Official comment
Arron,
Hard drives of any format can be used as a source drive provided they are readable by your OS. This means that you could have virtually any drive type, including FAT12, FAT16, FAT32, exFAT, NFTS, etc. If you want to use that drive in a CDJ or XDJ player, then you must have it formatted to either FAT32 or macOS Journaled (HFS+).
I expect that you would want to use the 1TB as your source drive, so just add the music from that into your rekordbox collection, then use the USB stick for export.
If you are having problems importing, please file an inquiry ticket here and our support team will gather some additional information to assist you in resolving this issue. Thanks!