Selling on Newegg in 2026: requirements, fees, Shipped by Newegg, Newegg Business, PC parts tariffs and tax planning for cross-border sellers

Newegg is a long-established U.S. retailer of computer hardware and electronics that runs both first-party retail and a third-party marketplace. Its buyers are PC builders, IT purchasers and small businesses. Traffic is far smaller than Amazon's, but order values are higher and the catalog is focused: sellers of graphics cards, motherboards, power supplies, cooling, peripherals, networking and server parts face fewer competitors here, and B2B orders are common. Whether it pays depends on whether your category is Newegg's home turf and whether you can live with its performance rules and your tariff costs.

Newegg Commerce, Inc. is headquartered in City of Industry, California, and listed on Nasdaq on May 20, 2021. Its seller pages (checked 2026-11) cite more than 2.1 million active customers, a $242 average order on Newegg.com, a $419 average order on Newegg Business and more than 350,000 verified business buyers. There are three storefronts: Newegg.com (U.S. retail), NeweggBusiness.com (U.S. business purchasing) and Newegg.ca (Canada); Newegg Global mirrors U.S. listings to 17 more countries.

• The opportunity: PC components, peripherals, networking and storage are largely supplied by factories and brands in mainland China, Taiwan and Hong Kong. Accessory sellers crowded out by big brands on Amazon are easier to find on Newegg. Newegg Business adds a quote feature where companies request bulk pricing.
• The bar: self-fulfilled orders ship within 48 hours with Newegg-authorized carriers only, and performance is measured on tracking, on-time delivery and refunds; computer products also have their own rules (below).
• New-seller offers: first-time sellers activated on or after April 1, 2026 who complete onboarding get rebates down to an effective 6% referral fee for 90 days; sellers who sign up through SellingPilot get three months of free Professional membership and three months of free SBN storage in Indiana. Conditions are on Newegg's pages and can change.

Description: each row is a checkpoint, with Newegg's requirement, the tax and government obligation, and what to decide before applying.

Checkpoint	Newegg side	Tax and government side	Decide early
1. Entity	U.S. company (EIN + W-9), or a company in mainland China, Hong Kong, Taiwan and other places (business license + W-8BEN-E)	U.S. company: state formation, registered agent, EIN; Form 5472 every year if foreign-owned	Sell through the Chinese company or a U.S. company; which form a foreign-owned LLC submits
2. Documents and review	Company proof, IDs for owners of 25% or more, bank proof; account manager review plus underwriting	Name, address and TIN must match IRS records or the business license	Company name and bank account holder identical
3. Insurance	May ask for a certificate within 30 days: $1,000,000 per occurrence, $2,000,000 aggregate	Premiums are deductible	Manufacturers also need product liability and recall cover
4. Logistics	Self-ship within 48 hours, or SBN	Physical presence in SBN warehouse states; who is the importer	DDP inbound, a customs broker and a duty budget
5. Payouts	U.S. ACH; abroad PingPong, Payoneer, LianLian, World First or wire	A wrong W-9 or W-8 holds payouts	Payout account in the entity's name
6. Sales tax	Newegg collects in 45 states and DC	Off-platform sales, income and franchise tax in inventory states are yours	Thresholds count all channels
7. Tariffs and product rules	Prohibited and restricted lists, GPU brand authorization, AI hardware limits	Section 301 and 232 duties; importer responsibility	Landed cost by HTS code
8. Books and returns	Settlement reports, transaction detail, reserved balance	Federal and state returns, 5472, annual reports; China sellers' income also reported to Chinese tax authorities	Monthly reconciliation and a filing calendar

Newegg sorts applicants by place of incorporation: United States, China, Canada, or another country or region. U.S. companies need an EIN, a W-9 and at least one proof document; companies in mainland China, Hong Kong and Taiwan need a business license (unified social credit code or registration number) and a W-8BEN-E, with a translated and notarized license if it isn't in English. Both routes disclose every owner of 25% or more and add a credit card that can pay international charges. There is no separate route for individuals.

The process: create a Newegg customer account, choose your place of incorporation and the storefronts you want (Newegg.com, NeweggBusiness.com, Newegg.ca), accept the seller agreement, and complete the business, ownership, store and financial sections. An account manager reviews the application and sets it to "New"; the underwriting team then checks it and, if nothing conflicts, sets it to "Active." Newegg says onboarding generally takes 3–7 business days.

Description: each row is a place of incorporation, with the tax form, company proof, owner details and payout options Newegg asks for.

