How Customs Brokerage Makes Importing Easier

In today's global economy, importing is a necessary function. Customs brokers play a vital role in the import process by handling customs transactions for importers.

Importing material into the United States can be a very complicated process. Before foreign goods can come into the U.S., they must be “entered” with a customs entry. An importer has the right to make entry on his own behalf, but mistakes due to inexperience can be costly and time consuming. Many importers opt to utilize the services of a licensed customs broker to handle import transactions. Even when a broker's services are used, the importer is ultimately responsible for the accurate filing of the customs entry.

Role of a Customs Broker

Customs brokers are licensed by U.S. Customs and Border Protection and act as an agent to handle customs business on behalf of their client. They are authorized to represent the importer in customs transactions when the importer issues a valid power of attorney to the broker. The broker may be either an individual or a company.

The customs broker assists with imports by preparing and filing the required customs documentation, arranging for the payment of duties and responding to inquiries from customs for additional documentation or information. They may also make transportation arrangements for the goods once they are released.

Customs brokers have a variety of responsibilities they must uphold to maintain their license. They are required to retain in an organized and orderly fashion all records associated with customs transactions for five years. Power of attorney forms must be kept until they are revoked. Records are to be kept confidential, and they must be made available should Customs and Border Protection request them.

Brokers that operate as individuals or as a licensed officer of a brokerage company must exercise responsible supervision and control over all business transactions. Names and personal information of all employees that handle customs transactions must be reported to customs. The customs broker must pay all required license and permit fees, report any changes in the structure of the business and submit an individual status report to customs every three years. They are also required to submit timely payments and responses to requests from customs.

Benefits of Using a Customs Broker

Using the services of a licensed customs broker has many benefits to an importer. As an experienced import professional, the broker understands the complexities of customs laws and regulations and knows how to navigate them. They can advise the importer on proper documentation, reporting requirements to other government agencies and special trade programs that may be advantageous to the importer.

Using a broker can also help the customs entry process go faster and more smoothly. Most brokers utilize the Automated Broker Interface (ABI) system to electronically submit entries and duty payments to customs. Electronic transactions are much faster than the traditional method of physically tendering documents and monies to the customs office. Because they interact with customs officials on a regular basis, a broker can usually resolve an issue quickly and effectively.

Considerations When Using a Customs Broker

Even when an importer decides to use the services of a customs broker, the importer is still responsible for meeting all the legal requirements. The Customs Modernization Act made it the responsibility of the importer to use reasonable care in the entry of goods, reporting the proper classification and determining the correct value. Importers should not rely solely on their broker for compliance. The importer should take an active role by auditing customs entries and verifying duties are paid on time.

Selecting the right customs broker is an important decision. When brokers and importers work together, they can achieve a smooth entry process and compliance with U.S. customs regulations.

Date: 2016-01-14; view: 697