Importing and exporting is not a simple venture. This venture requires several steps that are needed and completed thoroughly. For instance, documents must be collected, filled, processed, and completed. Depending on what type of goods are involved, there are several responsibilities such as excises and taxes necessary to pay, a custom’s broker handles all of these procedures. International trade is also governed by a whole host of regulations that need to be followed accordingly to complete the venture.
Therefore, a customs broker is playing an intermediary liaison between the international merchant and the government’s customs department in the country of import.
The purpose of this article is to provide you with information regarding what a customs broker is.
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Related: About Us at Alba Wheels Up
What does a customs broker do?
A customs broker’s responsibilities entail assisting exporters and importers in meeting government guideline requirements regarding exporting and importing. This can be an individual, a licensed association or corporation, or a partnered group.
A customs broker prepares and submits the required information and payments on behalf of the client. They have a tremendous amount of knowledge regarding classification, procedures, admissibility, evaluations, applicable fees and taxes, and the rates of duty for imported or exported merchandise of countries globally.
Knowledge of regulatory import practices
Knowledge of importing refers to understanding entry requirements, entry procedures, valuation, fines, classification, penalties, rates, duty taxes, and imported goods fees. Therefore, a customs broker submits the necessary information and appropriate payments to the port of customs on behalf of its clients and charges the clients a price for this service.
Skills to navigate the customs clearance procedure
A customs broker is licensed to perform many different business or import products, usually international. The critical portion of their job is processing the requirements for customs entry. A customs broker must complete all of the entry procedural preceding steps before customs release the shipment for delivery.
Customs regulations are intimidating, with special provisions and exceptions that may or may not apply depending on what is items are being imported, how it is made, where it comes from, and how it will be used. At Alba Wheels Up you receive personalized attention to ensure your company’s shipments are completed successfully.
Reduce costs down the road
Many businesses hire custom brokers to avoid the risks, costs of delayed shipments, or fines due to errors. As experts in this field, custom brokers can help you avoid costly delays, fines, confiscation of the merchandise, and other penalties. Ways to make money off of your homeland according to Forbes.
Verifying customs regulations
Businesses are legally responsible for all customs declarations prepared on their behalf. Incorrectly processed regulations can result in audits, fines, and even sanctions for businesses.
Centralizing paperwork pipeline
Current customs software allows the broker to transmit electronic customs clearance data to CBP, and other government agencies, providing efficiencies and minimizing delays in clearing shipments. Some brokers also maintain Electronic Data Management Systems (EDMS) that allow for better reporting and quick access to your customs documents, records, and invoices.
Correctly Identifying Items
Customs brokers are well informed with the Harmonized Tariff Schedule. This maintains a classification for each good. Since each good is assigned a specific classification number, they get divided into major groups and sub-groups, which allows them to correct and quickly identify and then charge the customs a fee. Take a look at this article from Forbes regarding How Changes In Customs Are Made.
Related: Core Experts
Why should I use a customs broker?
A customs broker’s primary job is to help clear shipments at country borders efficiently and timely. They ensure that businesses are shipping their goods within the evolving policies, and all the necessary procedures are completed.
They also prevent shipments from being delayed or placed on hold. For instance, if the required customs policies do not meet shipments, then the merchandise is held at the country’s customs. Until a resolution is met to correct the necessary procedures, the merchandise remains at customs. Therefore, to avoid such delays, it is in businesses’ best interest to hire a customs broker. Take a look at the customs services provided by Alba Wheels Up.
What is the process of becoming a customs broker?
To become a customs broker, first, you have to be a citizen of the united states and not be an employee of the federal government at the time of the customs broker exam. You must be at a minimum of 18 years of age. Also, you must take an exam to receive a license as a customs broker.
After passing the exam, you need to submit a license application and pay all required fees.
The cost for a broker license application is around $200. Other fees and proceedings include; a fingerprint check, background investigation, fingerprint analysis, and a review of character references, credit reports, and any arrest record.
Once the broker license application is submitted, it is reviewed and approved by Customs Border and Patrol (CBP). There are three review levels: a multiagency background investigation, a CBP port director secondary background investigation who, upon approval, forwards a recommendation to CBP headquarters in Washington, D.C. The Assistant Commissioner, Office of International Trade, will advise you on whether your application is approved.
It takes a while to complete the application for a license because it can vary depending on multiple factors. However, in general, the estimated time is around six months.
In comparing a customs broker and a freight forwarder?
It is only a natural question to ask yourself since the two professions’ job descriptions are similar. In comparing the two, the differences are:
- A customs broker is more specific than a freight forwarder. U.S. customs brokers must be licensed.
- Freight forwarders are experts who concentrate on the logistics and physical transportation of cargo. They are in touch with carriers and logistics providers who handle shipments’ transportation via trucks, boats, planes, or combinations.
- Many freight forwarders can be customs brokers; however, not every customs broker can be a freight forwarder.
- Customs brokers mainly focus on the import side of an export transaction.
- An exporter’s freight forwarder can work with a customs broker to help facilitate issues with an export transaction.
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Conclusion
Collaborating with a licensed customs broker is a vital way to ensure that your goods are shipped correctly and efficiently. They will ensure that all import documentation is filed correctly, avoid penalties, and help imports arrive safely file paperwork and custom entries with U.S. Customs officials. Customs Brokers help businesses avoid any import process hurdles, therefore providing peace of mind to businesses.
We hope that we have achieved the objective of providing you with ample information regarding a customs broker.
Remember, our team of experts at Alba Wheels Up is here to help you with your shipping needs. Contact us today!
