Customs Broker
A customs broker is a licensed professional or company that helps importers and exporters clear goods through customs authorities.
Examples: A customs broker files the necessary paperwork and pays duties for a U.S. importer receiving auto parts from Germany.
Advantages: Expertise in customs regulations, ensures compliance, prevents costly delays at borders, and manages duties and tariffs.
Challenges: Adds service fees, requires accurate information from shippers, and mistakes in documentation can still cause delays.
Real-world example: Many global shippers use brokers like DHL Global Forwarding or Expeditors to handle customs clearance for high-volume imports.
Explain like Iām five: A customs broker is like a helper who makes sure your package from another country gets through security at the airport.
FAQ: Is a customs broker required for every shipment? In the U.S., licensed brokers are required for most commercial imports valued over $2,500.
Bottom line: Customs brokers are critical for smooth international trade, but shippers must provide accurate, timely information to avoid problems.