Customs Broker
Also known as: Licensed Customs Broker, Customs Agent, CHB
Definition
A customs broker is a licensed professional authorized to act on behalf of importers and exporters to clear goods through customs. They handle the complex paperwork, regulations, and procedures that ensure your international shipments enter or leave a country legally.
What Customs Brokers Do
Documentation:
- Prepare customs entry forms
- Verify commercial invoices
- Classify goods with HS codes
- Ensure proper valuation
- Submit electronic filings
Compliance:
- Navigate import regulations
- Handle licenses and permits
- Manage restricted/prohibited items
- Ensure country-of-origin compliance
- Apply for duty exemptions
Problem Solving:
- Resolve customs holds
- Handle examinations
- Dispute classifications
- Manage audits
- Advise on regulations
When You Need a Customs Broker
Required situations:
- Commercial imports over $2,500 (US)
- Goods requiring licenses or permits
- Regulated products (food, pharmaceuticals, etc.)
- Complex tariff classifications
- Multiple country compliance
Beneficial even when optional:
- Frequent importing
- New to international trade
- Complex supply chains
- Time-sensitive shipments
How to Become a Customs Broker
In the US, customs brokers must:
- Pass the Customs Broker License Exam (CBLE)
- Submit to background check
- Be licensed by CBP (Customs and Border Protection)
- Maintain continuing education
- Renew license periodically
The exam has approximately 15% pass rate—it’s rigorous.
Customs Broker vs. Freight Forwarder
| Customs Broker | Freight Forwarder |
|---|---|
| Licensed for customs clearance | Arranges transportation |
| Focuses on compliance | Focuses on logistics |
| Works with government agencies | Works with carriers |
| Required for entry filing | Optional (convenience) |
Many companies offer both services.
Customs Broker Fees
| Service | Typical Cost |
|---|---|
| Standard entry | $50-150 |
| Complex entry | $150-300+ |
| Duty payment processing | $25-50 |
| Exam/inspection handling | $50-200 |
| Classification consultation | $100-300/hour |
Fees vary by complexity, value, and broker.
Choosing a Customs Broker
Key questions:
- Are you licensed and bonded?
- Experience with my product type?
- Port coverage where I ship?
- Integration with my systems?
- Communication process for issues?
- Fee structure transparency?
Working with Your Broker
Provide complete information:
- Accurate commercial invoices
- Product descriptions and compositions
- Country of origin details
- Previous classification rulings
- Special program eligibility (FTA, GSP)
Stay responsive:
- Answer questions quickly
- Provide documents promptly
- Review entries before filing
- Communicate changes immediately
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