Distributing a product

Evolution of the sector

The U.S. are the undisputed leader of the retail industry. Of the world’s 10 largest retail companies in the world, five of them are from the US. The turnover of retail trade in the U.S exceeded 4,000 billion in 2009 and 14.4 million people were employed in the U.S. Retail Industry in 2010.

It is the ultimate test market for exporters. The country is open to all kinds of new products and technologies, but geographically it is very spread out and there is an intense competition. This market is, however, very demanding and requires a considerable amount of preparation, groundwork and long-term consistency.

Market shares

Market segmentation is drawn along various lines, including age groups, ethnic groups, even social and religious groups, which has forced distributors to adapt themselves 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” such as (Home Depot, Best Buys etc) which currently represent 11% of retail sales. In fact, the American consumer is unique because of his demanding nature, the importance he attaches to price, and his 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 the loyalty of the consumer. The majority of sales, however, are still achieved by large distribution chains:

- Wal Mart ( 4000 outlets)
- The Kroger Co.
- Sears Roebuck & Co (bought by Kmart).

Organizations in the retail sector

National Retail Federation
American Wholesaler Association
International Council Shopping Centers
National Association of Convenience Store

We can identify professional tradeshows on your sector.

Market access procedures

International Conventions

Member of World Trade Organisation
Member of OECD
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboundary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies
Party of the International coffee agreement 2001

Main International economic cooperation

The United States has free trade agreements in force with 17 countries. These are:

- Australia
- Bahrain
- Canada
- Chile
- Dominican Republic
- El Salvador
- Guatemala
- Honduras
- Israel
- Jordan
- Mexico
- Morocco
- Nicaragua
- Oman
- Peru
- Singapore

President Obama signed free trade agreements with Colombia, Korea, and Panama on October 21, 2011, but the agreements have not been implemented.

The United States is also in negotiations of a regional, Asia-Pacific trade agreement, known as the Trans-Pacific Partnership (TPP) Agreement with the objective of shaping a high-standard, broad-based regional pact.

Non tariff barriers

Farm products are subject to both the FDA (Food and Drug Administration) and the USDA (US AGRICULTURAL DEPARTMENT) rules.
- Dairy products require an import license and quotas do exist. Products should conform to the strict sanitary and labeling rules. A description of ingredients is also required.
- Most fruits, vegetables and hazelnuts are subject to import licenses. The APHIS (Animal and Plant Health Inspection Service) analyses the risks of disease.
- Meat-based products can only be imported via ports with checking sanitary installations authorized by the USDA. The APHIS examines all goods.

Nearly 20% of all imports into the US are food and food products. In 2002, Congress passed the Bioterrorism Act as a part of its ongoing effort to fight terrorism. The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (Bioterrorism Act) requires that FDA develops two systems: one to support the registration of facilities that manufacture, process, pack, or hold food products intended for consumption in the United States and one to receive prior notice before food is imported or offered for import into the United States, beginning on December 12, 2003. Prior notice must be submitted electronically at Food and Drug Administration (FDA).

Manufactured goods should also conform the American standards, which implies potential additional costs. Electric equipment should be systematically guaranteed by a third part. There are not less than 2,700 municipal or federal authorities able to distribute safety certifications, and they do vary from State to State. As there is no central source of information about the normative aspects, it is imperative to inquire beforehand with the help of an importer.
Whatever the nature of the product is, documentation is important, especially in terms of invoice and certificate of origin. The documentary formalities are notably very heavy for textiles import (above a part of 5 % in the composition of the textile product, all the products should be listed very precisely). The labeling rules can also generate important additional costs.

Finally the USA applies a certain number of embargoes, forbidding the import of products manufactured with components originating from several countries. For a list of countries for which the U.S. apply an embargo (full or partial), visit the U.S. Department of the Treasury's website.

Customs duties and taxes on imports

USA applies a Customs tariff that is among the lowest in the world. It is 3% on average.
The WTO gives a sheet summarizing the Customs tariffs by country.

Customs classification

Depending on the origin of products. .

