International trade realm has many rules, such as customs regulations, duties, compliance requirements. It is difficult to navigate, especially for those starting their sourcing business. But you don’t have to do it all on your own – there are professionals that can solve your importing problems. Let’s explore why you need a customs broker in your import business.
What is a customs broker – definition
One the things that importer has to do is to carry out customs clearance process upon importation. A customs broker is an agent who helps entrepreneurs with import customs clearance process using knowledge and experience.
If you source to the US and want to do a commercial (formal) entry
- for shipments valued at USD 2,500 and more, you must hire a broker
- for shipments that consist of controlled goods, you must contract a licensed customs broker regardless of the value
How many US licensed customs brokers are there?
To become a licensed customs agent, you must be eligible and:
- pass the Customs Broker License Examination
- submit a broker license application with appropriate fees
- be approved by the CBP.
There are about 16,000 active licensed customs brokers in the United States. Here are some reasons why you need customs broker’s expertise.
Benefits of contracting a customs broker
Import trade compliance – customs regulations and compliance
Even though legal acts about customs regulations are few clicks away, navigating the complex web is not easy. This is where customs broker comes into the scene, with his/her in-depth knowledge of tariff classifications, import laws, and trade agreements, ensuring that your shipments comply with all applicable regulations. Such customs agents make sure that you won’t end with penalties due to non-compliance, delays, etc.
Easier US clearance process
Formalities such as customs clearance can be a time-consuming process which involves a lot of paperwork and coordination with forwarders, carriers, customs officials and so on. Customs agents takes care of communicating with those involved, files required documentations, submits forms, so you can focus on your main tasks.
Save money on sourcing
If you run an importing business, you have to pay taxes. Customs agent can help you implement some schemes that lower your import duties and related taxes. Minimizing taxes and import duties is crucial for maximizing profitability in your import business. So even though you pay for customs broker services, they can help you save in the long run.
Free up your time with customs agent
A major perk of hiring a customs broker is having more time to focus on growing your business. When your customs agent handles the complexities of import logistics and compliance on your behalf, you can concentrate on business expansion opportunities and networking.
Why you need customs brokerage services
By partnering with a trusted customs broker, you mitigate risks, gain a competitive edge, and explore new opportunities for success in the global market. In some cases, you are required to hire a licensed customs broker. Don’t miss out on the potential!
You can find permitted customs brokers listing here.