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What You Need To Know About Customs Broker?

The majority of people have no idea what a Customs Broker is or does. The reality is that they have earned the highest recognised technical degree in the transportation industry and earn a very decent salary. Customs Brokers have been around since before we became a country in the late 1700s, but few people are aware of their existence. I’ve been asked to provide a brief explanation of what a Customs Broker does in layman’s terms. read more here

An Simple Example
Consider the case of a multinational company importing a large piece of equipment for their factory into the United States. The machinery arrives by ship, and the company dispatches a driver to pick it up and return it to the factory. However, there is a snag: US Customs refuses to release the machinery to the driver. Before being allowed into the United States, merchandise, like travellers, must pass through Customs.
The Customs Broker enters the picture at this stage. The company will be advised by US Customs that they must employ a Customs Broker to “clear” the machinery via Customs, and then the machinery will be released to the factory.
What is the aim of a Customs Broker?
The company (importer) will technically clear the shipment through Customs, but where do you start? There are hundreds of government forms to fill out; why do you fill out, how do you fill them out, do you pay tax, and so on.
Actually, it’s more than just forms. The Customs Broker will decide whether this item is qualified for entry into the United States, the Country of Origin will determine a Duty Rate, and the merchandise will qualify for any of the Duty Free programmes available for such items. On behalf of the importer, the Customs Broker may also issue a surety (Bond) to the government that the importer will comply with all Customs demands, including those that may arise after import.
A knowledgeable Customs Broker may also advise the importer about how to legally stop paying duty on potential imports. Certain imports that are usually subject to duty can be imported duty-free into the United States by taking advantage of one of the many services available to importers.