The US customs process sounds more complicated than it usually is — but you do need to get a few things right, and the consequences of getting them wrong can be expensive. This guide is written for international founders who have proven US demand and are ready to take the next step: putting their inventory inside the US.
We'll cover what you're responsible for as the importer of record, what a customs broker actually does and whether you need one, how duties are calculated on a bulk shipment, and what to realistically expect the first time a pallet of your products arrives in the US.
Why putting inventory inside the US changes everything for your customer experience
Before we get into the mechanics, it's worth being clear about why this matters.
When you ship international parcels to US customers, every single order crosses a border. That means customs delays, inconsistent transit times, and — since the De Minimis threshold has been curtailed — potential import duties landing on your customer at the door. Even when everything goes smoothly, international parcel transit to the US typically takes 7–21 days. And when something goes wrong — a customs hold, a lost parcel, a return — the complexity multiplies.
When your inventory is already inside the US, none of that applies. Your US customer orders on a Tuesday. We ship on Tuesday. They receive their order on Thursday or Friday via USPS. No customs. No delays. No duties on delivery. A completely normal domestic experience.
The economics also change. You pay import costs once, on your bulk shipment. Every individual order then ships at domestic USPS commercial rates, which are significantly cheaper per unit than international parcel rates.
The importer of record — what it means and why it matters
When goods enter the United States, someone has to take legal responsibility for the import. That person or entity is called the importer of record (IOR). They are responsible for:
- Filing the customs entry with US Customs and Border Protection (CBP)
- Paying any applicable duties and taxes
- Ensuring the goods comply with US regulations
- Maintaining records of the import for five years
As an international brand shipping your own inventory into the US for storage and fulfillment, you are the importer of record. Your fulfillment partner (us) is not. We receive your goods after they've cleared customs; we have no involvement in the import process itself.
This has practical implications. You'll need a US Entity Number (EIN), or in some cases can use your foreign entity number — the specifics depend on your situation, which is why the next section matters.
Do you need a customs broker? (Usually yes. Here's why.)
A customs broker is a licensed professional who handles customs clearance on your behalf. They classify your goods under the Harmonized Tariff Schedule (HTS), file the entry paperwork with CBP, coordinate with you on duties and any compliance issues, and generally make sure your shipment clears without unnecessary delay.
For a first-time bulk import into the US, working with a customs broker is almost always worth it. The cost — typically a few hundred dollars per shipment — is minor relative to the cost of a customs hold or a misclassification that triggers an audit.
When selecting a customs broker:
- Make sure they're licensed by CBP (all licensed brokers are listed in CBP's database)
- Ask specifically about experience with your product category
- Get a clear quote on their fees before you commit — fees vary significantly
- Ask about their relationship with the port of entry you'll be using
Your freight forwarder (the company managing the physical shipping of your pallet or container) can often recommend a customs broker, and many offer brokerage services directly.
How import duties work on a bulk shipment vs. individual parcels
Import duties in the US are calculated based on the customs value of your goods and the applicable duty rate for your product's HTS classification. The basic formula is:
Duty = customs value × duty rate
The customs value is generally the transaction value — what you paid for the goods, or in the case of goods you manufactured yourself, the cost of production. Your customs broker will advise on how to correctly declare this.
Duty rates vary enormously by product. Many goods enter the US at 0% duty. Others — particularly certain textiles, electronics components, and goods from specific countries — can be 10–25% or higher. Knowing your HTS code (see below) tells you your duty rate.
The important point for your model: you pay this once, on your entire bulk shipment. When that inventory is inside the US and we ship individual domestic orders, no further duties apply. Those orders are domestic shipments and are treated as such.
HTS codes — what they are and how to find the right one for your products
The Harmonized Tariff Schedule (HTS) is a classification system that assigns a specific code to every type of imported product. Your HTS code determines your duty rate and affects what compliance requirements apply to your goods.
Finding the right HTS code is important — misclassification can lead to underpayment of duties (which creates liability) or overpayment (which costs you money unnecessarily).
How to find your HTS code:
- Start with the USITC HTS database at hts.usitc.gov — it's searchable by product description
- Cross-reference with the WCO's explanatory notes for the relevant heading
- When in doubt, ask your customs broker — classifying goods is a core part of what they do
For most straightforward physical goods, the classification process is relatively simple. It gets more complex with products that have multiple components or that sit at the boundary between categories.
What your first bulk shipment to a US fulfillment center actually looks like, step by step
Here's a realistic sequence for a European brand shipping a pallet of inventory to our Colorado facility for the first time.
4–6 weeks before shipment:
- Engage a freight forwarder for the ocean or air freight leg
- Engage a customs broker (your forwarder may handle this)
- Confirm your HTS classification with your broker
- Prepare your commercial invoice and packing list accurately — these are the documents that drive customs clearance
2–3 weeks before shipment:
- Confirm shipment details with us: expected arrival date, pallet count, SKU list, packing list
- Ensure your goods are correctly labelled — each SKU should be clearly identified
- Review your customs documents with your broker before shipment
During transit:
- Your broker will file the customs entry when the shipment arrives or in advance (ISF filing is required 24 hours before loading for ocean freight)
- Duties are assessed and you pay them through your broker
- CBP may examine the shipment — most shipments clear without physical examination, but some are selected randomly or flagged by product category
On arrival at our facility:
- We receive the shipment, verify against your packing list, check for damage, and bin each SKU
- You get a confirmation with your opening inventory count
- You're now live — orders can start flowing
Common mistakes international brands make on their first US shipment
Undervaluing goods on the customs declaration. This is both illegal and risky. CBP audits, and penalties for customs fraud are serious. Declare the accurate value.
Incorrect HTS classification. Often done by choosing the most general code rather than the most specific applicable code. Your broker should handle this, but it's worth double-checking.
Poor packing list documentation. The commercial invoice and packing list need to be accurate, complete, and consistent with each other. Discrepancies create holds.
Not accounting for ISF filing timing. For ocean freight, the Importer Security Filing (ISF) must be submitted at least 24 hours before goods are loaded at origin. Missing this creates a $5,000+ penalty.
Shipping goods that require additional compliance clearances. Certain product categories — food, supplements, electronics with wireless components, goods with safety certifications — have additional requirements beyond standard customs clearance. Know what your product requires before your goods are on a ship.
Using terms other than DDP. We require DDP (Delivered Duty Paid) — meaning duties are paid and customs clearance is completed before goods arrive at our facility. We cannot receive goods that haven't cleared customs.
Colorado Micro-Fulfillment works with international brands who are ready to put their inventory inside the US. We're not customs brokers or freight forwarders — but we've helped a lot of brands navigate this process and we're happy to point you in the right direction. Get a quote and let's talk about your US market entry.