A sauce maker in Kaohsiung had its FDA registration done and its labels fixed, and mailed samples full of hope to the buyer of a US Asian supermarket chain. The reply was three lines: “Please provide a COI naming us as additional insured, proof of your GS1 UPC, and a W-9.” Three terms they had never heard, and the deal sat still for two months. FDA is the government’s gate; these three are the channel’s gate — fail them and you cannot even sign the listing agreement.
Written by SKYCARGO INC, a US logistics company shipping between the US and Taiwan since 2014 and incorporated in the US in 2023, with warehouses in Oregon, Los Angeles and Taoyuan; it serves as an FDA U.S. Agent and can assist clients with USDA registrations and inquiries. More on this topic: US Food & FDA Compliance: The Complete Guide Index.
COI: the certificate of product-liability insurance
US channels almost universally require suppliers to carry product liability insurance, commonly from US$1 million per occurrence — large chains ask for more — with the channel named as Additional Insured. What you hand over is not the policy but a one-page certificate from the insurer: the COI (Certificate of Insurance).
For Taiwanese makers the options are: insure through a US broker (foreign manufacturers can be covered), or be brought under the extension of the US importer’s or distributor’s policy. Without a COI the US buyer will not shelve your goods — when something goes wrong, the lawsuit lands on them.
UPC barcodes: license through GS1, do not buy resold codes
US retail scans UPC codes, governed by GS1. The two ways to get them differ sharply: apply to GS1 US for your own company prefix (annual fee; the codes belong to your company and the database resolves to you), or buy cheap “resold barcodes” (one-time cost, but the prefix registers to another company). A corner store may not care, but chain retailers and Amazon increasingly verify against the GS1 database — a prefix that does not match your brand gets rejected. For a long-term US play, license with GS1 directly and plan your item codes once.
W-9 or W-8BEN-E: it depends on which identity collects the money
Before paying, the channel asks for a tax form:
- A US entity (you incorporated) → file a W-9
- A Taiwanese company collecting directly → file a W-8BEN-E (declaring foreign status)
Many procurement systems only accept W-9s — which circles back to the “do you need a US entity” question. One solution is the distribution model: a US-side distributor (or your agent) invoices the channel and files the W-9, and you ship to the distributor. This is the structure SKYCARGO customers use most.
Slotting fees and the invisible clauses
Common US supermarket commercial terms to know before you quote:
- Slotting fee: a new-item entry fee — mainstream chains run from a few thousand to tens of thousands of dollars per item; Asian-supermarket systems more often take a first-order discount instead
- Promotional allowances and rebates: annual contracts often build in percentage discounts
- Returns and destruction: who absorbs expired unsold stock — settle it up front
- Payment terms: 45 to 90 days is normal; your cash flow must carry it
These costs must be in the quote from the start — otherwise you clear FDA, insurance and barcodes, and die on margin.
The second-half document list
| Document | Who reads it | Without it |
|---|---|---|
| COI (with Additional Insured) | the channel | no contract |
| GS1 UPC and item data | channel / platform | cannot enter the system |
| W-9 or W-8BEN-E | channel finance | you do not get paid |
| Price list with allowance structure | the buyer | you negotiate blind |
| FDA three-gates file + labels | channel QA spot checks | delisting at any time |
SKYCARGO INC’s role in this stage: help you (or your US distributor) bring the goods in compliantly as the importer, and run warehousing and delivery to the channel’s receiving rules (appointment inbound, pallet specs, shelf-life standards). We act as Importer of Record for a client’s goods in one situation only: when we are your selling agent in the US — under a long-term agency agreement, actually finding buyers and taking orders for you in the US, paid a commission on sales, with warehousing, delivery and customer service continuing after import, and, for food, running the FSVP ourselves. We take these cases only when all of those conditions are met. We do not act as a nominal consignee, collect and forward payments only, or sign a power of attorney only. Put the listing documents and the logistics on the table with us together and we will reply within one working day with what is missing and how to fill it.
Insurance limits, slotting fees and payment terms vary widely by channel and category — these are common ranges, not a quote. For tax forms consult your accountant based on the actual collecting identity. For reference only.
