FAQ: What Is A Customs Brokerage In Logistics?

Customs brokerage is the process by which goods are cleared through customs barriers for imports or exporters. The people who facilitate customs clearance are typically called “customs brokers” and, in the United States, they must be licensed by the U.S. CBP to be able to assist with imported goods.

What does a customs brokerage do?

Customs brokers are private individuals, partnerships, associations or corporations licensed, regulated and empowered by U.S. Customs and Border Protection (CBP) to assist importers and exporters in meeting Federal requirements governing imports and exports.

What is customs brokerage and freight forwarding?

While freight forwarders act as intermediaries between a business and a transport company, customs brokers are an intermediary between a company and the customs department of the United States government. Freight forwarders cover a wide range of duties within the field of international transport.

What are the roles of customs broker in managing supply chain?

Customs Brokers assist their clients by liaising between shippers and government agencies. They will ensure shipments meet all legal requirements, organize and submit necessary documentation, and review packing lists and commercial invoices to verify that taxes and duties have been properly calculated and paid.

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What is the difference between a customs broker and freight forwarder?

Freight forwarder is a wide-ranging term, whereas a customs broker is very specific—among other requirements, U.S. customs brokers must be licensed. Customs brokers focus on the import side of an export transaction. For exporters, the customs broker is a foreign country conversation.

What do customs brokers charge?

Costs that importers always pay US Customs collects this fee on most shipments that enter the country. It’s calculated at 0.3464% of the entered value (the cost of the merchandise, as entered on the commercial invoice you provide to your customs broker), with a minimum of $27.23 and a maximum of $528.33.

Do customs brokers make a lot of money?

Earn $9,000 More Than Customs Brokers While independent customs brokers made $55,000 in 2014, customs brokers earned average annual salaries of $46,000 the same year, according to Indeed. Independent customs brokers are more experienced than customs brokers, which is why they earn higher salaries.

Are Customs Brokers Necessary?

There is no legal requirement for you to hire a Customs Broker to clear your goods. The importer is always ultimately responsible for knowing CBP requirements and for ensuring their importation complies with all federal rules and regulations, but using a Customs Broker can save you from making costly mistakes.

What is the difference between an exporter and a freight forwarder?

A freight forwarder—also called a forwarding agent or freight forwarding company—arranges transportation on behalf of shippers. The shipper—or in the context of international shipping, the exporter or consignor—is the party that owns or supplies the products being shipped.

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Do I need a freight forwarder and customs broker?

No, you can complete the customs requirements yourself – there’s no requirement to use a broker. However, international trade is very complicated so many businesses choose to leave it to a customs broker because they have the expertise.

How do I find a customs broker?

To be sure a customs broker is still licensed with CBP, visit the cbp.gov webpage Find a Broker by Port. If the Custom Broker’s name is there, they should be legitimate, as this list is updated on a regular basis.

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