Can a Chinese brand open a shop on Faire?

It can apply. As of November 2026 China isn't on Faire's list of supported countries, but Faire says brands elsewhere may apply if they take USD payouts to a U.S. bank account and ship on their own. Approval isn't guaranteed, you can sell only your own brand, and goods sourced from other online marketplaces for resale aren't accepted.

Who pays U.S. duty when I ship from China to a Faire retailer?

Under Faire's rules the brand is the exporter and the retailer is the importer, and Faire's commercial invoice puts duties on the retailer, so the retailer generally pays duty and clearance fees. With the $800 de minimis exemption ended for all countries on August 29, 2025, small parcels are dutiable, which affects retailers' willingness to order.

Should a Chinese factory set up a U.S. company to sell on Faire?

For small tests, the Chinese company with a W-8 is enough. For long-term U.S. wholesale, the usual setup is a U.S. C corporation subsidiary that imports and ships from a U.S. warehouse, so retailers aren't importers and North American pricing applies. The costs are annual Form 1120 + 5472 filings, arm's length related-party pricing and state taxes in inventory states.

Chinese brands on Faire: 25%, W-8 and a U.S. company

A Chinese brand can apply to Faire, but on different terms from a U.S. brand. As of November 2026 China isn't on Faire's list of supported countries; Faire says brands from other countries may still apply if they take USD payouts to a U.S. bank account and ship orders on their own. Brands outside North America pay 25% commission on first orders and 15% on reorders. Shipping from China makes the brand the exporter and the U.S. retailer, usually, the importer paying duty. For the long run, most set up a U.S. subsidiary as importer and ship from U.S. inventory, which brings W-9, Form 5472 and transfer pricing duties with it.

Faire's rules for brands outside its supported countries

You can apply; approval isn't guaranteed. Faire's brand terms say it can accept only a limited number of brands at a time and isn't obligated to accept any applicant. The review looks at your full wholesale catalog, wholesale and retail prices, high-resolution images, order minimums and product compliance documents. Faire recruits independent brands: you sell only your own brand, and products sourced from other online marketplaces for resale and unauthorized rebranding are prohibited.

Payouts. Faire's Help Center says brands in countries outside its list must provide a U.S. bank account and are paid in USD by ACH. Services such as OFX can provide U.S. account and routing numbers, or you can use a U.S. company's account if you have one. Brands outside North America generally get two payout options: next day, at 3% of subtotal plus shipping, or 30 days with no fee.

Shipping. Brands outside the supported countries can't use Ship with Faire labels; they ship on their own and enter tracking themselves.

Commission. Brands outside North America pay 25% on a new retailer's first order (15% commission plus a 10% referral fee), and a second order from that retailer within 24 hours also counts at 25%; reorders are 15%. Retailers whose first order came through your Faire Direct link are 0% from then on.

Tax forms. Brands outside the U.S. complete a W-8 with the beneficial owner, country of incorporation and permanent address. Faire says sellers who aren't U.S. sellers and aren't paid in USD don't get a 1099-K; for brands outside the list paid in USD, go by what Faire actually issues.

Why shipping from China dampens orders

Faire's international selling guide says the brand is the exporter and the retailer is the importer, and Faire's commercial invoice puts duties on the retailer and supports only 6-digit tariff codes. In practice, a U.S. shop receiving your carton from China pays the duty and clearance fees itself.

The U.S. ended the $800 de minimis exemption for all countries on August 29, 2025, so small parcels are dutiable too. As of November 2026, Chinese-origin goods still carry Section 301 duties and some carry Section 232 duties. A small gift shop sees your wholesale price at checkout and a separate bill for duty and fees on delivery, which noticeably cuts orders. And since July 8, 2026, importers of CPSC-regulated consumer products must eFile certificate data at entry, which the brand must be able to provide.

Without a U.S. company, is there U.S. income tax?

It turns on whether you're engaged in a U.S. trade or business. A Chinese company shipping from China to U.S. shops, with no U.S. employees, office, warehouse or agents, is generally not engaged in a U.S. trade or business on those sales, so there is generally no U.S. income tax; under the U.S.-China treaty, business profits without a permanent establishment aren't taxed in the U.S. either. The profit is taxed in China.

Facts that change the answer. Keeping inventory in a U.S. warehouse, having people in the U.S. take orders, negotiate or sign for you, or running the business through a U.S. company in your name can make the income effectively connected, with a Form 1120-F to file. Filing on time preserves deductions and treaty claims. State taxes ignore the treaty, so inventory states need their own review of sales tax registration and income or franchise tax.

With a U.S. subsidiary

For long-term U.S. wholesale, the usual setup is a U.S. C corporation subsidiary that imports, holds inventory in a U.S. warehouse, applies to Faire, gives a W-9 and receives payouts into its own U.S. account. Retailers then get domestic shipments and aren't importers, Ship with Faire labels become available, and North American pricing applies: 15% plus $10 on first orders instead of 25%.

The costs come in three parts. Filings: a U.S. company 25% or more foreign-owned files Form 1120 with Form 5472 every year to report transactions with the Chinese parent, and each missed 5472 starts at $25,000; dividends are subject to 30% withholding, generally 10% under the treaty. Transfer pricing: the factory's price to the subsidiary must be arm's length, so a subsidiary that imports, warehouses and wholesales should earn a steady, reasonable profit, and under §1059A its inventory cost can't exceed the customs value. State taxes: wherever the goods sit, the subsidiary has physical presence. Faire handles sales tax on Faire orders as marketplace facilitator, but income and franchise taxes in inventory states stay with the subsidiary.

Example (hypothetical numbers, to show the method): a Chinese ceramic mug factory does $100,000 of Faire marketplace orders a year, $30,000 of them first orders. Shipping from China, commission is $30,000 × 25% + $70,000 × 15% = $18,000. Through a U.S. subsidiary shipping from a U.S. warehouse, commission is $100,000 × 15% = $15,000, plus $10 per first order (say 150 orders, $1,500), for $16,500. The commission saving is only $1,500, and formation, filings and warehousing may cost more. The real reasons for a U.S. company are that retailers no longer import, orders can grow, and the same U.S. entity can sell on other platforms. Testing small with the Chinese company and forming the U.S. company once orders build is a common sequence.

What about a foreign-owned U.S. LLC?

A U.S. LLC with one foreign owner and no Form 8832 election is disregarded for tax: it shouldn't give a W-9 under its own EIN, its foreign owner gives a W-8, and it files a pro forma 1120 with Form 5472 every year. Registering it on Faire as a U.S. brand with a W-9 sends the 1099-K to the IRS under the LLC's EIN while the LLC files only a pro forma 1120, a mismatch that invites notices. Electing corporate status on Form 8832 makes it a U.S. C corporation paying 21% federal tax, generally locked in for 60 months. Run the numbers before choosing.

The takeaway

A Chinese brand can test Faire with its Chinese company: W-8, a U.S. dollar account, self-shipping, 25% on first orders, and the reality that retailers pay the duty. To scale, set up a U.S. subsidiary as importer and plan Form 5472, transfer pricing and inventory-state taxes together.

Commission, payouts, sales tax and entity choice are in the Faire wholesale guide; filings for foreign-owned U.S. companies are in the U.S. subsidiary guide and the Form 5472 guide. Book a free 15-minute call or add WeChat YCLUSA.