Import procedures

Import procedure is subjected to a specific process. Click here to see all the requirements to be completed while importing a product in The USA.

Importing samples

Sample goods are classified under chapter 98 of the US Harmonized Tariff Schedule, a chapter designated for specialty import provisions. Most imported samples are classified under HTS number 9811.00.60. Samples classified in this way must not be valued over USD 1 or must be permanently marked, torn, perforated, or otherwise mutilated so that they are not suitable as a saleable item. Sample imports classified under HTS classification 9811.00.60 and meeting the above requirements for marking are free of duty from any country of import.

For further information

US Customs and Border Protection
US department of Commerce
US State Department

We can indicate you which are the customs duties applied to your product.

Find out the local taxes that apply to your product.

Organizing goods transport

Main useful means of transport

All coasts of the country have important, highly computerized ports, automated for a fast distribution of the goods (especially in containers); some of them offer a direct connection towards waterways.

The network in place for goods transportation is much wider than the one of travelers and concentrates on its own 30% of total goods transport.

An important deregulation took place on the American railway freight market in the 80s, and since then, the part of total freight transport increased to more than 40%.

Ports

Port of Charleston
Port of Houston
The Port Authority of New York and New Jersey
Port of Los Angeles
Port of Miami
Port of Boston
Port of Norfolk
American Association of Port Authorities
Port of San Francisco
Port of Harlingen
Port of Seattle
Port of Tacoma

Airports

List of U.S Airports

Sea transport organizations

US Department of Transportation Maritime Administration

Air transport organizations

Federal Aviation Administration

Road transport organizations

U.S Department of Transportation - Federal Highway Administration

Rail transport organizations

Federal Railroad Administration

Get a ballpark figure for transportation costs for your product in this country through a shipping estimate.

Identifying a supplier

Type of production

The USA is leading industrial power in the world, highly diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining

Business directories

Yellow Pages
White Pages

Manufacturers associations of the main industries

Information Technology Association of America
Independent Petroleum Association of America
Aerospace Industry Association
Producers Association of Mechanical Equipment

Trade Agencies and their representations abroad

U.S Chamber of Commerce
US Small Business Administration
National Business Association

Enterprises federation

Administration of Small and Medium Enterprises
National Association of Manufacturers

Standards

National standards organizations

American National Standards Institute
National Institute of Standards and Technology (NIST)

Integration in the international standards network

The ANSI is a member of:
- The International Standard organization (ISO);
- The International Electrotechnical Commission (IEC);
- The International Accreditation Forum (IAF)
- The U.S. member of the Pacific Area Standards Congress (PASC)
- The Pan American Standards Commission (COPANT)
- The Pacific Accreditation Cooperation (PAC)
- Via the ANSI-ASQ National Accreditation Board (ANAB), a member of the Inter American Accreditation Cooperation (IAAC).

Classification of standards

- Five Standards Panel manage by the American National Standards Institute:
- the ANSI Biofuels Standards Panel (ANSI-BSP),
- the Healthcare Information Technology Standards Panel,
- the ANSI Homeland Security Standards Panel,
- the ANSI Nanotechnology Standards Panel,
- the Identity Theft Prevention and Identity Management Standards Panel,
- the classification code is: ANSI + 1 letter showing the technical area + digit number and the year.

Online consultation of standards

The ANSI webstore or the search engine NSSN.

Certification organizations

Directory of ANSI Accredited Certification Programs for Product Certifiers
Directory of Accredited Telecommunication Certification Body Programs
Directory of ANSI Accredited Certification Programs for SQF Standards
Directory of ANSI Accredited Certification Programs for SFI and PEFC Standards

Find out the standards and labelling requirements that apply to your products.

Intellectual Property

National organizations

United States Patent and Trademark Office.
U.S Copyright Office

Regional organizations

UNECA (UN Economic Commission for Africa)

APEC (Asian-Pacific Economic Cooperation)

UNECE (UN Economic Commission for Europe )

ECLAC (UN Ecomomic Commission for Latin America & the Carribean)

ESCWA (UN Ecomomic and Social Commission for Western Asia)

International membership

Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention for the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)