Who are custom brokers and what do they do

Download Who are custom brokers and what do they do

Post on 03-Jul-2015

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While we have a basic understand of what customs brokers.. we realy don't know how they improve the business processes of an import/export organization.

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<ul><li> 1. Who Are Custom Brokers and What Do They Do?Custom brokers act as agents for importers who do not want to go through the common customsshenanigans. A customs broker can therefore act individually or for a company but in both cases, thisagent will be responsible for conducting business on behalf of their client. In order to operate, a customsbroker needs to be licensed and this is done by the Customs Service to ensure that only legitimatecustom brokerage companies or individuals come in contact with those in the import and exportbusiness.What is needed is a deep understanding of trade agreements between different countries so that whenbusinesses want to export and import they will have someone to go to. Customs usually comes withplenty of regulations and trade requirements and going through it once is hectic enough.As a customs broker, an individual is responsible for not only managing the regulations, but alsoensuring that goods are transported to their destination. This means that custom brokerage companiesusually work with a transportation company in order to get the goods to their destination. Carriers andshipping routes are plenty but choosing the right one requires some knowledge of the industry inrelation to the goods being hauled.During this whole process the broker will have to settle appraisals, exchange rates, shipping routes andany other duty that may be required of them. When they deal with customs, brokers will have to beinformed about all relevant calculations affecting duty and if any problems arise involving entry ofcertain products, they will have to mediate between customs and the client.This takes a lot of pressure off the client moving the goods because international trade comes withcomplexities and dynamics that can interfere with a perfectly good business making it virtuallyimpossible to make any money. With even the simplest import into the country, there are about 500pages of regulations that need to be considered so that you do not break any laws and carryout what isrequired of you. Brokers know everything there is to know about the industry and will help you throughall the red tape so you can concentrate on other matters.Scammers also exist in the business so beware of custom brokerage companies which are not accreditedor brokers who are not licensed. Also, in addition to getting your goods past customs, you will need to</li></ul> <p> 2. involve another party; transportation company. Sometimes the broker will connect your goods througha third party to get them to the required destination. Since the company is liable for any damage or lossof goods, you can be assured that the shipment will reach its destination.All that is needed to become a customs broker in the US is a high school diploma and a training coursefor which you would most certainly be eligible. The information can be obtained online on the UnitedStates Customs and Border Protection website along with a list of the many ports you can work at.Online courses are convenient and fast so a lot of aspiring custom brokers prefer to take them. Alicensing exam is also required before the port can verify your credibility. You can apply for theexamination online as well for a standard fee, and hope for a notification saying you passed.When you pass the exam, you can then apply for a custom brokers license and wait to hear from theCustoms and Border Patrol Agency. Jobs are plenty for customs brokers because trade never really diesout. You can open your own agency or choose to work for one that is already established and has aguaranteed client base.</p>