A broker's work on an ocean import
A broker turns commercial documents into the filings CBP needs and watches for the responses. For an ocean import, that work spans the weeks before arrival and the days after discharge. Because brokers receive CBP's electronic status messages, they are often the first to know about a hold or a release, and many freight forwarders run licensed brokerage operations alongside their freight services.
- Files the ISF for many importers before loading
- Classifies goods and calculates estimated duties and fees
- Files the cargo release and the entry summary
- Coordinates exams and other agency requirements
Licensing, power of attorney and responsibility
U.S. broker licensing rests on 19 U.S.C. 1641 and the regulations in 19 CFR Part 111. CBP issues licenses to individuals, corporations, partnerships and associations to conduct customs business on behalf of others, and individuals must pass the Customs Broker License Exam. A broker acts for an importer under a power of attorney. Hiring a broker does not shift the legal duty, because the importer of record remains responsible for accurate entries and for duties, taxes and fees.
Broker, forwarder and NVOCC: dividing the work
These roles often sit in one company, but they are different jobs. The freight forwarder or NVOCC arranges transport and documents the shipment, while the broker handles the government side of the import. Information has to flow both ways: Bill of Lading numbers reach the broker for the ISF and entry, and the broker's release status helps the forwarder and trucker plan pickup. When either side is missing a reference, filings and pickups slow down.
Example
An importer signs a power of attorney with a licensed broker, who files the ISF and the entry for ONEU9051279 and tells the importer when CBP releases the shipment.
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Official sources
Questions
What does Customs Broker mean?
A customs broker is a person or company licensed to conduct customs business for importers, such as classifying goods, filing entries and paying duties. In the U.S., brokers are licensed by CBP but are not CBP employees.
How can I check that a customs broker is licensed?
Ask the broker for its license and permit details, and check with CBP if in doubt. Many CBP port pages list licensed brokers for that port, though CBP notes those lists may not be complete and do not imply endorsement.
Is a customs broker the same as a freight forwarder?
No. A forwarder arranges the movement of cargo, while a broker is licensed to conduct customs business. Many companies offer both, but each role has its own requirements.