Incorporated in	Tax form	Company proof	Owners and contacts	Payouts
United States	W-9 (e-sign online)	At least one: EIN confirmation letter (CP 575), articles, a business tax return, an LLC operating agreement	Every owner of 25% or more (or the controlling persons): ID, nationality, birth date, home address	U.S. bank account (ACH) with a voided check, statement or bank letter in the company's name
Mainland China, Hong Kong, Taiwan	W-8BEN-E (e-sign online)	Business license and number; optional photos of the factory, equipment, certificates, trademarks, inventory, and recent sales orders and invoices	Same	PingPong (mainland and Hong Kong only), Payoneer, LianLian, World First, or wire with an English bank letter
Canada, other countries or regions	W-8BEN-E	Local business license	Same	Payoneer, World First, wire and others
Newegg Business (U.S. sellers)	W-9	Proof of operations within the 50 states; proof of insurance	Same	ACH, paid weekly

• The legal-name field matters: Newegg says the legal business name must match the income tax return and should never be the name of a disregarded entity. That follows the IRS W-9 rules and hits foreign-owned single-member LLCs hardest; see the section below.
• Bank account holder: the name on the voided check or bank letter must match the registered legal name; with a payment service, the account holder must match too, and a Payoneer account can't be an individual account.
• Insurance: Newegg may ask for a certificate of insurance within 30 days: commercial liability of at least $1,000,000 per occurrence and $2,000,000 aggregate, a deductible no higher than $10,000, "Newegg Commerce, Inc., and its subsidiaries" as additional insureds, and product liability and recall cover if you make the products. The insurer needs an S&P or AM Best rating of A- or better.
• INFORM Act: Newegg rechecks seller information every June 1; sellers with more than $20,000 in sales over the past 24 months have their address shown on their seller page.
• Chinese company or U.S. company: applying with the Chinese company saves a layer, but once inventory sits in SBN warehouses and you sell in the U.S. year after year, U.S. income tax is still on the table (see "Selling through a Chinese company" below). If you already have a U.S. company for Amazon or Walmart, use it consistently, with the same tax form everywhere.

Newegg's platform charges come in four parts: category referral fees (10% for computer hardware, 8% for consumer electronics, 12% for most categories), a $0.29 order processing fee, membership fees by tier, and SBN fulfillment and storage if you use it. SKUs unsold for a year cost $0.005 a month each, and new items above your membership's listing cap are charged per item (from 2026-01-01, opt-in).

Description: each row is a fee with the amount and a note. Referral fees follow Seller Academy's referral fee table; the rest follow Newegg's seller pages.

Item	Amount	Note
Referral fee: computer hardware	10%	Most graphics cards, motherboards, CPUs, memory, drives, power supplies and cases
Referral fee: consumer electronics, phones, cameras, appliances, game consoles	8%
Referral fee: accessories, phone accessories, software, home, toys and other categories	12%	"Other" is 12% too
New-seller offer	Effective 6% for 90 days	First-time sellers from 2026-04-01; standard fee charged, difference rebated; exclusions apply
Order processing fee	$0.29 per order	All sellers, all orders
Unsold listing fee	$0.005 per SKU per month	Active SKUs with no sale for over a year
Membership: Non-Elite	No monthly fee; the membership page lists $0.99 per unique item sold	Up to 100 listings; limited API and reports
Membership: Professional	$49.95 a month	Up to 6,000 listings; 5% off SBN and shipping labels; 6-month commitment
Membership: Enterprise	$99.95 a month	Up to 12,000 listings; 8% off SBN and shipping labels; post-purchase email and more
Items over the listing cap	$0.30 / $0.25 / $0.10 per item	Non-Elite / Professional / Enterprise; from 2026-01-01, opt-in
Newegg Global orders	e.g. 10% for computer hardware and consumer electronics	All-in rate covering payment, currency and duty calculation

• Membership billing: charged to your card on the 21st of each month for the next month; Professional and Enterprise normally ask for a six-month commitment.
• Courtesy refunds keep the commission: a partial refund without a return doesn't refund the commission or the sales tax; RMA refunds follow the RMA rules.
• Keep the fee records: membership, SBN and advertising charges appear in Seller Portal's transaction detail; download them monthly for the books.

SBN is Newegg's warehousing and fulfillment service: you send inventory in, Newegg picks, packs and ships, and for SBN orders on Newegg.com Newegg also handles returns and customer service. The warehouses are in Ontario, California (three facilities) and Indianapolis, Indiana (one); the system recommends a warehouse and you can choose manually. International sellers should note that Newegg won't act as importer of record, inbound shipments must be DDP, and anything arriving with collect charges is refused.

Description: each row is an SBN charge with its size standard and amount. Weight is the greater of actual weight and dimensional weight (L × W × H ÷ 166).

