The Role of a Customs Broker

A Customs Broker acts as an agent for an importer in conducting Customs business on their behalf. A Customs Broker can either be a private individual or a company. In order to be a Customs Broker, one must get licensed by the U.S. Department of Homeland Security. Specifically, a Customs Broker prepares and files the necessary Customs entries, arranges for the payment of duties found due, takes steps to effect the release of the goods in Customs custody, and represents their clients in custody matters. A Customs Broker must have an excellent understanding of trade requirements, procedures, Customs regulations, and tariff regulations. Furthermore, the Customs Broker will assist the client with advise on transportation options, types of carriers, and shipping routes. The Customs Broker will also assist the client with exchange rates, appraisals, and proper classifications and duties. In dealing with Customs, the Customs Broker must be aware of any potential problem involving every item represented, including cargo handling. This includes all factors affecting appraisement, exchange rates and the many regulations concerning calculation of duties.

 The complexities and dynamics of international trade are such that an importer will find it extremely advantageous to obtain the services of a Customs Broker in order to facilitate the importation of goods. The complexity of the job is evident when one considers that for every shipment entering the United States there are 500 pages of Customs regulations and thousands of tariff items to consider. The Customs Broker must be well-versed in determining proper classifications and dutiable value, and be fully aware of the vast number of commodities subject to quotas. The Customs Broker must also possess a thorough knowledge of tariff schedules and Customs regulations and keep abreast of the amendments made through constant changes in the laws and administrative regulations. The Customs Brokers operation often transcends Customs, calling for contact with over 40 other government agencies, such as the U.S. Department of Agriculture (USDA), the Environmental Protection Agency (EPA), and the Food and Drug Administration (FDA). For these reasons, the services of a Customs Broker are highly recommended to the importer.