Let’s simplify this term by, first of all, trying to know who is a customs broker. A customs broker can be described as an expert who renders professional services in making arrangements for customs clearance during a shipment. Having said that, we can go ahead and simply describe customs brokerage as the professional services rendered by a customs broker. 

Meaning Of Brokerage In Shipment  

In shipping, the term brokerage is the commission that the carrier pays to a freight forwarder for placing cargo. You can still describe brokerage as a fee paid by a vessel owner to a shipbroker for making arrangements for a vessel charter. 

Process Of Brokerage 

A customs broker acts as a middleman between the cargo owner and the carrier. Two options can be followed in paying commission to a customs broker. The first option is to base payment on the percentage of transactions. The second option is to base such payment on a flat rate. Such a flat rate may be paid annually or quarterly, depending on the agreement reached by the carrier and the customs broker. 

Functions of a Custom Broker 

Some of the functions rendered by a customs broker are discussed as follows:

• Preparation and processing of documentation pertaining to import and export. This they do in accordance with customs regulations and laws. They also follow proper procedures while carrying out this assignment.  
• Goods clearance through customs to their destinations. They do this on behalf of the cargo owner. 
• They assist clients in obtaining actual calculations of payment like tariff and duty. 
• They ensure that such goods meant for import or export meet the required standards. 
• With the aid of power of attorney, they sign documents on behalf of clients. 
• They represent clients at meetings held with customs officials. 
• They help clients in applying for refunds of duty payments. 
• Help to liaise between his clients and the agencies of government.

Benefits of Using a Customs Broker 

There are many benefits you will enjoy by hiring the services of an expert customs broker; such benefits are discussed beneath: 

• The licensed custom broker gives clients expert help and advice. 
• They help to organise data, invoices, and records.
• He represents his clients in meetings with government agencies. 
• Helps to clear issues pertaining to fees and duties. 
• Serve as a guide to clients on issues relating to regulations plus other requirements. 

Qualification of a Custom Broker 

Do you wish to make a career in customs brokerage? To do this, you require to obtain a bachelor’s degree, and such a degree has to be in specialised areas of the organisation. Alternatively, you can go for a customs broker license exam. If you emerge successful in such an exam, you will become a qualified licensed custom broker. 

The CBLE usually consists of multiple-choice questions, and the questions are typically 80 in number. The examination lasts for a period of 4.5 hours. You require to score 75% to pass. 

The Key Takeaway 

A customs broker can be described as an expert who renders professional services in making arrangements for customs clearance during a shipment. Hence, we can go ahead and simply describe customs brokerage as the professional services rendered by a customs broker. 

When it comes to the import and export of goods, a good customs broker renders many useful functions. Hence a customs broker is highly beneficial to the cargo owner and the carrier. 

Before you can practice as a customs broker, you must qualify as a licensed customs broker or possess a bachelor’s degree in related areas.