What is a customhouse broker?

What is a customhouse broker: Why do you need a customhouse broker in 2019

A Customhouse broker, also called customs broker, is an entity (a person or a firm) who helps importers and exporters adhere to the rules and regulations of the government, enabling them to trade between countries. Often there is a question attached to this on why would they need a customhouse broker if they can navigate through the rules and regulations themselves. In this article, we will discuss the importance of customhouse brokers and their role in facilitating trade all across the world.

Customhouse brokerage and customs house brokers

Customhouse brokerage is a firm comprising of customs house brokers. They work to help clients in all matters of international and domestic trade.

The US Trade sat at $5.6 trillion in 2018, where $3.1 trillion were it amassed $2.5 trillion in exports and spent the $3.1 trillion in imports.

Often people are unaware of the magnitude at which trade works occurs in the US. For the companies, organizations or individuals who are in export/import, service from a customhouse broker doesn’t just mean being within the lines of law, but it is a matter of convenience.

1.   Trade rules change, and getting acquainted with them is critical

Trade rules of a country are not set in stone. It changes time to time and often, the importers or exporters may not be made aware of such changes, especially if these changes are made an immediate effect. The latest example is the recent methane regulation rollback announced by Trump or the tariff changes that US imposes against China.

A customhouse broker also helps the client with the entry processes and admissibility requirements.

For a person who is managing a business, they can’t be updated on every vertical of trade at all times. However, customhouse brokers task themselves with attaining such change in trade as it is part of their job to do so. As soon as a new rule or refutation is set in place, the customhouse broker informs their clients (importers/exporters) and makes them aware of the situation.

2.   They help you get the papers in order

Getting customs clearance is not at all hard if you have all the papers in order. The hard part is the paper themselves. And customhouse brokers work to get them right from day one!

Customhouse brokers manage all the legal documents pertaining to your goods. This include papers relating to the country of origin and destination, intent of use of goods, permissions, routes, etc. Customhouse brokers also help the client with regulatory paperwork. The goods that you are going to trade must be categorized into duties and have proper declarations. Goods that require formal entry are great examples of how importance of paperwork pans out in trade.

When discrepancies occur in regulatory paperwork, they can lead to adverse outcomes that would cost you dearly in regards to money and time. Choose customhouse brokerage services to avoid such instances.

3.   Customs clearance depends on many factors

A customs broker’s task starts with understanding the nature of goods that the client wants to trade. The customs duties and taxes are not the same for all goods, and an expert customhouse broker would help his client navigate through the different excises and regulations that surround them.

And when the regulations experience a change, they have to quickly make themselves familiar with the new changes and offer their services accordingly.


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4.   Customhouse brokers help manage payments

An importer or exporter should remit timely payments to the CBP or Customs and Border Protection of the US for the movement of the goods. These payments can be in the form of duties, taxes, etc.

Customhouse brokers will ensure that the payments are made on behalf of the client so that there won’t be any run-ins with the law.

They help you against unnecessary costs

Money saved is money earned! Customhouse brokers help you conduct trade in the most efficient manner. This means your money is spent on things that are of absolute necessity. Delays are often a costly affair.

Since customhouse brokers are well versed the government procedures, they can help you avoid fines, penalties or confiscation of goods.

5.   They help with logistics, storage, and distribution

Trade is driven by transport. However, there are more elements at play here. Logistics is a big part of the trade because the movement of goods at the right time impacts the sustainability and profit of many industries, companies, and individuals.

Customs house brokers often work with other trade facilitators like freight forwarders to ensure that your shipments are on track and have proper transportation resources available.

Storage and warehousing is another part of the trade that gives unbelievable headaches. But with a customs broker, you are guarded in that regards too. Customhouse brokers facilitate warehousing options like FTZ or bonded warehouses so that you can store your goods until they are sent out for distribution.

6.   They give you invaluable advice

A good customhouse broker will give you timely advises on trade and how you should structure yours. They speak with years of experience in the field and having a person who has hands-on experience is invaluable in more ways than one.

When it comes to making the right decision, being surrounded by the right people clears the smoke on what to do and what not to do.  Customhouse brokers always suggest what’s best for you and your business.

Customhouse brokers in 2019 and beyond

Due to digitalization, many of the government procedures are now done digitally. Customhouse brokers have to follow this trend and this is why we see them updating themselves with the latest technologies. We can be sure that this trend of melding digital communication customhouse processes is going to expand in the future.

Research is certainly a big part of customhouse brokers. As we discussed before, they need to track the various changes that are impacting trade and see if and how these changes would impact their clients.

With countries being more interconnected and interdependent than ever before, it is a good time for trade and trade facilitators.

Bottom line…

Yes, you can go at it without seeking the aid of a customhouse broker, but is it worth the risk? At Pedraza Customhouse Brokers, we provide comprehensive care to our clients. We ensure that their goods are made ready for transport to or from the country with all the required paperwork. If you need expert customhouse services, get in touch with us today. We make custom clearance easy!

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Pedraza Content Team

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