Shipping your products internationally can help your business thrive. But strict custom regulations often make this easier said than done. That’s why many companies choose to work with customs brokers.
Customs brokers play an important role in international trade. But not all brokers are created equal, so you'll need to know how to find the best one for your company’s unique needs.
What Does a Customs Broker Do?
Customs brokers help businesses get products across borders. They prepare documentation, follow compliance mandates, and liaise with government agencies. Brokers also help track international shipments, pay duties or fees, and advise businesses on optimal strategies for importing and exporting.
A customs broker can help your business navigate any challenges that may arise when shipping products internationally. This can get your goods where they need to go faster and save money for your organization.
How Do Customs Brokers Benefit Importers?
A broker can also help you import goods into your company’s home country. They can guide you through complex customs processes and help you:
- Properly classify the goods you’re importing
- Problem-solve in real-time to avoid delays at borders
- Avoid costly fines and penalties associated with non-compliance
This can all save you a lot of time. You won’t need to research and try to comply with all relevant legal requirements on your own. Your broker will handle the details on your behalf so you can remain focused on the big picture.
The Main Role of Customs Brokers in Easing Import Challenges
Let’s look at a few examples to get a better sense of how customs brokers may be able to help your company overcome its import challenges.
Imagine a large retail company based out of the U.S. that’s looking to reduce its costs for international shipping. A customs broker could step in to help that business find and remove inefficient processes and redundancies. They could also offer consulting advice to help the retailer optimize import flows and reduce costs.
Or consider a manufacturing company that wants to start importing raw materials from China to save on production costs. This can be tricky, as importing goods made in China can have a tariff rate as high as 25%.
A customs broker could help the company understand the tariffs associated with the materials it wants to import. They could help minimize those costs as much as possible and propose alternative import solutions that may be a better option for the manufacturing company’s goals.
Customs brokers do more than simply guide you through the importing or exporting process. They leverage their international shipping expertise to help companies problem-solve. That’s why they can save your organization more money and time than you might expect.
How to Find the Right Customs Broker for Your Organization
If you think a customs broker is right for your organization, the next step is finding a good fit. Here’s a three-step process you can follow.
1. What to Look For in a Customs Broker
First, establish what you’re looking for in a reliable broker. This can vary based on your company’s import and export goals.
For example, you may want a broker with experience handling international shipments in your industry. That way you know they’ll understand the intricacies of shipping those kinds of products across borders.
You should also consider shipment size. Some teams have experience with very large deliveries while others focus more on smaller shipments. They may have different sets of skills.
Finally, decide whether you need any additional services. Some companies offer bundled services on brokers and other kinds of shipping support. You may be able to save some money by hiring the same business for both.
2. Searching for Candidates
Once you know what you want in a broker, you can begin looking for candidates that fit the profile. There are a few ways you can approach this.
One option is asking for referrals. A partner, supplier, or customer may already know a broker in your industry that’s great to work with. Following their recommendation could help you make a strong choice faster than screening candidates on your own.
There are also various online platforms you can use to research customs brokers. For example, the U.S. Customs and Border Protection website has a list of permitted customs brokers you can browse. This can be a good starting place to get a sense of broker options in your area.
If those options fail, look into industry trade shows and conferences. Customs brokers usually have a presence at these, and you’ll get the chance to screen candidates face-to-face before making your decision.
3. Verifying Credentials
Once you find a broker you like, you’ll want to verify their credentials before signing any contracts. This means making sure they have the national CBP permit they need to operate legally.
If you see their name listed on the CBP website, then they have a permit to operate in any U.S. port. You may need to review other countries’ permitting processes if you’re looking for international support.
It’s also smart to read reviews from previous clients to assess how they feel about the broker. If you can’t find that information online, feel free to ask the customs broker you’re considering for references.
Related Content: How to Evaluate a Customs Broker
The Importance of Choosing the Right Customs Broker
Finding the right customs broker can help your organization save time and money in international shipping. As the largest privately-held U.S. customs broker, A.N. Deringer is here to help. You can request a quote online to learn more about what we can do for your business.
