Freight forwarders are in charge of assembling and completing a variety of documentation and compliance filings. According to the Department of Homeland Security , a customs broker is defined as a private individual, partnership, association or corporation licensed, regulated and empowered by U.
Brokers submit necessary information and appropriate payments to CBP on behalf of their clients and charge them a fee for this service. They must have expertise in the entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise. Consider the following real-life examples of the difference between a freight forwarder and a customs broker.
Example 1: An exporter in Minnesota wants to send a pallet of equipment to Toronto. His freight forwarder gives him a quote for the shipment and asks if the customer in Canada has a customs broker.
He replies yes, so the freight forwarder handles only the shipping. The exporter, working with the importer, will need to contractually agree on terms of sale the Incoterms and the transaction details, including the hiring of a customs broker, among other things. In this example, the freight forwarder and customs broker are two, separate entities; the exporter must manage both his partnership with the forwarder as well as the transaction with the importer. The exporter says yes, which changes the transaction for the forwarder; now, instead of just handling the shipping to Canada, the forwarder is managing the shipping plus arranging for customs clearance.
This includes the payment of duties, taxes and anything else associated with bringing goods into Canada from the U. In this example, the equipment will be delivered without the exporter having to do any extra additional work on the import side. No matter which route you choose in your export transaction, a good freight forwarding partner is invaluable. However, regulations for transporting goods from and to the European Union are complex, which means that you need the right knowledge.
Apart from the required licences and knowledge, you also need software to handle the customs formalities. It is therefore a very logical decision to contract out your customs affairs. Firstly, there are customs brokers who focus exclusively on customs matters and therefore do not offer any logistics services.
There are also logistics service providers who have their own customs brokerage department, which is run by customs experts. Finally, there are logistics service providers who are not authorised to handle customs formalities and therefore contract out this work, but still offer it under their own name. Apart from an ocean and air freight forwarder, Intervracht is also a customs broker. So, if you would like to be relieved of all your worries about shipments, including the organisation of customs formalities, then Intervracht is the partner who can assist you.
This website uses cookies in order to offer you an optimal functioning website. Read here which cookies we use and our privacy declaration. You do not want this? Then adjust the cookie settings. Alliance experts is active in over 30 countries with local export brokers, who know the market, know the culture and speak the language. They support you and your export team in entering a new market with strategic insights, the right contacts and hands-on support. We have helped hundreds of companies in their international expansion.
For examples, see here. Agents, distributors, dealers or franchisees are essential to get exposure in the market. We will not only find them, but also make sure they will sell for you. After we know your company better and have identified potential partners, we can also act as your agent or representative in the market. For example if you have a product that you want to sell through multiple distributors or in case there is a language barrier. We can take care of various activities:.
You can see us as the temporary and part-time extension of your team. Hiring us gives the following benefits:. Also see our article: what are the real costs of an export manager? In the first months we always work on a fixed price basis, with clear deliverables. There is always a payment term at the project start, to ensure your commitment and ours.
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