How do customs brokers handle import documents?

Alfonso Llanes, Master Degree in International Development

A Customs Broker is a multi-function operation licensed by the Federal Maritime Commission to conduct third party representation and logistics on behalf of shippers. Their main activity is to insure that shippers comply with laws and regulations at the ports of entry, clear merchandise through Customs and pay duties and taxes on behalf of owner of the shipment as stated on the Bill of Laden by the carrier.

Here is a reference list of duties normally assigned to a Customs Broker:

· Classify goods according to the harmonized tariff coding system.

· Examine product information to ensure compliance with regulations.

· Arrange for payment of, taxes and duties on shipments.

· Prepare import and export documentation according to customs regulations.

· Sign documents on behalf of clients, using power of attorney.

· Clear Merchandise through customs and to their destinations.

· Coordinate logistics or other business operations.

· Update knowledge of changes in import or export laws or regulations.

· Compile necessary import documentation, such as customs invoices, certificates of origin, and cargo-control documents.

· Advise customers on import and export restrictions, tariff systems, insurance requirements, quotas, or other customs-related matters.

· Monitor or track the location of merchandise in transit.

· Post bonds for the products being imported or assist clients in obtaining bonds.

· Quote duty and tax rates on goods to be imported.

· Obtain line releases from Customs for frequent shippers of low-risk commodities, high-volume entries, or multiple-container loads.

· Arrange for transportation, warehousing and distribution of imported or exported products.

· Coordinate logistics or other business operations.

· Inform importers and exporters of steps to reduce duties and taxes.

· Apply for tariff concessions or for duty drawbacks and other refunds.

· Provide advice on transportation options, types of carriers, or shipping routes.

· Prepare papers for appeal duty charges.

· Prepare regulatory or compliance documentation.

· Suggest best methods of packaging or labeling products.

· Insure cargo against loss, damage, or pilferage.