Selecting a Customs Broker

Most international traders rely on the services of a customs broker to get their shipments cleared at the border.

For each of these transactions, reams of critical business data must be generated, about everything from country of origin and destinations, to suppliers, tariff classifications, routings, and intended use.

Traditionally, customs brokers pull that information together and clear the goods through customs. But many traders are learning that it is only part of the story. Customs brokers are now helping leverage that information into a strategic advantage, turning information into critical business intelligence. They are offering a growing range of specialized services to help traders develop new product lines, explore new markets, evaluate the impact of global change, and cut costs.

When selecting a customs broker, it is important to ask the following questions:

1. Does your firm have a specific area of expertise? How do you let your clients know of regulatory changes that affect the goods they import or export?
2. Do you have experience with and current knowledge of the goods that will be imported by my business? Can you provide me with some references from clients who import the same or similar items? What do you require from me to begin development of my database records or profile?
3. How will we work together to develop a compliance plan to clarify our responsibilities and minimize our potential exposure to penalties and shipment delays?
4. In countries where customs is a highly automated process, you should ask if the customs broker can communicate electronically with me, my vendors, carriers, customs and other government departments and agencies?  How can you help me prepare and comply with advance electronic information requirements?
5. How will you manage payments of duties and taxes on my shipments?
6. What are your fees based upon?  How do you define any “consulting” that may be required?  What are my billing options?
7. What information do you have concerning exporting that I can provide to my suppliers and other supply chain partners?
8. Are you affiliated with any foreign customs brokers? Carriers? Freight Forwarders?
9. Can you provide me with a regular report that details my import and export history?

Some additional information you should provide to your customs broker as a first step.
Details about the goods you import and export, including: who manufactures the goods, where the goods are manufactured, the end-use and/or user of the goods, and the value of the goods.