Reasons to Hire a Customs Broker
Date of Publication: March 11, 2021
When importing a product into the United States, there are dozens of laws and technicalities that might cause delays and complications at any part of the process. Fortunately, experienced customs brokers can help importing and exporting professionals navigate the process, avoid complications, and address issues before they arise. For professionals considering if they need the assistance of a customs broker, here is what to know about customs brokers, what they do, and how they can help.
What is a Customs Broker?
Simply defined, a customs broker is someone who arranges the customs clearance process for a shipment. They may be private individuals, partnerships, associations, or corporations, and are licensed and regulated by the United States Customs and Border Protection (CBP). While their services mainly include submitting necessary information and payment to CBP, customs brokers also have in-depth knowledge about every step of the importing and exporting process, including:
- Entry procedures
- Admissibility requirements
- Classification and valuation
- The rates of duty or other fees for imported products
According to CBP, there are around 14,454 customs brokers in the United States. All of them must be approved by CBP before they can work as a customs broker. Additionally, they must pass an examination to ensure their competency and understanding of international trade.
The Role of a Customs Broker
While the final goal of a customs broker is to help their clients clear their shipments with CBP at the border, they may help their clients with many other steps of the trade process. Some ways that a customs broker might help a client include:
- Ensuring products are correctly classified
- Reviewing commercial documentation to check for complicacy with any regulations or requirements
- Preparing and submitting necessary documents, such as country of origin marking, to CBP, plus submitting necessary payments
- Acting as a liaison between their client and CBP or other relevant agencies
- Helping clients find new and lucrative markets
Essentially, a customs broker acts as the middleman between their clients and agencies like CBP. By ensuring compliancy and handling the complexities of the import process, they work with clients to make sure all laws and regulations are being followed, which saves their clients from stress, delays, or complications as they bring products into the United States.
Reasons to Hire a Customs Broker
While it is not necessary for trade professionals to hire a customs broker, having the assistance of a customs broker can make a big difference. There are many reasons to consider seeking the help of a customs broker, but some of the most important ways they can assist are by helping their clients:
- Avoid unnecessary costs or delays
- Save time by handling paperwork, documentation, and communications with CBP and other agencies
- Correctly identify products
- Avoid audits, fines, or sanctions by ensuring verification and compliancy
By liaising with agencies, assisting with critical documentation, and keeping their clients educated about laws and regulations, customs brokers see their clients through each step of the trade process, working to make sure that their client’s products can enter the United States without delays or issues.
This content is intended for informational purposes. Due to the generality of this content, the provided information may not be applicable in all situations. We encourage the reader to review the most up-date-regulations directly with the U.S. government’s sources on customs brokers, which can be found here.