How do customs brokers work?
The job of your customs broker is simply to help you clear your shipments at the border. But, this is by no means a simple task. In the scope of achieving this for you, a customs broker will: Help your goods meet state requirements governing import and export and act as liaison between you and the relevant agencies.
According to Customs and Border Protection (CBP), you will need a customs broker if the goods you are importing are regulated by another government agency. However, even when one is not required, you may need a customs broker for tariff classification, document submission, post-entry services, and more.
Customs brokers may charge for services in various ways: Flat Fee: Some charge a flat fee for each shipment, regardless of its value or complexity. Per-Entry Fee: This fee is charged for each customs entry or declaration processed.
What they do. Businesses hire a broker to clear their goods through customs, which includes tracking shipments, filing customs entries, and paying duties and fees. Other tasks vary, depending on the size and type of the employer.
- You're Importing Internationally. ...
- 2 You Don't Want to Learn the Technicalities Associated with the Process. ...
- You Want to Avoid Costly Mistakes with Your Shipments. ...
- You Have a Relatively New Import Business. ...
- You Don't Have a License.
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.
As of Mar 25, 2024, the average annual pay for a Customs Broker in California is $76,041 a year. Just in case you need a simple salary calculator, that works out to be approximately $36.56 an hour. This is the equivalent of $1,462/week or $6,336/month.
As the largest customs broker in the world, DHL Global Forwarding has the network to facilitate the movement of goods no matter where you trade.
| Annual Salary | Hourly Wage | |
|---|---|---|
| Top Earners | $72,094 | $35 |
| 75th Percentile | $58,600 | $28 |
| Average | $52,129 | $25 |
| 25th Percentile | $43,000 | $21 |
Most often, customs brokers charge their fees based on the commercial value of the shipment they are clearing. Fees can be charged based on other factors too, such as the number of products on the invoices or disbursem*nts that are made on a client's behalf.
Who is the largest customs broker in the US?
Deringer is the largest privately-held US Customs broker and one of the top five entry filers in the US—filing over a million entries annually.
How much does a Licensed Customs Broker make? The average Licensed Customs Broker in the US makes $77,562. Licensed Customs Brokers make the most in San Jose, CA at $153,137 averaging total compensation 97% greater than US average.
You don't have to hire customs brokers. However, if you decide to submit all the documents independently, you are fully responsible for knowing the rules and regulations. You are also responsible for the accuracy of the information that you provide.
There is no legal requirement that importers must hire a Licensed Customs Broker to clear imports into the United States. Many successful importers, though, choose to utilize the services of Customs Brokers so their goods are imported properly without delays.
Broker-inclusive FedEx services
When you use a broker-inclusive service for international shipments with a declared customs value of USD $500,000 or less, FedEx defaults as the designated broker and will facilitate clearance using its U.S. Customs and Border Protection (CBP) bond.
Rules and regulations in cross-border transactions keep changing. As experts in the requirements for each type of goods, customs brokers can help you avoid costly delays, fines, confiscation of the merchandise and other penalties.
- Do they employ experienced employees where many hold customs brokerage designations?
- What are their methods of training and educating their employees?
As the world's largest customs broker, UPS draws on more than 80 years of experience and serves over 200 countries.
- Key Points:
- A customs officer examines your customs paperwork. ...
- Import duties and taxes are assessed using the customs paperwork. ...
- Customs requests payment for taxes and duties, if applicable. ...
- Your shipment clears customs once all duties are paid.
$96,223 is the 90th percentile. Salaries above this are outliers. $4,441 is the 25th percentile.
Is a customs broker the same as a customs agent?
Customs agents and customs brokers fulfill similar roles to each other and the terms are often used interchangeably.
The main difference between these two is on whose behalf they act. A customs broker acts on behalf of a client who has chosen broker's services, while a shipper's agent acts on the behalf of a shipowner or is hired by a cargo transporter.
Customs brokers are private individuals, partnerships, associations or corporations licensed, regulated and empowered by U.S. Customs and Border Protection (CBP) to assist importers and exporters in meeting Federal requirements governing imports and exports.
Customs brokers focus solely on imports. Companies exporting to international borders (even Canadian customs) will be dealing with a non-US broker. Freight forwarders may work with importers and exporters.
While a freight forwarder arranges for cargo to travel from an origin to a destination within a specific time frame, a customs broker is responsible for preparing and clearing a customs entry upon shipment arrival to a port of entry.