Item	Standard	Amount
Small standard-size	Within 14.25″ × 9.5″ × 0.75″, up to 15.99 oz	$3.73 up to 10 oz; $3.93 for 10–15.99 oz
Large standard-size	Within 25″ × 17″ × 12″, up to 20 lb	$4.85 up to 10 oz; $7.30 for 1–2 lb; plus $0.52 per lb above 2 lb
Small oversize	Up to 60″, up to 70 lb	$10.21 plus $0.52 per lb above 2 lb
Monthly storage	Per cubic foot	$0.60 January–September; $2.40 October–December
Long-term storage	Over 365 days in any warehouse	$7.00 per cubic foot per month
Multi-channel order (standard-size, 5–7 days)	Orders from other channels shipped from SBN	$7.43 per order + $1.24 per unit + $0.74 per lb
Removal, disposal	Per unit	Return $0.80 plus shipping; disposal $0.26

• Importer of record: Newegg's international inbound guide says it won't be importer of record for any SBN shipment, of any size or value. A foreign seller without a U.S. entity can import as a non-resident importer through a customs broker holding a CBP power of attorney. Newegg can be listed as ultimate consignee only as "[Newegg entity] in care of SBN," and the broker must get the tax ID for clearance from the SBN team in advance.
• What DDP means: duties, import fees and freight are paid by you or your forwarder. If a forwarder "includes duty," the contract should say who is the importer, whose name the duty is under and who gets any IEEPA refund (see yclcpa.com/fba).
• No returns abroad: SBN inventory can't be sent back outside the U.S., only to a U.S. address or picked up; plan clearance or disposal before long-term storage starts.
• Lost and damaged units: items lost or damaged in the warehouse or in Newegg's transit are reimbursed at full replacement value shown on a valid commercial invoice; the reimbursement is income, booked together with the inventory write-off.
• State tax: inventory in California or Indiana means property in those states. California's $800 minimum tax and Indiana income tax filings depend on your entity and each state's rules (see the sales tax section).

Newegg reviews sellers monthly; a missed metric brings a warning, and two consecutive failing periods can cost selling privileges. Payouts are tied to tracking: ship with an authorized carrier, show delivery, and you're paid on the Wednesday after seven days have passed; Newegg also holds a reserve based on sales, returns and chargebacks.

• Metrics: seller rating of 3 eggs or above; order defect rate (negative ratings, unresolved guarantee claims, chargebacks) under 1%; pre-fulfillment void rate under 2.5%; at least 98% of self-shipped orders out within 2 business days; at least 95% valid tracking; at least 95% on-time delivery; refund rate under 2.5%; at least 98% of messages answered within 48 hours; fewer than one policy violation.
• Ship-by deadline: self-fulfilled orders must ship within 48 hours of confirmation; later orders can be auto-voided and aren't paid even if shipped.
• Payout timing: Newegg.com and Newegg.ca orders are paid the Wednesday after 7 days from delivery, typically 15–21 days after the order; Newegg Business after 25 days; with tracking but no delivery status, 30 days after shipment (45 for B2B); invalid tracking isn't paid. Payment requires a $25 balance ($100 for international sellers).
• Reserved balance: Newegg holds the greatest of: 10% of average monthly sales over six months, 10% of the latest month's sales, average monthly chargebacks, RMAs and claims over six months, the latest month's chargebacks, RMAs and claims, or open RMAs and claims. Orders marked "Blocked Due To Reserve" are held 60 days from delivery. In the books the reserve is a receivable, not an expense.
• Restocking fees: from 2025-11-01, for new graphics cards, hard drives, motherboards, TVs and projectors returned opened for a personal reason, sellers may charge up to 15%; up to 30% on Newegg Global orders.
• Warranty: you may offer third-party warranties on refurbished and used items; new items generally carry the manufacturer's warranty, except custom-upgraded parts. Refurbished items must meet Newegg's refurbishment standard (data wipe, cleaning, testing) and graded descriptions.
• Chargebacks: card disputes can stay open for about 90 days; you supply evidence by reason code, and lost chargebacks are debited from your account.
• Computer-specific rules: PCs must meet Microsoft's hardware compatibility requirements (no modified installs that bypass Windows 11 checks); only listed GPU brands are allowed; devices with restricted AI chips (such as NVIDIA H100 and H200) can be sold only in the U.S. and a few exempt countries; drones and parts without FCC authorization are prohibited. California Prop 65 warnings, California Energy Commission rules and the embedded-battery list are part of Newegg's policies too. For electronics certification and product compliance, see yclcpa.com/bestbuy; testing labs and lawyers make those calls.

Newegg Business is a B2B storefront run from the same Seller Portal: buyers are companies, schools, government and system integrators who request quotes and buy in bulk, at higher average order values, with slower payouts (25 days after delivery). The vendor route means selling wholesale to Newegg's first-party retail business: Newegg sets the retail price and is the retailer, and you are its supplier, paid for wholesale invoices.

