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7 Tips to Choosing a Licensed Customs Broker

Clearing Customs can be one of the most complicated components in a business or individual’s supply chain. While there is no legal requirement to hire a Customs broker to clear one’s own imported goods, it is far more convenient and advantageous. A licensed Customs house broker is an individual or company that is certified by the Customs and Border Protection (CBP) to assist with the “clearing” of goods through Customs barriers for importers and exporters. The Customs broker is able to clear cargo through knowledge such as tariff and trade agreements, valuation and classification of goods, informed compliance, assessment of duties, and marking of imported goods on behalf of the client.

In the United States, there are approximately 11,000 active licensed Customs brokers. A licensed Customs house broker is knowledgeable about various rules and laws as well as penalties and fines. Consequently, the Customs broker would know what kinds of paperwork one would need and what type of entry to file with Customs. For example, a licensed Customs broker would know if a shipment would qualify as “personal effects” which is subjected to duty free entry as opposed to standard consumption entry which is more complex. Moreover, Customs house brokers may be able to help their clients cut various transportation costs.  Customs brokers are familiar with the Harmonized Tariff Schedule of the United States and the Code of Federal Regulations, which are the official guides to Customs regulations and trading—and a big headache to learn and tackle on your own. Furthermore, most Customs house brokers have relationships with many agents around the world to ensure smooth facilitation.

So now that you know the benefits of having a broker, you may ask where would you find a Customs broker that best fits your needs?  Follow the 6 tips below when searching for a licensed Customs house broker.

1. Check out logistics companies 

Most logistics companies, such as Spectrum Logistics, have many well-networked, licensed Customs house brokers that handle a variety of international transportation needs. 

2. Contact your local CBP office

Call your local Customs and Border Protection (CBP) office to provide you with a list of brokers licensed to work in their port. The CBP estimates that it will facilitate approximately $2 trillion in trade, which makes international regulatory and compliance with trade laws vital to the growth and security of businesses.

3. Verify the Customs broker is licensed

Usually the Customs house broker’s license number is on his or her website and business card, which you can use to find out more information by contacting CBP Broker Management at 203-863-6543.

4. Confirm the Customs broker has a national permit

A national permit will allow you to work with the same team of experts regardless of which area of the United States you import into.

5. Compare 3-4 Customs brokers

You don’t want to just stop at the first Customs broker you find—shop around for one that has the most competitive prices and unsurpassed service. Ask how the broker and staff stay current on regulation changes and continuing education. Non-licensed staff that are Certified Customs Specialists (CCS) offer better knowledge and skills to handle the import clearance process.

6. Search for partnerships

Find out who the broker has partnerships with. Most Customs brokers have partnerships with agents around the world to make transporting goods easier.

7. Ensure the Customs broker is customer centric

While you want an experienced and a reputable Customs broker, make sure that he or she is willing to be patient and answer all your questions—you would not want to be confused when importing high-value cargo around the world! Some questions you can ask the Customs broker are:

1. What documents are required to clear this cargo?
2. What are your payment terms?
3. What are your Customs clearance fees?
4. If any, what duties are required to be paid for this cargo?
5. Are there any applicable trade programs that will save or eliminate duty?

For more information about Spectrum Logistics’ Customs house broker services, email us at international@spectrumlogistics.us or call us toll-free 1-800-725-1225 and locally (904) 714-9355 and press 2 to speak to a global services representative.