What is the role of customs brokers?

Role of Customs Brokerage Companies

Customs brokerage companies facilitate the shipping and distribution of products across international borders for individuals and businesses. Most people are unaware of the vast amount of goods and raw materials that cross these borders daily and the complexities involved in clearing these goods through customs authorities in various countries.

Facilitating International Trade

Each country has its own set of rules and regulations governing the import and export of goods. These customs regulations are constantly evolving, sometimes even daily. Customs brokerage companies are responsible for understanding these rules and ensuring compliance, streamlining the delivery of products as efficiently as possible for their clients.

Responsibilities of Customs Brokers

Customs brokers handle various tasks to alleviate the pressure on their clients, allowing them to focus on their core business operations. Their responsibilities include:

• Document Processing: Creating and processing export and import documents according to customs laws.
• Customs Clearance: Ensuring goods are cleared through customs and delivered to their destination.
• Tax and Duty Payment: Arranging for the payment of taxes and duties on shipments.
• Tariff Calculations: Calculating tariff and duty payments due on shipments.
• Documentation: Ensuring all necessary import documents, such as customs invoices and certificates of origin, are in order.
• Tariff Coding: Sorting goods according to tariff coding systems.
• Regulation Updates: Keeping up-to-date with changes in export and import laws through continuous learning.
• Client Representation: Signing documents on behalf of clients with power of attorney.
• Advisory Services: Informing clients about export and import restrictions, tariffs, insurance needs, and other customs-related issues.
• Bonds and Insurance: Arranging for bonds on imported items and assisting clients in obtaining them.
• Transportation and Warehousing: Organizing transport, warehousing, or distribution for imported or exported goods.
• Tracking Shipments: Monitoring the location of goods throughout the shipping process.
• Official Liaison: Meeting with officials to facilitate the clearance of goods at customs and quarantine.
• Cost Reduction: Advising on ways to reduce taxes and duties.
• Release Requests: Requesting releases from line carriers for frequent shippers of low-risk commodities.
• Freight Coordination: Contracting with freight forwarders for delivery services.
• Tariff Concessions: Applying for tariff concessions, duty drawbacks, and other refunds.
• Cargo Insurance: Insuring cargo against damage, loss, or theft.

Skills and Knowledge Required

Customs brokers must possess a variety of skills and knowledge areas, including:

• Written and Oral Comprehension: Ability to understand written and spoken information.
• Deductive Reasoning: Applying general principles to specific problems to derive logical answers.
• Clear Communication: Conveying information clearly both in writing and verbally.
• Attention to Detail: Maintaining order and accuracy in documentation and procedures.
• Industry Knowledge: Understanding transportation methods, English language, clerical procedures, legal codes, customer service, electronics, management, geography, mathematics, and economics.

Customs Brokers vs. Freight Forwarders

The primary difference between customs brokers and freight forwarders is their focus. Customs brokers handle the clearance of goods through customs, ensuring compliance with all regulations. In contrast, freight forwarders manage the logistics of shipping goods from point A to point B but typically do not handle customs clearance unless they also offer customs brokerage services.

Freight forwarders are experts in transportation and logistics, coordinating the massive movement of goods to ensure efficient and cost-effective delivery. They provide advice on shipping costs, necessary documentation, shipping methods, cargo safety, import regulations, and the impact of incoterms on international transactions.

Both customs brokers and freight forwarders require a high degree of attention to detail and expertise to assist businesses in navigating the complexities of international shipping.