• Newegg Business sellers: U.S. sellers show proof of operations within the 50 states and submit a W-9, bank, ownership and insurance details; sellers outside the U.S. use the global route. Newegg.com listings can sync to the B2B storefront automatically (listing, price, inventory and status set separately), and SBN inventory can be shared between B2B and B2C. With quotes, business buyers state quantity and a target price, several sellers bid, and the system picks a winner.
• Exempt business buyers: Newegg is the party collecting sales tax on platform orders. Newegg's help center has exempt organizations and resellers apply in their Newegg account with Newegg Inc named as the seller on the certificate, and Newegg reviews it; whether that covers third-party seller items is for Newegg to confirm. You collect resale certificates yourself only for wholesale orders you make off the platform.
• The vendor (first-party) route: handled through Newegg's Vendor Portal, on terms that aren't public and depend on the purchase agreement. Tax differences: you sell wholesale to Newegg, and Newegg handles retail sales tax; you generally won't get a 1099-K; and if goods are sold from China and delivered abroad, U.S. income tax works differently from selling out of a U.S. warehouse, depending on the delivery terms and where title passes.
• Doing both: keep pricing, inventory, returns and rebates for each channel in separate accounts so the same goods aren't counted twice.

Newegg is vertical: computer hardware and electronics, knowledgeable buyers, plenty of B2B orders, and fees close to Walmart's plus a per-order fee and memberships. Like Walmart and Amazon, it accepts Chinese companies directly. All of these platforms collect sales tax on their own orders; on 1099-K, Newegg's seller FAQ says it doesn't issue one, unlike the others.

Description: each row is a platform, with who can join, main fees, fulfillment, who collects sales tax, 1099-K and payouts. Figures are typical and vary by category.

Platform	Who can join	Main fees	Fulfillment	Sales tax	1099-K	Payouts
Newegg	Invite-only review; U.S. companies (W-9) and companies in mainland China, Hong Kong, Taiwan and elsewhere (W-8BEN-E)	Referral 8%–12% (computer hardware 10%); $0.29 per order; membership $0–$99.95 a month	Self-ship (48 hours) or SBN	Newegg collects in 45 states and DC	Seller FAQ says Newegg is merchant of record and issues no 1099	Wednesday after 7 days from delivery; 25 days for B2B
Amazon	Individuals or businesses, self-registration from the U.S. and most countries	Professional plan $39.99 a month; referral about 15% in most categories (8%–15% common)	FBA or self-ship	Amazon collects and remits	U.S. (W-9) sellers at $20,000 and 200 transactions	Usually 14-day cycles, subject to post-delivery holds
Walmart	Businesses: U.S. companies (EIN) or foreign companies from listed countries; track record required	No monthly fee; referral 6%–20%, mostly 15%; personal computers 6%	WFS or own U.S. warehouse	Walmart collects and remits	Payment provider issues to W-9 sellers at $20,000 and 200 transactions	Settlement cycles (see yclcpa.com/walmart)
Wayfair	Furniture and home suppliers, by application	Usually no commission: you quote a wholesale price, Wayfair usually sets retail	Supplier drop ship or CastleGate	Wayfair, as retailer, collects	Wholesale invoices, generally no 1099-K	Supplier payment terms
Etsy	Handmade, vintage and craft supply sellers, individuals and businesses	$0.20 per listing; 6.5% transaction fee; U.S. payment processing 3% + $0.25	Seller ships	Etsy collects	U.S. (W-9) sellers at the federal threshold	Seller-chosen deposit schedule
TikTok Shop	Local stores need a U.S. company or U.S. person; cross-border stores usually by invitation	About 6% in most categories, plus creator commissions	FBT or approved warehouses	TikTok collects and remits	W-9 sellers at $20,000 and 200 transactions	Seller Center settlement rules (see yclcpa.com/tiktok)

• Best Buy Marketplace: another electronics marketplace; for its onboarding and product compliance, see yclcpa.com/bestbuy.
• Temu, SHEIN, your own site: in fully managed models the seller mainly supplies goods, so the U.S. tax picture differs from selling on Newegg yourself; on a Shopify store you collect sales tax yourself (see yclcpa.com/shopify and yclcpa.com/stripetax).
• One company on several platforms: use the same tax form everywhere; you can't be a W-8 seller on Amazon and a W-9 seller on Newegg.

On sales tax, Newegg says it is the "seller of record" for sellers' products sold on its websites and calculates, collects and remits sales tax in 45 states and DC (Alaska only in certain municipalities). The seller FAQ still has sellers indemnify Newegg for any failure to charge or remit the right tax, and Newegg's INFORM Act page calls sellers the "retailer of record." Your sales tax work is mostly off the platform: your own site, in-person and wholesale sales, and the other taxes in inventory states.

