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Just to clarify, I will be exporting Jewelry from India to US. It will be sold to US customers through my website and payment will be routed to me in an Indian bank. I am trying to understand if there will be any tax consequences (in US) for me from these online sales. .
sending small packets from india to my web site clients is expensive so i am taking a warehouse space so when the order comes warehouse people ship on my behalf.

yeap.............
we NEED HELP.....

it was a mistake sorry

Could you explain the reason for the arrangement you've outlined?

Here are the two more common ways an Internet seller in India would sell to U.S. customers:

1) The U.S. customer buys directly from you the seller in India, and the payment comes to your bank in India. You the seller ship the order directly to the customer's address through UPS or FedEx with a Customs Declaration attached (this document is prepared by the seller and shipper). The shipper bills the seller for the applicable shipping charges, import fees, and duties (a cost that you the seller would have built into your selling price). When the package enters the U.S., a Customs agent looks at the attached Declaration, inspects the contents if the package appears suspicious, and then clears it for entry - where the shipper on this end picks it up and delivers it to the customer.

2) The U.S. customer buys from an authorized reseller in the U.S. (an American company that represents you), and the payment comes to that company's bank in the U.S. The reseller compiles all the orders from all the customers across the U.S. that day, places one order for all that merchandise from you, and pays you for it with the payment coming to your bank in India. You ship the order to them by freight (air or sea), making it a point to keep the declared value of each shipment below $2,000 (more than that requires a "formal" entry with lots of time and paperwork). When the shipment enters the U.S., the reseller picks it up and clears it with Customs, or hires a customs broker to do that. The reseller then opens the shipment, and fulfills the individual orders from U.S. customers. In this case, your only customer in the U.S. is the reseller. All the individual customers who order your merchandise are actually the reseller's customers, and it is the resellers job to collect sales taxes, pay import duties, etc. -- not yours.

The advantage of #1 is that it is seamless and fast -- but it could be too costly for the type of products you have (the shipping charges you'd have to add in might be more than the cost of what the customer is buying). The advantage of #2 is that it's cheaper and simpler for you -- of course, you'd need a trusted reseller in the U.S. to handle business here, and there has to be a big enough profit margin on your products for both of you to make money from their sale.

The problem with what you've outlined is this: A U.S. customer buying directly from you overseas is, from a U.S. Customs' perspective, the official importer of what they bought (not the fulfillment agency you're working with). As such, the customer expects to receive shipping, tracking, and customs information from you the seller. Without that, they run the risk that their order will be hung up in customs and never delivered (or their worse fear, that the foreign seller never really shipped the item at all and just cheated them out of their money). For that reason, either of the two arrangements I described above are possibly safer.

If you choose the first option, be sure to make a secure payment option like PayPal available (so people who can't use their credit card for an overseas transactions can still buy from you).

I hope this information helps. Best wishes.

In which U.S. state is your fulfillment warehouse located? Whether or not they collect sales tax for items being shipped to customers within that state is a state law, not a federal law.

I can tell you that if the warehouse is in California or Texas, then the answer is NO, they do not collect sales tax on items where the seller is outside the U.S. and the warehouse is just shipping the order. If the warehouse is in Nevada, then they do not collect sales tax, but they must pay the state an equivalent "use tax" on each item shipped to a customer within the state (which is essentially the same amount as sales tax would be for a customer living in that county/city/tax district).

my warehouse is in OHIO

Hi,
Thanks for the emails and the help, THANK YOU very much.
Please let me know your details, we might need you again.

We want your services on a professional payment basis.
Is it possible???

Thanks once again.
naveen