As per the statistics provided by the World Trade Organization, the United States is both a major importer and exporter of electrical goods. It sells telecommunication devices and computers in large numbers to different countries. It also imports small electrical equipment, semiconductors, domestic electrical equipment, mobile phones, and laptops from several countries like Mexico, China, Taiwan, and South Korea.
Why Does The USA Import Electrical Goods?
Several reasons support the high imports of the United States in the electrical goods segment, and high domestic demand and higher local production costs are the major ones. If we look at the United States trade data, it is clear that there is a separate commodity group “8536”.
It comprises of the following electrical apparatus which do not exceed the potential difference of 1000 volts:
- Equipment for switching
- Equipment for protecting circuits and making connections
- Surge suppressors
- Lamp holders
- Junction boxes
The United States trade body to classify any other equipment in the above group if they feel the need to do so. Numerous importers in the country buy electrical components in large numbers to assemble final goods, and Fat Tire Golf Scooter is one of them.
US Import-Export Data Insights
Before we move ahead and discuss the approach to import electrical goods to the United States, let us ponder on some important statistical insights of the import-export data:
- The Covid Effect
The total import of electrical goods totaled $9.86 billion in 2020, but it showed a 9.43% decrease from 2019. However, the COVID-19 pandemic was the primary reason for the fall in imports, and they are expected to pick up the pace from 2021 onward.
- Group 8536 Stats
The electrical imports under commodity group 8536 held 0.41% of the total import inflow to the United States in 2020, compared to 0.424% in 2019.
- Top Electrical Goods Suppliers
Major electrical goods exports to the United States in the descending order of the share of their total imports to the country were:
- Dominican Republic
Also, the majority of engineering components buyers of the United States preferred electrical components above finished goods for the imports.
Steps To Import Electrical Goods To The United States
There’s no denying that the United States market brings immense opportunities for sellers around the world. Therefore, if you also want to sell electrical equipment to the engineering components buyers of the country, then you can take the following approach:
Choosing Right Products
The first step for the exporters is to choose the right product to export to the United States. A feasible approach is by looking at the US import-export data and identifying the products. That has a massive demand in the United States domestic market and are frequently imported. Hence, it is also important to note which products churn maximum profits for the exporters. Which ones will stay there on the import list for a while.
Terms Of Payment
It is advisable to agree to the terms of payment with your seller before shipping the goods. The agreement contains terms and conditions related to payment against delivery, the burden of shipment cost. Thus, the obligation of loss in case of damage or accidents, insurance terms, etc. It also contains taxation-related conditions. If the partner countries have agreements like FTAs (Free Trade Agreements) and DTAAs (Double Tax Avoidance Agreements).
It is possible that the seller may not have enough capital to proceed ahead with the shipment of electrical goods to the United States. In that case, they may look at the finance options from banks. Similarly, insurance can also be arranged against the credit risks involved in the export of electrical goods.
After running quality checks on the shipment of your electrical goods. Arrange for proper packaging with pallets and crates as required. Electrical goods exporters who sell goods to mega importers like Fat Tire Golf Scooter rely on traditional and innovative packaging methods. Moreover, most exporters decide whether to go for FCL (Full Container Load) or LCL (Less than Container Load). Based on the type of electrical shipment.
The final and mandatory step for shipping your electrical goods to the United States market is fulfilling the documentation formalities. Also, you need to furnish several vital documents like Bill of Lading, Export invoice, export packing list, certificate of origin, etc., to be able to ship your goods to the customer port.
Also, check “How to retain accountancy staff post-Covid?“
What’s The Best Way To Stand Out In The Electrical Goods Market?
With the increased competition in the United States markets due to an enormous number of suppliers. It is not easy for businesses to establish themselves in the electrical goods market. Further, it is one of the best ways to understand the trends of electrical goods. Business is to check the US import-export data. After that, you can use effective data intelligence tools to generate valuable insights and make better decisions for your business.