Who is a Customs Broker?

A customs broker is a structure representing an organization or a group of individuals specializing in providing a wide range of services.

What Does a Customs Broker Do? In short, a broker is an intermediary between the client and customs authorities, facilitating foreign economic activity.

Why Do You Need a Customs Broker?

Customs broker services include:

• Preparation of customs documents;
• Resolution of disputes with customs representatives;
• Consultation on important aspects of the customs clearance process;
• Transfer of payments made by the client for these procedures to bank accounts;
• Information support for cargo from dispatch to delivery.

Customs brokers help minimize errors and delays, simplifying the import and export process.

A Guarantee of Business Stability and Profitability

If a trading company manages to hire a qualified and experienced customs broker for its daily operations, business owners can forget about all concerns and uncertainties related to the shipment and receipt of goods of any volume.

A competent customs broker knows exactly how to:

• Ensure a commercial firm a stable long-term profit in cooperation with suppliers from different countries worldwide, including China;
• Prevent any claims related to compliance with established customs clearance procedures;
• Avoid the imposition of various sanctions and fines associated with incorrect or incomplete payment of customs duties, fees, and charges;
• Minimize risks and dangers that often arise during the shipment, transshipment, transportation, and unloading of goods purchased abroad, including consumer goods, vehicles, medical and construction equipment;
• Process cargo crossing one or multiple borders in such a way that the client incurs minimal costs for bureaucratic, logistical, transportation, legal, and other related services.

Duties of a Customs Broker

There are several key tasks that a customs broker performs. The responsibilities include:

• Collecting and processing customs declarations, verifying contracts, invoices, certificates, packing lists, and other accompanying documentation.
• Calculating customs fees (duties, taxes, and charges). The broker can also advise the client on cost optimization.
• Declaring goods. The customs broker assigns the appropriate HS codes to the cargo.
• Ensuring compliance with legislation. It is essential to verify that the cargo meets international and national legal requirements. Brokers check for current import/export restrictions.
• Interacting with customs authorities. The broker represents the client’s interests during inspections and checks, communicating directly with customs officers to resolve delays or issues in clearance.
• Handling additional procedures such as obtaining certificates, licenses, and permits.

Who are customs brokers? They are cargo managers who ensure that shipments clear customs quickly and with all required documentation, reaching their final destination smoothly.

Advantages of a Customs Broker

The main benefits of working with customs brokers are saving time, effort, and finances. With extensive experience in handling international shipments, they know what documents are needed, how to calculate fees and duties, and what typical issues may arise at customs.

By hiring a broker, you eliminate a massive amount of paperwork. Additionally, they help assess risks and opportunities for a specific product category. If you own a medium or large business, consider using this service.

For example, cargo delivery from China to Ukraine passes through three countries: China, Poland, and Ukraine. Brokers ensure that goods leave China with the correct documentation and undergo customs clearance at the Ukrainian border. All you need to do is pay for the broker’s services, delivery costs, and customs fees to receive your fully cleared cargo.

Key Criteria for Choosing a Customs Broker

When selecting a customs broker to handle small, medium, or large-scale procurement operations, you should carefully evaluate their reliability, credibility, integrity, and competence based on the following criteria:

• Possession of official permits to provide customs clearance services for the categories of goods that interest the client company;
• Inclusion in the official list of customs brokers published in the relevant State Register;
• Availability of experienced customs operators, either in-house or as external specialists, capable of handling numerous unforeseen situations quickly and in a legally sound manner;
• Willingness of the intermediary to assume financial responsibility for the transactions and schemes they implement;
• Proximity of the broker’s office to the customs post, ensuring efficiency in document processing and approvals;
• A solid reputation among other agents in international trade;
• Possession of the necessary licenses, certificates, accreditations, and qualifications by the intermediary’s employees;
• Transparency and accessibility of information regarding successfully completed transactions, their volume, any disputes that arose, and how they were resolved;
• A list of customs posts where the broker has previously worked;
• The technical level of the equipment used in daily operations, including computers, multifunctional devices (MFDs), telephone, and telecommunications tools;
• The presence of licensed software on the company’s computers, enabling customs clearance operations;
• Availability of a complete set of company stamps and seals, with clear and legible imprints.

Can You Do Without a Customs Broker?

Yes, it is possible. However, it requires significant effort and an in-depth understanding of import and export regulations. A company would need to independently navigate the complexities of customs legislation, documentation, and calculations. The most challenging aspects include:

• Laws of different countries. You need to be fully aware of the rules and requirements regarding the import/export of goods, including tariffs, duties, certifications, and other restrictions.
• Independent document processing. This includes preparing and submitting customs declarations, invoices, and contracts. Errors in documentation can lead to delays or fines.
• Bureaucracy. You will need to interact directly with customs authorities, which can be a complicated and time-consuming process, especially if you have no prior experience.
• Responsibility for mistakes. Without a broker, all responsibility falls entirely on the company.

Customs brokerage services

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Learning everything that a customs broker knows could take weeks or even months. If your shipments or exports occur frequently and pass through multiple countries, it is best to hire a customs broker. They handle all the paperwork, allowing you to focus on growing your business.

When hiring a broker for foreign economic activities, a trading company expects a 100% guarantee of success in the planned transaction. Accordingly, the company is willing to fully pay for the broker’s services and, in return, requires them to ensure the flawless passage of goods through all customs checkpoints.

Understanding the client’s needs and expectations, a responsible customs broker does everything possible to prevent customs risks and related financial losses, including:

• Delays in goods at temporary storage warehouses in China;
• Incorrect container packing or improper labeling;
• Shipping containers on old, worn-out, or damaged vessels;
• Minor damages or theft of cargo at ports, warehouses, or customs posts.

A conscientious, responsible, and competent customs broker willingly assumes financial responsibility for the integrity and safety of the cargo, the timeliness of its delivery, and the efficiency and completeness of the customs clearance process.

The Customs Broker is Responsible for Everything

When hiring a customs broker for foreign economic activities, a trading and procurement company seeks a 100% guarantee of success for its planned transaction. Accordingly, the company is willing to fully pay for the broker's services and, in return, expects them to ensure the flawless, smooth, and impeccable passage of the shipment through all customs checkpoints.

Fully understanding the client’s needs and expectations, a diligent customs broker does everything possible to prevent any customs risks and the financial losses associated with them, including:

• delays of goods at a temporary storage warehouse in China;
• incorrect container packing or improper labeling;
• shipment of the container on a dilapidated, old, or partially damaged vessel;
• minor damages or theft of cargo in ports, warehouses, or customs checkpoints.

A conscientious, responsible, and competent customs broker willingly assumes financial responsibility for the integrity and safety of the cargo, its timely delivery, as well as the efficiency and completeness of the customs clearance process.

Where to Find a Customs Broker?

The logistics company DiFFreight provides its clients with a full range of services for document processing and customs clearance of goods purchased in China.

DiFFreight’s customs brokers, managers, lawyers, translators, international procurement experts, and economists carefully analyze all possible options for the client’s planned shipment from China. They then offer the best solutions to ensure fast delivery without unnecessary costs.

At every stage of procurement and cargo handling from China, we ensure customs and legal compliance for foreign trade transactions. Our professional expertise, equipment, software, and well-established relationships with all customs authorities allow us to purchase, transport, and properly clear any consumer goods chosen by the client in China.

Do you have any questions? Contact us in any way that is convenient for you.