A Customs Broker acts as an agent for an importer in conducting Customs business on their behalf. A Customs Broker can either be a private individual or a company. In order to be a Customs Broker one must be licensed by the Customs Service, U.S. Department of the Treasury. Specifically, a Customs Broker prepares and files the necessary Customs entries, arranges for the payment of duties found due, takes steps to effect the release of the goods in Customs custody, and represents their clients in custody matters.
A Customs Broker must have an excellent understanding of trade requirements and procedures and customs and tariff regulations. Furthermore, the Customs Broker will assist the client with advise on transportation options, types of carriers, and shipping routes. The Broker will also assist the client with exchange rates, appraisals, and proper classifications and duties. In dealing with Customs, the broker must be aware of any potential problem involving every entry item represented, including cargo handling. This includes all factors affecting appraisement, exchange rates and the many regulations concerning calculation of duties.
The complexities and dynamics of international trade are such that an importer will find it extremely advantageous to obtain the services of a customs broker in order to facilitate the importation of goods. The complexity of the job is evident when one considers that for every shipment entering the United States there are 500 pages of Customs regulations and thousands of tariff items to consider. The broker must be well-versed in determining proper classifications and dutiable value, and be fully aware of the vast number of commodities subject to quotas.
The customs broker must also possess a thorough knowledge of tariff schedules and Customs regulations and keep abreast of the amendments made through constant changes in the law and administrative regulations. The broker’s operation often transcends Customs, calling for contact with over 40 other government agencies, such as the U.S. Department of Agriculture (USDA) on meat importation, the Environmental Protection Agency (EPA) on vehicle emission standards or the Food and Drug Administration (FDA) on product safety.
For these reasons, the services of a Customs Broker are highly recommended to the importer.
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