What does a US customs broker do?
What is a Customs broker? 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.
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.
A Customs Broker plays a crucial role in facilitating international trade by ensuring that goods comply with customs regulations and requirements. They are responsible for managing the import and export of goods, completing necessary paperwork, and coordinating with various government agencies and customs authorities.
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.
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.
- First, you must pass the Customs Broker License Examination.
- Second, you must submit a broker license application with appropriate fees.
- Third, your application must be approved by CBP.
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.
Unfortunately, most people who take the exam do not pass on the first try. In fact, it takes many applicants several attempts to pass the exam. The average pass rate is reported to be between 3-11%, regardless of the fact that the test is open book and open note.
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.
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.
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.
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.
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 the largest customs broker in the world, DHL Global Forwarding has the network to facilitate the movement of goods no matter where you trade.
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.
While freight forwarders act as intermediaries between a business and a transport company, customs brokers are an intermediary between a company and the customs department of the United States government. Freight forwarders cover a wide range of duties within the field of international transport.
The estimated total pay range for a Border Patrol Agent at US Customs and Border Protection is $67K–$112K per year, which includes base salary and additional pay. The average Border Patrol Agent base salary at US Customs and Border Protection is $86K per year.
| Annual Salary | Hourly Wage | |
|---|---|---|
| Top Earners | $135,000 | $65 |
| 75th Percentile | $135,000 | $65 |
| Average | $113,406 | $55 |
| 25th Percentile | $134,500 | $65 |
CBP offers competitive salaries and federal benefits, and has a hiring process that typically takes between 3 to 12 months, but can be streamlined for qualifying veterans. Are you ready to start your journey?
Licensed Customs Broker age breakdown
The average age of licensed customs brokers is 40+ years years old, representing 61% of the licensed customs broker population.
Can a company have more than one customs broker?
The Problems with Using Multiple Customs Brokers
Errors in the customs process can lead to delays, fees, or even audits. If an importer gets audited, the customs broker will have to provide backup documents to clear things up with customs officers.
You have four hours to complete the examination. Where and when is the Customs Broker Examination given? This examination is normally given at CBP service ports ( Ports ) the first Monday in April and the first Monday in October.
What is a Customs exam fee? A customs exam fee is the fee incurred by the importer if a shipment is pulled for a customs exam. Depending on the type of inspection performed, the fee can run from $80 to more than $1,000. The importer accepts liability for any customs fees incurred on shipments brought into the U.S.
Approximately 2,600 examinees take the U.S. Customs broker exam every year, and only 15% pass. That's a lower pass rate than the Series 7 exam (65%), the bar exam (59%), and the certified public accountant exam (49%). It's a very difficult exam – even for applicants with importing and exporting experience.
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.
