What is Customs Broker?

Customs broker is a person who helps exporters and importers to send their goods from and to a country. This kind of broker must be licensed by the CBP or the Customs and Border Protections of that country.

Exporters and importers need the brokers because they are the ones capable to sealing deal with the CBP as well as making sure that the goods being imported and exported are meeting the requirement sets by government of the country, particularly CBP.

The responsibility of being customs brokers is quite immense. It is because sometimes the goods being imported and exported are very valuable. They cost a lot of money to purchase. The client expects brokers to make the best out of the goods and get huge financial return. This is why the broker must be someone clever, expert in negotiating, and at highly educated. In addition, they should have huge expertise in analyzing taxes.

Customs Broker Definition

When it comes to the official definition, customs broker is someone or a company working to give assistance to importers and exporters in order to meet the governing requirements of imports and exports established by government of that country. All brokers must attain legal permit or license from the Customs and Border Protections or CBP of the country.

What Does a Customs Broker Do? Example


1. Prepare the paper works

There are several major job descriptions that a custom broker must do. The most important one is probably to prepare the documentations about the export and import process. The broker will have to make sure that the paper work is done properly. They will also have to check everything related to shipments. Furthermore, the shipments must meet all the established requirement of the origin country.

2. Determine the fees and taxes

A custom broker will also have to determine the taxes and fees or the imported and exported stuff. Besides, they still have the smaller job like client meetings, coordinating storage and transportation, and also finding legal aid, including an attorney to help sealing deals with companies.

The example of usage of custom brokers is when a Canadian furniture company wants to export their products to the USA. They find a US company who want to receive their goods. The Canadian company, now an exporter, needs to communicate to the US Company or the importer. They will need to establish agreement on sale, transaction details, and many more. Instead of dealing with all these on their own, they simply use the help of custom brokers.

Also read "What is Commodity Broker? Definition and Example".