• Platform orders: Newegg collects and remits. Sales tax shown in settlement reports is neither your revenue nor your expense; keep it separate in the books.
• Off-platform sales: economic nexus counts all channels, typically $100,000 of sales into a state, $500,000 in California, Texas and New York; some states count marketplace sales toward the threshold. North Carolina's rules are at yclcpa.com/salestax.
• SBN inventory is physical presence: inventory in California or Indiana means property in those states, with no sales threshold; P.L. 86-272 protects only sellers who merely solicit orders in a state, and stored inventory generally takes you outside it (details at yclcpa.com/fba).
• California's $800 minimum: if you are "doing business" in California (sales, property or payroll above the Franchise Tax Board's annually adjusted thresholds; inventory in a California warehouse is property), an LLC, S corporation or C corporation owes at least $800 a year.
• Texas franchise tax: SBN has no Texas warehouse today, but if you use a third-party warehouse in Texas, an LLC files Texas franchise tax reports; the no-tax-due threshold for 2026 and 2027 reports is $2,650,000.
• Treaties don't cover state tax: foreign companies and foreign owners still face state tax in inventory states.

Newegg's seller FAQ (checked 2026-11) says that because Newegg is the merchant of record, sellers won't receive a 1099 from Newegg and can download each settlement in Seller Portal. Whether or not you get a 1099-K doesn't change what you report: your gross sales, platform fees and refunds all go on the return, based on the settlement reports.

• The general IRS rule: a third-party settlement organization that pays sellers issues a 1099-K to W-9 payees with more than $20,000 and more than 200 transactions in a year (the federal threshold restored by OBBBA; see yclcpa.com/1099k). Platforms differ on whether they treat themselves as the payer; if Newegg starts issuing them, Seller Portal's tax documents decide.
• Sellers on a W-8BEN-E: generally outside 1099-K reporting. No 1099 doesn't mean no U.S. return; that depends on whether you have taxable U.S. business activity (below).
• Booking settlements: Newegg pays net. Book gross sales, then separate referral fees, order processing fees, membership fees, SBN fulfillment and storage, advertising, refunds, courtesy refunds, chargebacks, changes in the reserved balance, and SBN reimbursements. Path: Seller Portal > Reports > Payments > Settlements > View Transactions, then export.
• The other report for China sellers: under China's State Council Decree No. 810 on tax information reporting by internet platforms, Newegg reports mainland China sellers' identity and income (including refunds, commissions and fees paid to the platform, and transaction counts) to Chinese tax authorities every quarter; the first report, for July–September 2025, was due by October 31, 2025. Sellers who sell only on the U.S. site are included. Chinese filing questions go to a Chinese tax adviser; on the U.S. side, we recommend one set of books so both sets of numbers agree.

Not simply a W-9 in the LLC's name. A U.S. LLC with one foreign owner that hasn't elected corporate treatment is a disregarded entity; the W-9 instructions say a disregarded entity with a foreign owner should have the owner provide a W-8, not a W-9. Newegg's application page also says the legal name can't be a disregarded entity's. Newegg's U.S. route takes only a W-9, so settle the plan before filling in the form.

The common routes (the full analysis and a five-year tax comparison are in our guide at yclcpa.com/walmart):

• A. Elect corporate treatment on Form 8832: once effective, the LLC is a U.S. C corporation for federal tax and can submit a W-9 in its own name and EIN; it files a full Form 1120 + 5472, pays 21% federal tax, and withholds 30% on dividends to foreign owners (generally 10% under the U.S.–China treaty). Under Treas. Reg. §301.7701-3(c)(1)(iv), after a change in classification you generally can't change again for 60 months; the effective date can go back no more than 75 days before filing. Wait for the IRS acceptance letter before submitting the W-9.
• B. Form a new U.S. C corporation: it submits a W-9 in its own name and the LLC stays as is; transactions between the two need pricing and books.
• C. Apply through the Chinese or Hong Kong company: submit a W-8BEN-E, with no U.S. company; U.S. income tax depends on your U.S. activity (next section).
• What not to do: submit a W-9 with the LLC's name and EIN while filing only an income-free pro forma 1120 with the IRS. A W-9 is signed under penalties of perjury; mismatched platform and IRS records can bring 24% backup withholding, held payouts or IRS matching letters.
• Why the 5472 matters anyway: a foreign-owned single-member LLC with any transaction with its owner (capital, expenses paid) files pro forma 1120 + 5472 every year, at $25,000 per missed form (see yclcpa.com/5472). W-9 versus W-8 is covered at yclcpa.com/w8ben.

