In international shipping, not using a licensed CHB can adversely impact the shipper and customs brokerage. A licensed Customs Broker (CHB) is an individual or company that has acquired licensing from the U.S. Customs and Borders Protection (CBP). The licensing allows the individual or company to act as an intermediary between the importer and customs authorities. CHBs coordinate with customs to release the goods that a shipper imports into the U.S. Some of the tasks of a licensed CHB can include:
- Ensuring the clearing of goods from customs by ensuring that the imports comply with the laws and regulations of customs
- Preparing and Submitting the required paperwork for customs clearance to customs on behalf of the importer
- Acting as the middleman between the importer and customs authorities and assisting with any issues arising during the clearance process
- Determining the proper classification and valuation of the cargo for tax and customs purposes.
When importers decide to use a Customs Broker, the CHB they choose must run operations legally. For example, all customs businesses that a brokerage does must have the supervision of a licensed CHB. Customs business is any transaction with customs authorities regarding the entry of a shipment into a country. An example is data entry filings, in which the CBP prohibits filing from foreign service centers.
The Ramifications of Not Using a Licensed CHB
Customs Brokers who do not do all customs business under the supervision of a licensed CHB can risk potential repercussions. The consequences can range from monetary fines to termination of the brokerage. It can be helpful for the shipper to ask the broker where they do their work and entry filings. Along with the legal consequences of not doing customs business in the U.S., this can also impact the importer. If the CHB gets in trouble for using an outside source, customs can hold and seize the shipment. This can lead to monetary loss for the shipper and look unfavorable if the importer is a business with customers.
Looking For A Licensed Broker?
Due to the extensive regulations that the importers must follow, customs clearance can be a complex process for shippers. Not only must the documentation be correct, but shippers must also follow the laws and regulations for importation. It is essential to note that each country can have its individual regulations for customs. Failure to adhere to the guidelines can result in delays and extra charges. An ideal way to begin importing into the U.S. is by using a customs broker to coordinate the clearance process.
Although importing into the U.S. without a customs broker is possible, most successful importers utilize their assistance. Both new and experienced shippers use brokers due to the value that they offer. They ensure the successful clearing of cargo from customs and guide and educate you through the process. They also allow the company to focus on other aspects of their business while the broker handles the shipping. Contact A1 Worldwide Logistics at 305-821-8995 to speak to a licensed customs broker regarding bringing your shipment into the U.S. We also provide freight forwarding and trucking services for exporting your goods anywhere internationally.
