12 Traits To Look For In A Customs Broker

Great custom brokers must be familiar with the customs laws, tariff schedule, specific regulations and restrictions for each type of import. Any errors in the clearance process can result in significant fines for the broker and the company. We list some tips for finding a great customs broker that results smooth brokerage process. Your customs broker is required to:

1. Be Techy

Technology is evolving and so are the ways we do business. Most manual procedures are being replaced by online programs. Digital technology makes it easier to submit documents, track the movement of goods, manage customs paperwork and stay current on latest trends.

2. Be Diligent

To ensure a problem-free import, brokers must always do their homework. They have to obtain detailed information about the shipment, review all applicable regulations, ensure proper classification and labeling and observe submission deadlines.

3. Be Accurate

It’s important to check if the goods come with any special requirements or restrictions.

For instance, alcohol, weapons, certain pharmaceuticals, animal products and chemicals need specific import licenses.

4. Be Ready

To avoid fines, delays, and damages to the cargo, the customs paperwork must be complete, accurate and submitted on time. The paperwork should include a detailed description of the goods, certificate of origin, packing list, bill of lading, SKU number and verified tariff classification number.

5. Be Wise

Broker pursuit ways to reduce import costs. Brokers should always check for ways to reduce import costs. For instance, certain goods qualify for preferential access, granted under so-called PTAs (preferential trade agreements). The import tariffs get reduced, but not completely eliminated.

6. Be Definite

To ensure compliance, brokers need to identify any errors in the original entries. Then they should submit them to Customs, corrected and within specified time frames. Things to check include origin, the number of items i.e. surpluses and shortages, value and tariffs.

7. Be Detail Oriented

Broker must keep detailed records of all shipments, from procurement to payment for 7 years. And this includes invoices, shipping records, proof of origin, markings, value adjustments etc.

8. Be Particular

Selecting a specialty field allows brokers to gain comprehensive knowledge about a certain area of import. Brokers specializing in clearance of certain categories of goods, shipment sizes, locations or transportation modes are in high demand.

9. Be Shrewd

Ensure a smooth broker-client relationship. To avoid disputes, broker’s responsibilities and terms & conditions must be clearly outlined. Doing this gives a clear definition of the scope of services.

10. Be Aware

International trade is a highly dynamic field. To avoid accidental non-compliance, brokers must keep up to date. Most of all it includes following international trade news, regulatory changes, and cross- border issues.

11. Be Honest

Shipments sometimes include free samples, but these also require a declaration. In other words, free stuff isn’t free when it comes to customs clearance.

12. Be Responsible

Trusted customs brokers must represent their clients to the best of their abilities. This includes full adherence to applicable customs laws. Any negligence can result in damage, delays and revenue losses.

Robert Roy works at an experienced freight forwarder company. He helps customers with their concerns regarding import and export process.