International Shipping Intermediate

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:

  1. Pass the Customs Broker License Exam (CBLE)
  2. Submit to background check
  3. Be licensed by CBP (Customs and Border Protection)
  4. Maintain continuing education
  5. 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:

  1. Are you licensed and bonded?
  2. Experience with my product type?
  3. Port coverage where I ship?
  4. Integration with my systems?
  5. Communication process for issues?
  6. 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
Ready to ship? Ship internationally with confidence
Try Free