6 Factors to Consider When Choosing a Customs Broker | PCBUSA (2024)

The Internet is amazing. At your fingertips, you instantly have access to knowledge about everything. Never before have we had this luxury of quickly and easily finding products, services or information.

So, here's a question... if you're busy surfing the net for a Customs Broker, does it matter where the company is located? Is it important that they are situated in your city? Is your decision based on the location of their offices?

10 Questions To Ask When Selecting A Customs Broker

Sometimes choices based on proximity are merely because of an assumed comfort factor. In short, an assumption that a company nearby is a better choice than a company a thousand miles away. To some degree, this decision may be valid if you will require frequent personal meetings, but what is reality today? Even if a vendor is local, how often do you have face to face meeting? The truth is that most of our communication is via phone, fax, or a myriad of electronic devices.

Probably to a larger extent, decisions are made on rational purchasing evaluations. In other words, it's less of where they are, and more a question of who they are and what services they can provide.

Factors To Consider

Knowledge

  1. Do they employ experienced employees where many hold customs brokerage designations?
  2. What are their methods of training and educating their employees?

Experience

  1. In which industries do they specialize?
  2. What is the average tenure of their clients?
  3. How long have they been in business?

Accessibility

  1. Do they operate 24/7/365?
  2. Are they easily accessible through a live reception service?
  3. Can you speak to a live person when needed?

Company Culture

  1. Are they customer service focused?
  2. Does their company emphasize detail, accuracy and compliance?

Credibility

  1. What are some unique situations where they have helped other companies?
  2. What are some of their notable achievements and successes?
  3. How would other related service providers (i.e. trucking companies) rate their company?
  4. Can they supply references?

Client Education

  1. What methods do they employ to update their clients?
  2. Do they provide trade compliance seminars or webinars?
Why Should You Work With A Customs Broker?

Let's go back to the misconception of making a choice based on the locations and/or number of offices of the customs broker. We need to dispel the myth that they need to have offices at every airport, ocean terminal or border point where your shipments are going to enter Canada or the U.S. Years ago this was an important factor as the clearances required a physical presence at every place.

Today, almost all commercial clearances in the U.S. and Canada are done electronically. This means that the customs broker

  • obtains the trade data (usually in the form of a customs or commercial invoice, and other supporting documents),
  • transmits the information to the respective customs agency (and other governmental agencies depending on the type of goods), and
  • requests the clearance of the shipment
  • they also "confirm" the entry electronically once the shipment has been released by sending a final declaration or customs entry to Customs.

Although the entry point into that country must be correctly declared to Customs, the act of transmitting the data could take place from any location. Now when you are looking for a dependable customs broker, you can broaden your horizons and explore the best alternatives.

6 Factors to Consider When Choosing a Customs Broker | PCBUSA (1)

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6 Factors to Consider When Choosing a Customs Broker | PCBUSA (2)

Taryn Hannah

CCS, CTCS

Canadian Operations Manager

Taryn Hannah is General Manager for PCB Canadian Operations, directly overseeing the Release, Trade Compliance, and Office Administration teams. Taryn has been a trade professional since 2005, specializing in strategic and operational process building and management. She began her career with PCB in release operations, which built a strong foundation in many entry modes. In 2010 Taryn became the Supervisor of our Trade Compliance Group, working with staff and clients to understand regulatory documentation, labeling, data, and timing requirements for all imports into Canada. Over the years, she has become an expert in Participating in Government Agency dealings and has been called upon to speak at events such as Vancouver Fashion Week and various customized courses for industry and associations. Taryn has been recognized for her expert knowledge by receiving the designations of Customs Compliance Specialist (CCS) and Certified Trade Compliance Specialist (CTCS) from the Canadian Society of Customs Brokers.

6 Factors to Consider When Choosing a Customs Broker | PCBUSA (2024)

FAQs

How to choose a customs broker? ›

Factors To Consider
  1. Do they employ experienced employees where many hold customs brokerage designations?
  2. What are their methods of training and educating their employees?

What questions to ask a customs broker? ›

Do your services cover both importing and exporting goods? Are you capable of arranging the transportation of goods by air, sea, ground, rail or even courier? Can you research previous customs entries in order to determine compliance and avoid exposure to extra duties or penalties?

