Capital
Washington, D.C.
Currency
USD
Languages
English (+ Spanish, others)
Population size
330 million
Average Monthly Salary
~$3,200
Region
North America
Gift Giving Norms
Useful, moderate gifts
Major Corporate Gift Days
Year-end holidays (Thanksgiving, Christmas)
Customs Complexity
Complex (federal & state)
VAT - Standard Rate
No national VAT; sales tax 0–10% by state
Duty Free Threshold
$800
Ave Duty Rate
Varies by state
1. Employee Merch vs. Gifts
Under US federal law and state regulations, non-cash benefits provided to employees can be taxable if they do not meet certain exceptions. The Internal Revenue Service (IRS) sets overarching guidance on whether merchandise is an employee perk or an essential business tool. However, different states and localities can add further nuances.
1.1 Merchandise for Employees
Work-Related (Generally Non-Taxable)
Uniforms & Essential Equipment
If branded clothing or necessary work accessories (e.g., mandatory uniforms, safety apparel) are provided and required for daily tasks, they are typically not included in the employee’s taxable wages.
Branded Office Supplies
T-shirts, pens, or mugs displaying a clear company logo—consistently given to all staff—can be excluded from taxation if their purpose is strictly corporate identity or work environment rather than personal use.
Potentially Taxable Benefits
High-Value or Personal Goods
Electronics, premium apparel, or items not directly tied to the job may be considered part of the employee’s taxable income. Employers must handle the associated withholding (e.g., under Federal and state income tax, plus payroll taxes).
Frequent Gifting
Multiple gift distributions in a tax year might raise concerns over hidden compensation. Seek local payroll or tax advice if you plan repeated merchandise drops, especially if the combined value is substantial.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
The IRS generally restricts the annual deductible amount for business gifts to $25 per recipient. This threshold has not been updated for many years, so many companies find it low. Some items—like widely distributed, branded promotional merchandise of nominal value—can be classed outside this limit if they meet strict conditions.
Compliance & Anti-Bribery
US law (including the Foreign Corrupt Practices Act for certain cases) can be stringent on bribery, especially where government officials or regulated industries are concerned. Maintain clear records for significant or repeated gifts to avoid any appearance of impropriety.
1.3 Marketing Merch
Promotional Merchandise
Items (for instance, branded T-shirts, stationery) handed out at fairs or corporate events normally qualify as marketing expenses if each piece is of nominal value, widely distributed, and features your branding. Keep supporting documentation such as invoices and distribution details.
2. Shipping, Customs & Duties
2.1 Shipping
2.2 Importing
Customs Duties & Tariffs
The U.S. applies import duties based on the Harmonized Tariff Schedule (HTS). The tariff rate depends on the product category and country of origin. Certain countries benefit from trade agreements (e.g., USMCA for Canada and Mexico), reducing or eliminating duties.
Regulatory Compliance
Imported goods must comply with U.S. regulations, including safety standards, labeling requirements (e.g., FTC, FDA for specific products), and potential licensing for restricted items. Importers must ensure proper documentation, such as the Commercial Invoice and Bill of Lading.
Customs Processing & Logistics
Customs clearance is managed by U.S. Customs and Border Protection (CBP). Importers can expedite clearance through programs like the Customs Trade Partnership Against Terrorism (C-TPAT) or by using a customs broker. Delays can occur due to inspections or incomplete documentation.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
The sender covers import duties/taxes, simplifying the process for US recipients.
Delivered At Place (DAP)
The recipient pays duties/taxes on arrival, leading to possible billing surprises or delays if they are unprepared.
2.4 With Monday Merch
Because the United States imposes duties and can have complex customs procedures for imported goods, we (Monday Merch) partner with local producers within the US.
This local sourcing approach:
Avoids import duties and customs bottlenecks for standard merchandise.
Shortens lead times, helping ensure quicker deliveries across states.
Ensures easier compliance with US safety/labelling regulations.
3. Cultural & Local Etiquette
3.1 Gifting customs
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
6. Summary and Key Takeaways
6.1 Summary & Takeaways
7. Frequently Asked Questions
7.1 Questions & Answers
Do employees pay tax on branded T-shirts?
Not usually if it’s mandatory or clearly branded for work identity; high-value/personal items may be taxed as wage benefits.
Are B2B gifts deductible in the US?
Yes, generally up to $25 per recipient per year, though widely distributed, low-cost branded items can be exempt.
How does shipping work within the US?
We use local production to avoid import hassles and expedite interstate shipping. Sales tax may apply depending on destination state.
