What is a Customs Brokerage?

A customs brokerage is a type of brokerage firm that aids in the process of clearing goods through the customs departments of different countries. A brokerage of this type may represent an importer or an exporter, and aid in the preparation of essential documents and paperwork that help to make the movement of the goods between countries simple and orderly. In some instances, a customs brokerage will also function as an intermediary between a client and a government, especially if some type of issues regarding a shipment develop.

In many instances, customs brokerages are based at major points of entry into the country. Typically, the brokerages will be found operating in seaports as well as airports into which goods are either shipped to international locations, or are received from offshore locations. It is not unusual for brokers on each end of the transaction to remain in contact with one another from the time that a shipment leaves a port of origin and is delivered to a destination. Throughout the process, both parties share data that makes it possible for the shipments to be cleared and ultimately received in a manner that is in accordance with the laws and regulations that apply at the receiving port of entry. This may include preparing documents, arranging for the payment of duties, tariffs, and other relevant taxes, and even arranging for the transport of the cleared goods by road or rail to the recipient’s place of business.

As with any type of brokerage services, professionals who work with customs brokerage houses undergo training and certification before being allowed to work with clients. The scope of customers brokerage training will vary from one country to the next, but will normally involve learning all about governmental regulations that apply to any inbound shipments to ports in the nation where the brokerage is located. At the same time, the training will also include vital information about international trade regulations and general rules that apply to just about any type of import/export situation. In some nations, customs brokers will work as apprentices or otherwise be mentored by established brokers for a period of time before being allowed to take on clients of their own.

Working with a customs brokerage can save businesses a great deal of time and money. Since the brokers are able to collect relevant data, arrange the preparation of necessary paperwork, and in general manage the entire import/export process for their customers, businesses can focus attention on other matters while they await the arrival of the shipment. There are no worries of overlooking something vital that would result in the shipment being held in customs for a period of time, or in accidentally failing to comply with trade regulations. From this perspective, utilizing the services of a customs brokerage is often the most prudent means of conducting any transaction that involves the importing or exporting of goods.