What does a customhouse broker do? Does your business need one?

Each country has its own specific rules and regulations when it comes to trade. These need to be complied with, and even a minor confusion between these rules and regulations can result in the delay of the shipment or in the worst case, barring of the shipment itself.

But how can new businesses navigate through these tricky waters? In most cases, you cannot expect the business owner to be versed in domestic and international trade laws. This where the customs house broker comes in.

What is a customhouse broker?

A customhouse broker can be a firm or a person that helps the business to comply with the rules and regulations the government has put forward while exporting and importing, to ensure smooth trade between different countries.

These are complicated times and trade across countries is done with the help different of air, water, and land transports. There are a variety of things like permissions, fees, deadlines, documents, etc. that needs to be correct so that a cargo leaves from location to location. And if any of these are not it might lead to imposing huge fines by authorities, delays in shipment, or even seizing of the shipment.

This is why every business prefers to hire a customhouse broker for international trade. Customhouse brokers clear the shipments, prepare documents for exporting and collect the taxes. They are an intermediary between the business organizations and the government, taking care of the dealings with the legislation.

Customhouse brokers are hired by different business organizations depending on their credibility and the services they provide. Some of the services they look for are:

  • Customs valuation
  • Customs clearance
  • Tariff classification
  • Customs clearance that’s automated through various government programs
  • Consultation and facilitation services they offer for international trade
  • Consolidation services and freight services
  • Purchase order management of import and export
  • National and regional warehousing
  • Import services for non-residents
  • HS code ruling, the origin of goods or valuation requests with the importing country’s government.
  • Use their experience and expertise for spreading your business to different regions
  • Understand your work and provide personalized advice for improvement
  • helps to avoid unnecessary costs like fines that may otherwise be a huge amount without proper

As long as business goes well, there will be more import and export of various goods, which means more work for the customhouse brokers. So they will ensure that your business runs smoothly and even help you to improve it in certain ways.

The preparation of different documents for export and import requires vast knowledge in fields like rates of duties, the origin of goods, and tariff classifications.

The knowledge and skills of the customhouse brokers are the main factors that help people, international businessmen, to develop the right procedures and systems in trade data reporting. The advancement of technology has enabled customhouse brokers in many countries to be electronically linked with customs via automated systems. This helps to transfer payment and documents at a much faster rate and hence results in fast clearance of the shipments.

The correct classification of goods using an appropriate harmonized code is ensured by the customhouse brokers so that the importers pay very less amount as taxes and duties. Since the customhouse brokers represent the importer, a customs power of attorney is mandatory from the importer of record. This ensures that any issues caused by negligence or fraud will be shared both by the importer as well as the customhouse broker.

The different ways a customhouse broker can help

Apart from helping a company in different areas like tariff collection, refunds, drawbacks, tax implications, etc. a customhouse broker can be asked to review the operations of the company for making changes or improvements.

They also purchase insurance packages for cargos for interested brokerage clients. Warehousing and distribution are some services offered by customhouse brokers. These brokers act as an extended part of the foreign companies, help them become a non-resident importer and clear their goods through customs. Most importing countries require records to be maintained for a specific period of time (for example, in Canada is 6 years) which can be done without any flows by these customhouse brokers.

Is the job of a customhouse broker an easy one?

Customhouse broker is a type of job people who love moving from place to place will like. It is a job that requires great responsibility, knowledge, and skills in different areas. The job requires the brokers to move from place to place or even country to country depending on their clients.

This job is never limited to office work and the brokers have to spend a lot of time moving between their offices and customs houses, airports, warehouses, shipyards, etc. depending on the movement of cargo from and to a country. They need to have extensive knowledge about rules and regulations, using a variety of electronic equipment, and good communication skills.

Hiring a customhouse broker allows a company to go through a straight path of import and export between different countries, avoid extra expenses and comply with all the rules and regulations. A good customhouse broker ensures lower tension and smooth business.

Choose the right customhouse broker for your business!

Pedraza customhouse brokers have over 15 years of experience in international and domestic trade facilitation. We strive to help businesses in their trade requirements and provide end-to-end solutions. Contact Pedraza Customhouse Brokers Inc in El Paso or Laredo for accurate, reliable, and cost-effective ways to manage your company’s international import and export logistics.

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Pedraza Content Team

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