How to Legal Selling IT Equipment

Hey, have you fulfilled your legal obligation to sell IT equipment in the USA?

Like in Europe, there are legal aspects that must be met when selling new or used IT equipment. The basic legal factor is registration, which every producer/seller is subject to if they choose to sell their IT equipment. In addition, there are other factors like meeting the FTC requirements, FCC, UL standards consignment agreement and more.

And so, in this guide today, we are going to share some tips on how to sell IT equipment legally.

Legal obligations needed to sell IT equipment in the USA

• Registration for the sale of IT equipment 

Registration is usually the first and most crucial thing that you should do to ensure you are operating legally. In the US, there are also corresponding WEEE laws that apply in more than 20 states that govern the resale of electronic products.

If producers intend to sell televisions and their peripherals (game consoles, monitors, DVD players, printers, etc.) or computers (tablets, laptops, desktops, etc.), they are subject to registration. Keep in mind that depending on the state, the product scope will definitely vary.

Apart from registration, here are some of the key facets that you need to meet to ensure legal selling IT equipment:

• FCC Part 15
• Consignment Agreement
• UL Standards
• Electronic Children’s Products: CPSIA

So, let’s discuss each of these requirements.

• Meet FCC Part 15 requirements

If you are looking to import a product into the US market, ‘FCC title 47 CFR Part 15’ is a regulation you must comply with. Part 15 of FCC concerns the low-power broadcasting as well as spurious emission interference. This regulation, therefore, covers any electronic product fitted with radiators and CPUs with frequencies of 9kHz or higher.

Examples of products covered by this FCC regulation are:

• Cellular phone
• Bluetooth devices
• Computer desktop and laptop
• Wireless Lan devices
• Radio enabled devices

Therefore, to import and sell any of these products, you will need to get FCC certification for compliance requirements after getting them tasted by FCC-recognized testing companies.

• Consignment Agreement

If you’re an IT Equipment retailer and you are planning to test the market for a new product, then you can sign a consignment agreement with your new supplier. This agreement is primarily ideal if you want to avoid any upfront capital investment.

Consignment agreement comprises of a lot of things, such as Parties involved (buyer and seller), Item(s) for sale, Pricing and payments, Ownership, Expenses, etc. If you don’t know how to create this agreement, here is a consignment agreement template to guide you.

Can you use a consignment agreement when selling used IT equipment? Of course, you can.

Remember, if you plan to open a resale or thrift store for used IT equipment, you will need to meet some requirements. One of them is meeting the US’s Consumer Product Safety regulations regarding resale and thrift stores.

• UL Standards

Amazon is among many online retailers that usually ask for UL Standards for importers looking to sell IT equipment in US and international markets. This regulation that allows you to sell almost any electronic product legally comprises various UL standards.

Examples of these standards are:

• UL 2097 – Electronic equipment Standard used to check the use of double insulation systems.
• UL 60065 – Standard that checks electronic device safety requirements
• UL 1876 – Standard for isolating signal and feedback

You can achieve UL Certification through UL Classification, UL Recognition or UL Listing.

• Electronic Children’s Products: CPSIA

All children’s products have to meet this regulation, the one that doesn’t is considered a counterfeit product. Therefore, you must fulfil the CPSIA requirements in order to legally sell IT equipment that fits this category.

CPSIA comprise of the following requirements:

• Lab testing
• Periodic testing plan
• Children’s Product Certificate (CPC)
• CPSIA tracking label

How can non-American importers Sell their IT equipment in the USA?

For a fact, the American ecommerce market is quite huge compared to several other top markets. And so, it is understandable why you should also try venturing into this market.

In this part, we will just share the basics you need to know to start selling your equipment in the USA legally. Also, be sure to consult a lawyer and professionals before relying on this information.

With that said, here are the three key factors you need to know:

• You don’t need to open a US company to ship your good.

If you already have another company that will fulfil them, such as Amazon FBA, then you don’t need to have another company in the USA. Having a company in the USA is only an ideal move when you need to start working or employing people in the United States.

• No Income Tax to be paid

Another common misconception that most people believe is that you have to pay income tax when selling your products in the US market. The reality is, you only pay income tax if you work in the United States. However, you have zero income tax to pay if it is just shipping your IT products here.

In fact, the only main tax that you will have you pay is sales tax in the states where you’ve stored your products. And for states like Oregon with no sales tax, you will pay 0% sales tax.

• You will need Social Insurance Number, EIN, W-EIN, OR Customs Assigned Number

If you are shipping goods valued at over $2500, you will need any other above clearance certificates. However, if your shipment is below $2500, you don’t have to worry about this.

Mostly, if you don’t have a social insurance number or EIN, you will be recommended to get a Customs Assigned Number.

Overall, to get more information regarding taxes, legal requirements, and money (for non-American importers), check out Ecomcrew.com.

Final thoughts

Disclaimer: The content we have provided in this article is general information on selling IT equipment. But if you’re looking for detailed information, then you will need to reach out to your state’s legal firm or an attorney.

Overall, selling used IT equipment or new IT equipment online is relatively easy when done right. Contact legal experts to simply help you with that.