It depends on the facts. A Chinese company that sells on Newegg continuously, keeps goods in SBN warehouses and delivers to U.S. customers is likely engaged in a U.S. trade or business, with effectively connected income (ECI). Under the U.S.–China treaty, business profits are taxable in the U.S. only if attributable to a U.S. permanent establishment, and facilities used solely for storage or delivery of goods generally aren't one; but claiming the treaty generally means filing Form 1120-F with Form 8833, and state taxes aren't covered by the treaty.

• Trade or business (§864(b)): there's no dollar threshold; what counts is whether activity is regular, continuous and substantial. Regular retail sales plus U.S. warehousing and delivery are generally treated as a U.S. business.
• Source and ECI (§§861, 862, 864(c), 865): for goods bought for resale, source generally follows where title passes; for goods you manufacture, income is split between production and sales activity. SBN shipments to U.S. customers generally pass title in the U.S., and U.S.-source business income is generally ECI.
• Treaty Article 5: using facilities solely to store, display or deliver your goods, or keeping a stock of goods for those purposes, isn't a permanent establishment. SBN warehouses belong to Newegg, an independent service provider, not your agent. If you also have U.S. employees, an office or an agent who regularly concludes contracts, the answer can change.
• Filing: a foreign corporation claiming no permanent establishment generally files a timely Form 1120-F with Form 8833 (a corporation's failure to disclose costs $10,000 per failure). A foreign corporation without a U.S. office generally files by the 15th day of the sixth month after year-end (June 15 for calendar-year companies). Filing on time and accurately is what preserves deductions if U.S. tax is later found to apply; when in doubt, consider a protective return.
• W-8BEN-E or W-8ECI: Newegg's guidance asks foreign sellers for a W-8BEN-E. If your income is ECI, the IRS form that matches is W-8ECI. Payments for goods generally aren't FDAP income subject to 30% withholding, but which form you submit and how it lines up with your 1120-F position should be settled with a CPA before you apply.
• State tax: California, Indiana and other states look at inventory and sales; a foreign company can still owe state returns and California's minimum tax.

As of November 2026: most Chinese-origin PC components sit on Section 301 List 3 (25%), with some graphics cards, motherboards and cases relying on USTR's extended exclusions; a separate 12.5% Section 301 duty has applied since July 24, 2026; IEEPA tariffs were stopped by the Supreme Court and can be refunded; and the Section 232 semiconductor tariff covers only a narrow set of advanced chips. Whoever is importer of record pays the duty and claims any refund. Check rates line by line by HTS code and origin.

Description: each row is a tariff layer with its status, rate and effect on PC parts sellers. Exclusions and Section 232 scope change quickly; confirm by HTS code before ordering.

Tariff	Status	Rate	Effect on PC parts
Section 301 (2018 Lists 1–4A)	In effect	Generally 25% on Lists 1–3, 7.5% on List 4A	Computer parts such as graphics cards and motherboards (HTS 8473.30 and others) are mostly on List 3; List 4B, which covered laptops and desktops, never took effect
Section 301 exclusions (178)	Set to expire November 9–10, 2026; reports say USTR extended them on November 6 to January 9, 2027	Exempt from the layer above while in force	Some graphics cards, motherboards and cases are covered; check the exclusion's product description line by line
Section 301 (2024 increases)	In effect	Semiconductors (HTS 8541, 8542) 50% from 2025; non-EV lithium-ion batteries 25% from 2026	Check bare chips and batteries imported separately
Section 301 (forced-labor action)	In effect (from 2026-07-24)	12.5% on Chinese-origin goods, on top of existing duties	Whether exclusions also cover this layer needs confirming from the notice and your broker
Section 232 (semiconductors)	In effect (from 2026-01-15), phase one	25% on certain advanced computing chips and derivative products; exemptions include U.S. data centers, repairs, R&D and consumer applications	Ordinary consumer components are generally outside it; no broader phase two had taken effect as of November 2026
IEEPA tariffs	Stopped (Supreme Court, 2026-02-20)	Duties paid can be refunded through CBP's CAPE function	Only the importer of record or its broker can file
$800 de minimis	Suspended (since 2025-08-29)	Small parcels pay full duty	Direct-mail parcel costs went up

• Origin follows substantial transformation: a motherboard made in China and assembled into a PC in Vietnam or Taiwan is judged by where it was substantially transformed, not where it shipped from; goods originating in Taiwan or Vietnam aren't subject to the China Section 301 duties but face other tariffs (see yclcpa.com/fba).
• Who imports: Newegg won't for SBN. If your U.S. company imports, it registers with CBP and needs a customs bond for formal entries (generally over $2,500); a foreign company can be a non-resident importer through a broker. If a forwarder imports under DDP, duty and refunds are in the forwarder's name.
• Duty goes into inventory cost: duty, inbound freight and brokerage are capitalized and expensed through cost of goods sold, not deducted in the year paid. IEEPA refunds generally reduce cost of goods sold or count as income when received for goods already sold, and reduce inventory cost for goods still on hand.
• Related-party price and customs value: what a Chinese factory charges its U.S. subsidiary is both the transaction value for customs and the U.S. company's purchase cost. Under §1059A, inventory basis from a related-party import generally can't exceed the customs value. Too high a price means more duty; too low means more U.S. profit and income tax. Price at arm's length under §482, document it, and report the transactions on Form 5472 (see yclcpa.com/subsidiary).
• Other AI and chip restrictions: export controls and outbound investment rules aren't tax questions; lawyers advise on them (see yclcpa.com/aigo).

