Customs Broker
A licensed professional authorized to clear goods through customs on behalf of importers. In the US, customs brokers must hold a federal license and are responsible for correctly classifying goods, calculating duties, and ensuring regulatory compliance.
A customs broker is a licensed specialist who handles the complex process of clearing your imported goods through US Customs and Border Protection (CBP). In the US, customs brokers must pass a rigorous federal exam and hold a CBP-issued license. They serve as your agent at the border, submitting entry paperwork, paying duties and taxes on your behalf, and ensuring your imports comply with all applicable regulations.
The customs broker's responsibilities include: filing entry documents with CBP (the ISF/10+2, entry summary, and supporting documentation), classifying your products under the correct HTS codes, calculating and paying applicable duties and taxes, ensuring compliance with Other Government Agency (OGA) requirements (FDA, CPSC, EPA, FCC, etc.), managing examination and hold situations if CBP selects your shipment for inspection, and maintaining records for the required 5-year retention period.
Many freight forwarders offer in-house customs brokerage, which simplifies your logistics chain by having a single point of contact. Alternatively, you can hire an independent customs broker. The cost of customs brokerage is modest -- typically $100-$200 per entry for standard shipments, plus any examination or special handling fees. This is a small price for professional handling of a process where errors can result in penalties, shipment delays, or even seizure of goods.
Why it matters
Use a licensed customs broker for every import shipment. The $100-$200 per entry fee is trivial compared to the penalties for incorrect classification or missing compliance requirements. Many freight forwarders include brokerage in their service.
Practical Tip
Use a licensed customs broker for every import shipment. The $100-$200 per entry fee is trivial compared to the penalties for incorrect classification or missing compliance requirements. Many freight forwarders include brokerage in their service.
You'll hear this when…
When booking freight
“"Our freight forwarder asked which Customs Broker option we prefer for this LCL shipment."”
When tracking a shipment
“"The Customs Broker status shows the container departed the origin port on schedule."”
When managing delivery
“"We use Customs Broker for all inbound shipments to keep lead times predictable."”
Related Terms
Freight Forwarder
A logistics company that arranges international shipping on your behalf, handling booking cargo space, documentation, customs brokerage, and coordinating the door-to-door movement of your goods.
Harmonized Tariff Schedule
HTSThe US system for classifying imported goods and determining applicable duty rates. Every imported product is assigned an HTS code that determines how much customs duty you pay.
Harmonized System Code
HSAn international product classification system using 6-digit codes standardized by the World Customs Organization. The first 6 digits are universal; countries add additional digits for national tariff and statistical purposes.
Bonded Warehouse
A customs-approved storage facility where imported goods can be stored without paying duties or taxes until they are withdrawn for domestic consumption, re-exported, or destroyed.
Landed Cost
The total cost of a product delivered to your warehouse, including the product price, shipping, insurance, customs duties, customs broker fees, and drayage. The true cost you must use for pricing and margin calculations.
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