Recently, more friends have expressed interest in bringing Korean cosmetics or snacks to sell in the U.S.

Seeing popular K-beauty or K-food on Instagram makes me think, "I could just buy a few boxes and resell them," and honestly, I've thought about it too.

However, upon further investigation, there are more hurdles to overcome than expected, so I want to summarize them here.

The first step is to register your business.

While you can import under your personal name, it's standard to create a legal entity like an LLC and obtain an EIN due to tax and liability issues.

The next challenging part is knowing the correct customs classification code, known as the HS code.

Even for the same cosmetic product, the applicable duty rate can vary based on ingredients or intended use, so if you get the code wrong, you could face recalculations and fines from customs later.

Since the Korea-U.S. FTA is still in effect, many items are exempt from basic duties as long as they meet the origin requirements.

However, in recent years, the U.S. government has started imposing additional tariffs based on national emergency powers, which are applied separately from FTA benefits.

So, relying solely on past customs calculations for your margins could lead to losses.

One common oversight for novice entrepreneurs is the de minimis rule, which allows for low-value imports to be duty-free.

Until a few years ago, personal imports under $800 were cleared without duties, but starting August 2025, this rule will be eliminated for all countries.

This means that the method of bringing in small quantities to avoid duties is no longer an option.

If the items are cosmetics or food, there's another hurdle: labeling and ingredient registration.

You can't just bring in the packaging as it is from Korea; you need to have an English ingredient list, origin labeling, and possibly FDA-related registrations to ensure smooth customs clearance.

If you plan to import a regular volume, you also need to prepare a customs bond.

The bond amount is typically set at either $50,000 or 10% of the previous year's total duties and taxes, whichever is greater, but you don't pay this amount directly; it's more like an insurance guarantee, so the actual cost is much lower.

If you're already feeling overwhelmed by this point, I recommend starting with a customs broker.

Trying to save on fees by doing it alone and making a mistake on a document could lead to customs delays that last weeks, resulting in much greater losses.

Logistics is also a concern from the start; air freight is fast but expensive, while sea containers are cheaper but take weeks.

When starting out, it's safer to test with a small air shipment, and if the response is good, then increase the volume with sea freight.

If you plan to sell using Amazon's warehouse, keep in mind that you also need to meet Amazon's own documentation and labeling requirements, adding another layer of preparation.

When calculating margins, many people only consider the product cost and air freight, but you need to factor in customs duties, bond costs, storage fees, and labeling costs to get the true numbers.

It's common to hear that initial capital requirements are higher than expected, as sample purchases and the first bulk order, along with duties and shipping costs, can drain your funds before any revenue comes in.

I've seen people rush to send deposits after hearing about cheap import agency deals or distribution rights, but it's safer to verify official documents and customs records before proceeding.

Many are surprised to find that the margins are thinner than they initially thought.

Still, I personally believe that following these procedures properly from the start will lead to long-term success.

It's better to take the time to set things up correctly at the beginning than to rush and risk having your goods held up by customs.