PC parts see more returns and warranty claims than most goods, so keep four things apart: refunds reduce revenue, returned units go back into inventory at realizable value, warranty repairs and replacements are deducted when they happen, and Newegg's charges and reimbursements are booked separately. For tax, you can't deduct estimated future returns or warranty costs up front; you wait for the actual refund, repair or replacement.

• Refunds and restocking fees: RMA refunds reduce sales for the period; restocking fees you keep are income. Courtesy refunds reduce revenue and don't refund the commission.
• Returned units: units resold as new go back into inventory; opened or refurbished units are valued at what they will actually sell for. Under Treas. Reg. §1.471-2(c), damaged or obsolete goods can be valued at bona fide selling price less disposal costs, with evidence such as actual offers or sales within 30 days.
• Warranty: in the books you may accrue a warranty reserve under GAAP; for tax, the economic performance rules of §461(h) generally allow your repair or replacement obligation to be deducted only as you provide the repair or replacement, so the reserve is adjusted on the return.
• Supplier credits and RMAs back to the factory: defective units returned to the factory for replacement or credit reduce purchases at cost rather than creating new income; with a related factory, look at it together with transfer pricing.
• Chargebacks and guarantee claims: lost chargebacks and Newegg guarantee payouts are period expenses or revenue reductions; book them in their own accounts so they can be compared with performance metrics.
• Reserve and SBN reimbursements: the reserved balance is a receivable held by Newegg; SBN reimbursements for lost or damaged units are income, with the inventory written off.

Start with who owns the business, whether profits stay in the U.S., and which other platforms you sell on. U.S. resident sellers often use an S corporation once profits are steady to save self-employment tax; a foreign owner's single-member LLC chooses among Form 8832, a new C corporation and the Chinese company's international route; a foreign company's U.S. subsidiary is usually a C corporation; and multi-platform sellers keep the same entity and tax form on every platform.

Description: each row is a seller profile, with the usual entity, the form submitted to Newegg, annual federal filings and what to watch. Run the numbers case by case.

Seller	Usual entity	Form to Newegg	Annual federal filings	Watch out
(a) U.S. resident (citizen, green card, resident for tax)	LLC to start; S corporation once profits are steady; C corporation to raise money or keep profits	W-9 (a single-member LLC's W-9 shows the owner's name on line 1)	Single-member LLC: Schedule C + 15.3% self-employment tax; S corporation 1120-S; C corporation 1120	Newegg says the legal name can't be a disregarded entity's, so follow the W-9 instructions; see yclcpa.com/scorp when profits justify it
(b) Foreign owner's single-member U.S. LLC	Form 8832 to become a C corporation; a new C corporation; or the Chinese company	W-9 after the 8832 takes effect; or W-8BEN-E through the Chinese company	C corporation: 1120 + 5472; disregarded entity: pro forma 1120 + 5472, owner possibly 1040-NR	A W-9 in the LLC's name without an 8832 won't match IRS records; full analysis at yclcpa.com/walmart
(c) Foreign company (including a Chinese factory) + U.S. subsidiary	U.S. corporation (Inc.), or an LLC taxed as a corporation	W-9	1120 + 5472; if the parent also sells directly, consider 1120-F + 8833	Arm's-length pricing between parent and subsidiary; §1059A caps inventory basis at customs value (see yclcpa.com/subsidiary)
(d) Multi-platform seller	One entity for everything, or separate companies by platform or brand	Same as other platforms	By entity	Same form on every platform; inventory states combined; reconcile Newegg from settlements since no 1099 arrives

More entity comparisons are at yclcpa.com/entity; where to form, yclcpa.com/llc; C versus S corporation, yclcpa.com/ccorp and yclcpa.com/scorp; ITINs, yclcpa.com/itin.

Example (hypothetical numbers, to show the method): a Shenzhen maker of CPU coolers starts selling on Newegg.com in 2027 through A Inc., a wholly owned Delaware subsidiary, with inventory in SBN warehouses in California and Indiana. A Inc. is the importer and buys from the factory at $18 per unit, which is also the customs value. Assume the cooler is Chinese-origin and subject to both the 25% and 12.5% Section 301 layers, 37.5% in total; it sells for $59.99 with a 3 lb billable outbound weight, within large standard-size. Actual duty depends on the HTS code and the entry.

