Exporting to the US: Key takeaways from expert voices – plus our FREE downloadable magazine that tells you more
The United States offers many great business opportunities to foreign companies. In our free magazine, available here, industry experts have shared practical insights on the key customs, legal, tax, and logistics considerations you need to understand when exporting to the US.
These articles from experts provide clear guidance to help you navigate common challenges, avoid costly mistakes, and prepare your business for a successful entry into the American market.
The articles are summarised below:
1. Assessing Export Readiness: A Guide for South African Businesses
ITRISA – a trade training and consultancy leader across Southern Africa – gives useful points for South African businesses who are considering expanding into international trade. These companies must first consider their export readiness by assessing these areas of their business:
- Operational Capacity
- Product Exportability
- Market Research
- Financial Stability
- Regulatory Compliance
2. Benefitting from AGOA Trade Benefits
AGOA is a unilateral trade agreement offered under the US Generalise System of Preferences (GSP) to companies in many Sub-Saharan countries that offers duty-free access to the US market for many tariff lines. To qualify, South African exporters are required to register as AGOA exporters and meet the AGOA Rules of Origin on their products.
Trade Law Chambers is rated as the leading international trade law firm in South Africa, and is able to help exporters to benefit from AGOA trade benefits. The article was published in 2024, AGOA has since been updated, updates are published online.
3. Practical Considerations for Exporting to America
In this article by Africa Business Group, they lay out 10 steps to help businesses trade with America. These steps cover understanding the US market and industry, identifying key regional areas of activity, understanding the governance of local and state governments, and more.
4. Importing of Food to the USA – Six Critical Points for Compliance Success
The USA offers amazing business opportunities for companies that want to export to it; however, it is a highly regulated market which can present significant barriers for foreign traders, especially for those looking to export food products. The article written by Primority Ltd & Global Import Agent gives 6 points for exporters of food products to consider with regard to food safety laws and compliance.
5. Legal and Tax Considerations for Exporting to America
Hogan Lovells, with vast experience in advising in highly regulated sectors and markets, outlines some key legal and tax considerations when exporting to the US. The article states that the legal framework of the US offers a business-friendly, transparent environment for foreign investors. However, there are some legal hurdles and particularities that may be faced by exporters, including national-security review by CFIUS, choosing the right market entry structure, navigating varied state laws and contracts, and considering regulatory, tax, and compliance issues.
6. How to calculate American import duty tax and sales tax
ImportExportLicense outlines 4 different ways that American customs can charge import duties (none/free, rated or specific, ad valorem, compounded), and then the steps a South African exporter would take to calculate customs duty to determine the landed costs and selling prices on their product.
Additional customs duties may need to be calculated on top of the sales tax, which needs to be taken into account. South African businesses are also required to be registered with the correct customs and international trade compliance documentation.
7. Distribution Strategies for Businesses Exporting to the US
Establishing the correct distribution channels is a necessary consideration for South African businesses that wish to successfully expand into global markets. re: Trade is a company that offers tailored supply chain solutions to its clients to help them meet their business objectives.
Export Grants for Exporting to America
ImportExportLicense explains that the South African government provides export grants to its citizens through the EMIA scheme to help businesses develop export markets for South African products and services via support, research, and patent registration. There are particular requirements that must be fulfilled in order to qualify for the EMIA scheme, which also include other general qualifying criteria.
There are several different grant types that are available, and they fall under two main categories:
- Individual participation incentive schemes; and,
- Group participation incentive schemes
The particular grant type that one applies for is dependent on the needs of the business.
Interested in reading more? Download the full copy of our free magazine here to learn more!