How to evaluate a customs broker? ›

You should also agree on the key performance indicators (KPIs) that will measure the broker's performance, such as the accuracy of documentation, the compliance rate, the clearance time, and the customer satisfaction. Make sure the broker is up to date on requirements with customs.

Why would you need a customs broker? ›

Customs brokers make sure your shipments cross the border and reach their intended destination safely. They have the skills to facilitate the entire customs clearance process, regardless of the port of entry.

How do I choose my broker? ›

Choosing the right online broker requires some due diligence to get the most for your money.
  1. Step 1: Know Your Needs. ...
  2. Step 2: Narrow the Field. ...
  3. Step 3: Figure Out the Fees. ...
  4. Step 4: Test the Broker's Platform. ...
  5. Step 5: How Well Does the Stock Broker Educate Its Clients? ...
  6. Step 6: Ease of Depositing and Withdrawing Funds.

What are the qualities of a customs broker? ›

Analytical and problem-solving skills: Customs Brokers need to analyze complex customs laws and regulations, classify goods accurately, and identify potential compliance issues. They must possess strong problem-solving skills to address any challenges that may arise during the customs clearance process.

What do customs agents look for? ›

Generally, customs officers may stop people at the border to determine whether they are admissible to the United States, and they may search people's belongings for contraband. This is true even if there is nothing suspicious about you or your luggage.

What is the main role of a customs broker? ›

A customs broker, sometimes referred to as a customs agent or a customs services provider, is a company contracted to make sure the customs declaration is correct, duties and taxes are provided accurately, and payment is received so that goods can transit across borders smoothly and without disruption.

What questions do they ask at customs? ›

Officials will likely ask you questions (as deemed necessary by the process or official). What is the nature of your visit? How long are you staying? Where will you be staying?

What are the 6 methods of customs valuation? ›

There are 6 valuation methods:
  • The transaction value method.
  • The transaction value of identical goods.
  • The transaction value of similar goods.
  • The deductive method.
  • The computed method.
  • The fall-back method.

How do you evaluate a broker? ›

  1. 1 Track record. One of the most obvious ways to evaluate a broker's value and performance is to look at their track record. ...
  2. 2 Market knowledge. ...
  3. 3 Negotiation skills. ...
  4. 4 Communication style. ...
  5. 5 Fees and commissions. ...
  6. 6 Here's what else to consider.
Aug 17, 2023

How do you determine customs value? ›

Here, the customs value is calculated based on the cost of production of the goods being valued. This includes the profit and general expenses reflected in sales of similarly classified goods. Production cost: The value of materials, fabrication, and other processing involved in the production of the imported goods.

How do I choose a customs broker? ›

Here are five things to look for when selecting a customs broker for your cross-border LTL shipments:
  1. A customs broker that fits your specific needs will deliver more value. ...
  2. Find a broker who knows your industry and can handle your shipment volumes. ...
  3. Align the custom broker's locations with the ports you ship into.

What skills do customs brokers need? ›

Critical thinking and problem-solving are among the skills customs brokers need so that they can understand, and help clients comply with, import/export laws. They also must be able to communicate well to interact with customs officials, explain services and procedures to clients, and write reports.

Do customs brokers make a lot of money? ›

The salaries of Licensed Customs Brokers in The US range from $35,356 to $335,458, and the average is $77,562.

Can I do customs clearance myself? ›

If no arrangements were made to forward the goods to your door, you will need to either clear them through CBP yourself, in which case you will pay duty directly to CBP at the port where your goods arrived. Alternatively, you will need to arrange for a broker to clear your goods.

Can I use FedEx as a customs broker? ›

Ahead of shipping, you should take the following steps to keep your shipment on track when it reaches customs: Provide power of attorney. When taking advantage of a FedEx broker-inclusive service, you must issue a Power of Attorney to FedEx in order for us to provide service as your customs broker.

Is DHL a customs broker? ›

DHL Duty Drawback Services is a licensed customs brokerage firm with over 30 years of experience.

Can I use UPS as a customs broker? ›

UPS provides customs brokerage services for all your shipments. Some additional charges may apply when complex brokerage services are involved. Additionally, the length of time your merchandise takes to clear customs may originate warehouse charges.

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