At 30,000 units a year, product profit is about $363,900; after $120,000 of U.S. staff, software, insurance and professional fees (assumed), taxable income is about $243,900 and federal corporate tax at 21% is about $51,219, with California and Indiana taxes on top.

Set the purchase price higher or lower?

Raise the price from $18 to $22 and duty rises by $4 × 37.5% = $1.50 a unit, while the U.S. company's profit falls by $4 and its federal tax by $4 × 21% = $0.84: about $0.66 a unit worse overall, before counting the extra profit and tax in China. Declare $14 to customs to save duty while paying $18 in the books, and §1059A generally caps tax inventory basis at the customs value, so the extra $4 isn't deductible, on top of customs undervaluation risk. Bottom line: set one arm's-length related-party price, use the same number for customs, the books and Form 5472, and keep the pricing documentation.

What this company files each year

A Inc. files Form 1120 + 5472 (reporting purchases from and payments to its parent), plus California and Indiana returns; a new U.S. company in which a foreign person acquires 10% or more of the voting interest files BE-13 with the Bureau of Economic Analysis within 45 days. Dividends to the factory carry withholding, generally 10% under the U.S.–China treaty, reported on Forms 1042 and 1042-S.

The most expensive mistakes happen before you submit: the wrong entity or tax form, shipping before deciding who imports, pricing before adding up referral fees, SBN and duty. Work through the list below and most problems are solved before onboarding.

Description: read top to bottom; each row is what to do by that time and who receives it.

When	What to do	Who receives it
Before applying	Choose the entity: Chinese company directly, a U.S. subsidiary, or a foreign-owned LLC filing 8832 first; W-9 or W-8BEN-E; unit margin after fees, SBN and duty	YCL (complex cases: paid consultation at yclcpa.com/advisory)
Before applying	Documents: EIN letter or business license (English or translated and notarized), IDs of 25%+ owners, bank proof, a card for international charges; insurance quotes	You; insurer
Before applying	Importer and broker; HTS codes, origin and duty estimate; Newegg's restricted list and GPU brand authorization	Customs broker; lawyer
During review (3–7 business days)	Answer the account manager and underwriting; keep name, address and TIN consistent	Newegg
Before the first inbound	Create the SBN shipment in Seller Portal; arrange DDP; confirm which state's warehouse	Newegg SBN; forwarder
Monthly	Download settlements and transaction detail, SBN inventory and fee reports, ad invoices; reconcile the reserve	YCL
When nexus arises	Register for state taxes in inventory states (California, Indiana); register for sales tax where off-platform sales pass thresholds	State tax agencies
Quarterly	Mainland China sellers: Newegg reports the prior quarter to Chinese tax authorities; keep one set of books	Newegg; Chinese tax adviser
March 15	Forms 1042 and 1042-S for dividends	IRS
April 15	1120 + 5472, or pro forma 1120 + 5472; foreign corporations' 1120-F (April 15 with a U.S. office, June 15 without)	IRS
Every year	Newegg's INFORM recheck around June 1; state annual reports; insurance renewal	Newegg; secretary of state

• One entity, one tax form: keep Newegg, Amazon, Walmart, banks and payment services consistent.
• Run SBN numbers first: $2.40 storage in October–December and $7.00 long-term storage after a year eat slow-moving parts' margins fast.
• Keep the evidence: Newegg's written answers, W-9 or W-8 copies, the 8832 acceptance letter, customs entries and transfer pricing files.

Start with your current entity, where goods ship from, and which other platforms you sell on. Common situations:

• Situation A: a Chinese factory or trading company going straight onto Newegg. Apply with the business license and a W-8BEN-E; test with self-fulfillment, and before using SBN, arrange a non-resident importer and broker and assess U.S. income tax (1120-F + 8833) and state tax.
• Situation B: a foreign-owned single-member LLC already used for Amazon. Don't submit a W-9 yet. Compare an 8832 election, a new C corporation and the Chinese company (see yclcpa.com/walmart), decide, then onboard and update every platform together.
• Situation C: a Chinese factory with a U.S. subsidiary planning SBN and Newegg Business. The subsidiary imports; set and document related-party prices; register for state tax where SBN warehouses are; file 1120 + 5472 every year.
• Situation D: a U.S. resident building PCs and selling used and refurbished parts. A single-member LLC files Schedule C; describe items by Newegg's refurbishment standard; reconcile from settlements since no 1099 arrives; consider an S corporation as profits grow.
• Situation E: already selling, with payouts held or a large reserve. Check the payment-hold reason in Seller Portal (ownership, bank, W-9 or W-8); we handle the tax-form side, and your operations team handles performance and appeals.