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What is a Customs Broker?


Businesses frequently work with customs brokers while bringing goods into any country. The Custom Broker ensures her clients' shipments adhere to the rules and regulations that a country's Customs and Border Protection enforces. They assist clients in understanding rules about their imports, given that imports differ.

Licensed customs brokers stay current with the legislation governing global trade. These brokers manage the logistics of shipping goods across borders by serving as intermediaries between the federal government and import/export businesses.

Custom brokerage is one of the jobs with an almost even distribution in terms of gender. According to zippia.com, the ratio of men to women employees of customs brokers is 51:49 %

If you are a business person, have any interest in getting into the importation and exportation business, or have been close to someone who's already into it, you must have heard the word customs broker being used on many occasions.

Wondering what this means? wonder no more because this article will help you to understand what it's all about.

To understand what/who a customs broker is, you might want to know what Customs is all about.

Customs refers to an agency or authority in a country responsible for collecting tariffs and controlling the import and export of goods.

For this process of importing and exporting goods to be made easy, a customs broker is needed.



WHAT IS A CUSTOMS BROKER?

A customs broker is, therefore, a professional (individual or company) who provides expert services to facilitate the importation and exportation of goods.


WHAT DOES A CUSTOMS BROKER DO?

What exactly do these expert services of customs brokers entail, you might ask? Customs brokers perform various services, some of which are outlined below.

- Customs brokers process the necessary documentation needed to ensure that shipment meets all applicable laws for the importation and exportation of a particular good.

- They determine and track tariffs on goods, determine the taxes, and process payment on behalf of the client.

- Custom brokers attend meetings with Customs officials on behalf of their clients

- They coordinate the transportation and storage of the goods to safely reach the client.



HOW MUCH DOES A CUSTOMS BROKER EARN?

According to salary.com, the average salary of a customs broker in the United States of America as of 26th September 2022 stands at $82,926. The range varies between $71,433 and $95,153 depending on educational qualification, certification, and experience.

The employment rate for customs brokers in the United States of America in 2020 was 348,700 and is projected to be at 370,300 by 2030. That's an increase of 6% [careeronestop.org]

It looks like a fertile sector to venture into.



HOW TO BECOME A CUSTOMS BROKER

If this sounds like anything you might want to give a try, here's everything you want to know about becoming a customs broker.

To become a customs broker in the USA, the following criteria must be met

1. You must be an American citizen of 21 years old and above

2. You must not be a current federal government employee

3. You must possess good moral values.

If you meet the above eligibility requirements, in addition to your academic qualification (at least a degree in the related field of studies):

- You must first pass the customs broker license examination

- You must submit a Customs broker license application with the required fees

- Your application must be accepted by the US Customs and Border Protection (CBP)



WHY YOU NEED A CUSTOMS BROKER

All businesses that trade across international borders face one problem—how to effectively and expeditiously clear goods through Customs.

After learning about a Customs broker, you may want to consider the career path or seek the services of one for your import/export clearance. Here are some reasons why a customs broker is a necessity for any importation and exportation business:

For goods to be cleared at the port, there's a lot of paperwork involved—from submitting information related to the quality, quantity, and destination of goods to payment of tariffs and follow-up for goods to be cleared.

The customs broker steps in as an expert to handle this cumbersome process and help to trim costs. Below are ways a Customs broker can help importers and exporters.

❖ Evaluate goods that need to be cleared and ensure that they comply with all the necessary regulations of the country.

❖ Register entries of your goods with customs authorities.

❖ Generate an electronic entry for the consignment of goods if required.

❖ Ensure the customs authorities clear the goods quickly after verifying all the necessary documentation, and if required, follow up with them to ensure prompt delivery

❖ Provide a copy of the customs entry to you, including the receipts of the duties paid for clearing the goods from customs (transparency)

❖ International trade policies are quite strict, and shipments might get delayed even if one document is missing. This issue can be solved with the help of customs brokers because they know the rules and regulations and can keep the mandatory documents in order.

❖ There is a need for customs brokers if you plan to expand your customer base and focus on your core tasks. They know exactly what to do and will do it on time.

Now that you know who Customs brokers are and what they do, you can either be on yourself by fulfilling the conditions above or reach out to us if you need one.

Do you need customs brokerage or other Logistics services, Check out our services website.


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