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
€0
Ave Duty Rate
Varies by state
1. Employee Swag 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 swag is an employee perk or an essential business tool. However, different states and localities can add further nuances.
1.1 Swag 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 swag 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 swag 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 Swag
Promotional Swag
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
Global de minimis removal in progress—some countries' $800 threshold still applies unless grouped under US security tariffs.
2.1 Shipping
Given the large geographic area and state-by-state variations, shipping from one US location to another requires attention to:
Interstate Sales Tax
Different states impose varying sales tax rules. Generally, sales tax is assessed based on the buyer’s location (destination-based). Ensuring you collect or exempt sales tax correctly depends on whether you have a sales tax nexus in the shipping destination state.
Shipping Timelines & Carriers
Popular domestic carriers (e.g., UPS, FedEx, USPS) offer different transit times and rates. Delivery typically ranges from 1 to 5 business days for standard ground service, depending on distance.
Tracking & Logistics
All mainstream carriers provide end-to-end tracking. For high volumes or urgent deliveries, expedited shipping options can ensure prompt arrival—though they cost more.
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 swag.
Shortens lead times, helping ensure quicker deliveries across states.
Ensures easier compliance with US safety/labeling regulations.
3. Cultural & Local Etiquette
3.1 Swag customs
Diverse Cultural Norms
The United States is culturally diverse; preferences can vary by region and industry. Generally, functional, medium-value items are well-received, while extravagant gifts risk appearing awkward.
Gift-Giving Occasions
End-of-Year Holidays (Thanksgiving to Christmas/New Year) are common times for corporate gifting.
Some businesses also provide items for major events or staff anniversaries.
Focus on Utility
Gifts or swag that add real, everyday value typically suit American recipients across industries.
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
Eco-Friendliness
While the US has no overarching national packaging waste law, states (like California) impose stricter rules. Recyclable or minimal packaging resonates with environmentally conscious consumers.
Product Safety Labeling
For certain goods (electronics, children’s items), abiding by FCC, CPSIA, or other standards is vital. Labeling in English is generally necessary, though bilingual packaging can be advantageous in certain locales.
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
Data Protection
Collecting addresses for remote employees or recipients must consider state-level privacy regulations (e.g., CCPA in California).
Onboarding & Retention
Welcome kits (like branded T-shirts, mugs, notebooks) typically remain non-taxable if modest in cost and aligned with corporate identity or essential duties.
6. Summary and Key Takeaways
6.1 Summary & Takeaways
Employee Items vs. Taxable Benefits
Work-required uniforms or gear are typically non-taxable.
Personal or high-value swag can be taxable.
B2B Gifting & Marketing
IRS generally caps deductible gifts at $25/recipient/year, with some exceptions for widely distributed, low-cost branded swag.
Promotional items are marketing expenses if properly recorded.
Local Production Partnerships
We (Monday Merch) produce locally in the US to avoid customs complexities and expedite shipping.
If importing from abroad, US customs duties and relevant taxes apply.
Cultural & Practical
Americans appreciate functional, moderate gifts; extravagance may appear suspect.
Year-end (Christmas, New Year) is a big gifting period.
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 swag 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 the destination state.
Sources
IRS (Internal Revenue Service) – Info on business gifts, payroll taxes, and deductibility.
US Customs and Border Protection (CBP) – Guidance on tariff classifications, HS codes, and import processes.
Federal Trade Commission (FTC) – Resources on consumer protection, product labeling, and advertising rules.
Disclaimer
This content is for informational purposes only and does not constitute legal or tax advice. Always verify with IRS or a local US tax professional to ensure full tax compliance.
