Parties

Customs Broker

Definition

A customs broker is a private individual, partnership, association, or corporation licensed, regulated, and empowered by U.S. Customs and Border Protection (CBP) to assist importers and exporters in meeting Federal requirements governing imports and exports. Brokers submit necessary information and appropriate payments to CBP on behalf of their clients and charge them a fee for this service, handling activities involving transactions with Customs concerning the entry and admissibility of merchandise, its classification and valuation, and the payment of duties, taxes, or other charges. Brokers must have expertise in the entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise. There are approximately 14,454 active licensed customs brokers in the United States.

Examples

A FedEx Express shipment with AWB 023-12345678 requires HTS classification for imported electronics components. The customs broker files CBP Form 3461 with the proper 10-digit HTS code, calculates applicable duties based on country of origin, and submits the entry summary within 10 working days of cargo release. An American Airlines Cargo shipment (AWB 001-87654321) containing pharmaceutical products arrives at Miami International Airport, where the licensed customs broker coordinates with CBP for inspection clearance and ensures compliance with FDA import requirements before cargo release.

Also known as

  • customs agent
  • clearance agent
  • import broker

Frequently asked questions

What license examination must I pass to become a customs broker?
The Customs Broker License Examination is an open book test with 80 multiple-choice questions based on the Harmonized Tariff Schedule of the United States (HTSUS), with four hours to complete the examination. This examination is normally given at CBP service locations the first Monday in April and the first Monday in October, with applications and $200 fee due at least 30 days in advance.
How much do customs broker services cost for air cargo shipments?
Customs broker fees for a standard single entry typically run $100 to $250. Additional costs include the Merchandise Processing Fee at 0.3464% of declared value with minimum and maximum caps, plus duties based on HTS classification ranging from 0% to 30%+ of cargo value. A single-entry bond costs around $50 to $100 per shipment, while a continuous bond runs $400 to $600 per year.