Customs broker

The broker classifies the goods under the HS code, determines their customs value and origin, calculates duties and import taxes, and files the declaration in the customs authority's electronic system. It answers queries, coordinates inspections, obtains release and passes it on to the carrier or forwarder so the cargo can be collected. Brokers also advise on permits, licenses and trade agreements that change the duty payable.

A customs broker and a freight forwarder are different roles, although many companies hold both. The forwarder arranges the physical movement of goods; the broker handles their legal entry into a country. Licensing differs by country: in the United States, customs brokers are licensed by U.S. Customs and Border Protection, while European Union law speaks of customs representatives acting for the importer through direct or indirect representation.

Even when a broker files the declaration, the importer of record usually remains legally responsible for its accuracy and for any duty later found to be owed. Brokers typically need a power of attorney, the commercial invoice, the packing list, the transport document and any certificate of origin. Missing or inconsistent documents are a frequent cause of clearance delays, which then turn into storage and demurrage at the port.