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Customs Broker: Meaning, Service and Charge

More and more companies start to expand their business by exporting cargo. Importers rely on the customs broker to integrate information and get shipments cleared at the border.

So what service do they offer? How to understand the role they play? We will detail explain the customs broker on this page.

What is a customs broker?

The customs broker represents the importer and exporter to clear the customs. Their work includes document preparation, submitting the necessary information, and appropriate payments to customs.

For many foreign trade companies, it is complex to handle all kinds of documents and forms for goods. And the customs requirements vary by country. It is prone to exporting delays if foreign trade companies are not familiar with the customs requirement. So they always have to find a customs broker to finish these works.

What is the difference between the freight forwarder and the customs broker?

Many people assume that the freight forwarder and the customs broker are two names for the same thing. But there are many differences between them. Including:

1. Different service. The freight forwarders are responsible for shipping cargo, including the loading shipping, booking the shipment spaceand so on. The customs brokers are responsible for clearing customs.

2. The business of the freight forwarding company is between the “shipper and the carrier”, while the business of the customs broker is between “the cargo owner and the customs of other countries”.

3. The freight forwarder can to be the customs broker, but not the every customs broker can be one good freightforwarder.

customs brokerage working in a container yard

What service does the customs brokerage offer?

After you contact the customs broker, the first step is to sign a power of attorney to the customs broker. Authorize them to transact with customs on your behalf.

When you want to export cargo to another country, the service customs broker offer includes:

1. Choosing the right HS code. HS code is the abbreviation of The Harmonization System Code; it is a system for tax rates applicable/refundable for the entry and exit of various products. It is the personal ID of the product.

2. Due to the HS code being complex, the customs broker will help you choose the right HS code.

3. Completes and transmits the Import Security Filing (ISF). This electronic document contains detailed information about the shipment; the exporter needs to transmit it to customs the day before the shipment of goods. But the customs broker can help.

4. Submit the customs clearance documentation. The customs clearance documents are the important link that decides whether the customs. There are many precautions when preparing the document. Such as some countries’ customs require a certificate of origin. The products with the battery need MSDS.

5. Arrange for necessary payments.

When do you need a customs broker?

There is no legal requirement that hires a customs broker when the cargo will be imported. Many successful importers avoid the delay of goods because they have found a professional customs broker. When you meet the situation below, think about finding a customs broker.

1. Importing goods from China

Importing cargo overseas is a detailed and complicated process that needs to calculate the kinds of customs fee and proper documents. If you have no relevant experience and save more time dealing with your business. It is highly recommended to find a reliable customs broker to help you.

2. Need the customs broker resource

The right customs resource is extremely important for importers. The various countries have different document requirements. You must file these importing documents properly to help you through customs smoothly.

1. Commercial invoice

2. Bill of lading

3. A packing list

If you do not know exactly what documents are required, it is highly recommended to find a reliable customs broker to help you.

How to calculate the customs broker fees?

The customs broker fee is actually the service fee for customs brokers to provide customs declaration services. The customs broker submits the necessary document declaration to the customs to smooth the cargo through customs. The carrier pays a certain fee to the customs broker. The customs broker fee has nothing to do with the value of the goods, but with the per-ticket price.

The composition of export declaration fees is affected by the type and nature of export goods. The design of the export declaration fee includes the following:

1. Manifest fee

2. Commodity inspection fee

3. Customs declaration fee

4. Port construction fee

5. Continuing cabinet fee

6. Continuation fee

The export declaration fee also needs to consider special circumstances. Under special circumstances, the country’s import and export customs will have special charging standards. Therefore, the specific fee depends on the specific situation.

ASL has built cooperation with many reliable customs brokers, such as ### , we assist the carrier make the material of the custom that complies with requirements. Contact us to enjoy smoothly customs brokerage.

What are wrongs in the customs brokerage process?

1. Document preparation is incomplete or wrong. Customs are very strict on the export of sensitive and dangerous cargo. The various countries have different requirements. The document prepared by a customs broker must agree with the customs requirement. If not, the cargo will be detained.

2. Customs declaration information error.  For example, the exporting cargo contains a battery or powder, but the information provided by the factory is normal cargo. After customs inspection, it is found that the real goods do not match the declared product name, and the goods will not be allowed to pass.

3. The customs code is wrong. The customs code is also the tax number, which is the core of the import declaration form and the customs’ judgment on the goods. The wrong code will cause the corresponding elements of the import declaration to be different, and even affect the import tariff rate. If the code is wrong, the customs inspection will find problems and require amendments or delete the order and reporting again, which will take more customs clearance time.

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