Every year hundreds of funded companies based in Australia, the UK, Canada and Europe announce US expansion. Most of them have a product, a distribution plan and a warehouse arranged. Most of them do not have a mapped compliance picture.

Here is the checklist we use at Domshark Raqam when a foreign physical product company is entering the US market. These are not general guidelines. These are the specific items that create expensive problems when they are not addressed before the first shipment.

Step 1 — Verify your HS code independently

Do not use the code your supplier put on the commercial invoice. Your Chinese, Indian or Vietnamese manufacturer does not determine your US tariff classification — CBP does. The correct 10-digit HTS code determines every tariff layer you will pay. An incorrect code means incorrect duty calculations, incorrect Section 301 assessment and potentially an incorrect Section 301 exclusion application.

Verify your code against the US International Trade Commission HTS schedule at hts.usitc.gov and the CBP CROSS ruling database at rulings.cbp.gov before your first commercial shipment.

Step 2 — Map every tariff layer not just the headline rate

Most online tariff calculators show you the base MFN rate. Your actual effective rate in 2026 may be four layers stacked:

Layer 1 — Base MFN rate (often 0% for electronics and technology goods) Layer 2 — Section 301 surcharge (7.5% to 25% depending on your product and List) Layer 3 — Section 122 temporary surcharge (15% — expires July 24, 2026) Layer 4 — Anti-dumping or countervailing duty orders (0% to over 200% for certain product categories from China)

The combined effective rate on many Chinese-origin goods entering the US today is 22.5% or higher before AD/CVD. Map all four layers before you calculate your landed cost.

Step 3 — Screen for Section 301 exclusion eligibility

The USTR exclusion database at ustr.gov contains historical exclusions granted in 2019 and 2020 for thousands of product descriptions. If your product matches an approved exclusion category — even historically — you have a basis for a new exclusion application. The application is free. If approved the Section 301 surcharge is removed permanently and retroactively from the filing date.

Check the database before you file your first entry. Do not miss a free annual saving because nobody looked.

Step 4 — Establish a compliant Importer of Record structure

Every commercial entry over USD 2,500 requires an IOR with a valid CBP importer number. If you do not have a US entity with CBP registration, or a licensed customs broker with Customs Power of Attorney acting on your behalf, your shipment cannot clear customs.

Engage a licensed US customs broker before your shipment leaves the factory. The setup process takes 3 to 5 business days. The cost is USD 150 to 350 per entry. The cost of a shipment held at the port while you scramble to arrange IOR is significantly higher.

Step 5 — Understand your US entity compliance calendar

If your company has set up a US entity to act as IOR or to manage US operations, you have compliance obligations from day one of that entity’s existence.

The most critical: Form 5472. A foreign-owned single-member LLC must file this form annually with a pro forma Form 1120. Penalty for missing it: USD 25,000. No income required. No reminders sent.

Additionally: state annual reports, foreign qualification in operating states, sales tax nexus obligations under the Wayfair ruling, and if you are registering in New York State, the New York LLC Transparency Act beneficial ownership filing within 30 days of registration.

Map these obligations before the entity’s first financial year closes.

Step 6 — Model post-July 24 scenarios now

The Section 122 surcharge expires July 24, 2026. New permanent tariffs will replace it. USTR overcapacity hearings running through May 2026 are determining what those new rates look like. For electronics importers specifically — electronics is one of 21 sectors explicitly named in the investigation.

Your duty costs from August 2026 onwards are uncertain. Model three scenarios — best case, base case, worst case — against your projected import volumes before you commit to US pricing, distributor margins and retail price points.

The bottom line

US market entry with a physical product has a compliance layer that most founders do not see until it costs them money. The six steps above are the minimum required before your first commercial shipment. Every one of them is cheaper to address before the shipment arrives than after.

If you want someone to map all six for your specific products, sourcing country and US entity structure — that is exactly what we do at Domshark Raqam. Fixed price. 10 business days. domshark.co/us-market-entry