," "reduces wrinkles"), it is regulated as both a cosmetic and a drug, which triggers much stricter requirements including drug registration and compliance testing.
Electronics and electrical products require FCC authorization for any device that emits radiofrequency energy (including WiFi, Bluetooth, and cellular devices) and must comply with UL or equivalent safety standards for products that connect to electrical power. Lithium batteries have specific import requirements under Department of Transportation hazardous materials regulations, including UN38.3 testing certification, proper labeling, and shipping documentation.
Textiles and apparel require fiber content labeling (identifying every fiber and its percentage by weight), country of origin labeling, care instruction labels (following ASTM standard symbols or written instructions), and the registered identification number (RN) or name of the manufacturer or distributor. Textile imports are also subject to quota monitoring and may require a textile declaration on the customs entry.
Working With a Customs Broker
A licensed customs broker is a professional authorized by CBP to file customs entries, pay duties on your behalf, and resolve customs issues. For any ecommerce seller importing regularly, a customs broker is essential. Their expertise in classification, duty optimization, and regulatory compliance saves you money and prevents costly errors.
Choose a customs broker with experience in your product category. A broker who regularly handles food imports understands FDA prior notice requirements and common detention issues. A broker who specializes in electronics knows FCC and UL documentation requirements. General-practice brokers handle standard consumer goods competently, but specialized brokers add value through category-specific knowledge.
Customs broker fees typically include a per-entry fee ($75 to $200 per customs entry filed), a per-line-item fee ($25 to $50 for each additional HTS code in the entry beyond the first), and any CBP exam or government fees passed through at cost. For a standard ecommerce import shipment with 1 to 3 product types, total customs broker fees are typically $150 to $400 per shipment. This cost is a small fraction of the duty and compliance issues that incorrect filing can create.
Your customs broker should proactively review your HTS classifications to ensure you are paying the correct duty rate, not overpaying. They should alert you to changes in tariff rates or trade policies that affect your products. And they should advise you on trade preference programs (such as Generalized System of Preferences or free trade agreement benefits) that might reduce your duty costs.
Common Import Mistakes
Incorrect or missing country of origin marking is the most common customs violation for ecommerce importers. CBP takes marking violations seriously because they affect consumer purchasing decisions and trade statistics. If your goods arrive without proper marking, CBP will hold them until you arrange for marking at the port, which involves hiring a bonded warehouse worker to apply labels to every unit at $0.50 to $2.00 per unit plus warehouse storage fees. Prevent this by specifying marking requirements in your purchase order and verifying compliance during pre-shipment inspection.
Undervaluing goods on the commercial invoice to reduce duty payments is customs fraud. CBP has extensive data on product values and will question declarations that appear significantly below market value. If CBP determines that you undervalued your goods, they will assess duties on the correct value plus penalties of 2x to 4x the lost revenue. Your supplier may offer to create a lower-value invoice "to save on duties." Decline. The savings are not worth the legal risk.
Importing products without required safety certifications can result in goods being seized and destroyed at the port with no refund or recourse. This is especially common with children's products (missing CPC), electronics (missing FCC certification), and food products (missing FDA registration or prior notice). Complete all required product testing and certification before the goods leave the factory, and include certification documents with your customs entry.
Not budgeting for duties in your product costing is a planning mistake rather than a compliance mistake, but it is equally damaging. When you calculate your landed cost, include duties as a fixed cost per unit. If your product carries a 15% duty rate and you are importing $50,000 worth of goods, that is $7,500 in duties due at the time of customs clearance. Not having that cash available delays your shipment clearance and adds port storage charges while you scramble for funds.