International Trade and Custom Brokerage

By January 31, 2019
trade

The key to success in the global market is broadening the scope of your business by opting for international trade. This endeavor demands insight into and sheer knowledge of the complexities involved in the custom clearance process. Too busy in important business work to explore this subject? No problem! You can simply use the services of a professional customs broker for outsourcing this stressing task.

Why a company needs a customs broker?

International trade implies enormous endeavors such as collecting e-forms and documents. There are a variety of excise, taxes, and duties to be paid according to the nature of the goods to be imported or exported as international trade is regulated by a multitude of rules and regulations. For the sake of accomplishing higher compliance with these regulations and laws, you need a specialist of the subject known as a customs broker.

Advantages of engaging a customs broker:

  • A customs broker is a qualified and licensed professional who accomplishes the not so simple task of clearance of your shipment by doing the following:
  • Ensure your goods meet the requirements regulating international trade
  • Acts as liaison between the relevant agencies and the company
  • Preparing and submitting the required data and payments to the customs authorities
  • Prior to the submission of the commercial documents ensure its compliance with the regulatory requirements
  • For the sake of determining the taxes and duties ensure the goods have been classified in the right manner
  • Help companies in extending their business cross border by ensuring that the goods reach the customer speedily and safely
  • By giving customized advice custom brokers help all businesses especially small sized in understanding the export and import requirements according to the volumes of goods to be imported.

What does a customs broker do?

Being specialist in the field custom broker assist you in the ever-changing sea of regulations and helps you in comprehending the import essentials associated with specific cargos. They are very well versed in the whole entry process, requirements related to permissibility, valuation, categorization and the taxes and duties imposed on the imported stuff.  Also, he spares you the effort of employing an individual licensed officer and takes care of the responsibilities.

Following are the ways in which engaging a customs broker to facilitate the international trade of a company:

1.    Command on governing requirements:

Custom broker saves companies the efforts levied by the international trade’s regulatory requirements and makes the transportation of goods across border hassle-free.

2. Accelerating the customs clearance procedure:

Customs brokers have skills to ensure that your cargo crosses the border and reach its destination safely and efficiently no matter what the port of entry is.

3. Saving cost:

Being well-versed in the regulation of ever-changing cross-border transactions, efficient and responsive custom brokers can help you avoid fines, delays, impounding of the goods and other drawbacks.

4. Authentication of declarations:

A licensed customs broker prepares and verifies your customs declarations are vigilantly saving you from fines, audits, and sanctions for your business that can result of faulty declarations.

5. Expedient paperwork:

Engaging a customs broker is not compulsion by law, but companies do so for making their communication with relevant agencies and paperwork easy and effective. A single mistake in the customs clearance documentation costs a fortune, so companies prefer leaving the job on the expert.

6. Harmonized Tariff Schedule:

Being knowledgeable about the complex regulation concerning taxes or duties imposed on imported goods custom broker conform to the Harmonized Tariff Schedule. They understand the classification (major groups and sub-groups) criteria and identify goods accordingly for handling customs duty.

7. Hassle-free formal-entry of shipment:

Pharmaceutical products, chemicals, cosmetics, food, dairy products, agriculture and biological materials for medical use and research are the goods that require a formal entry.  For instance, all the above-mentioned cargos, despite its nature, that exceeds $2500 in value and textile that exceeds $250 in value. Engaging a customs broker for compiling the documents, following the protocols and meeting the shipment requirements of all such cargos is a profitable endeavor for companies. This article is a brief account of the importance of customs clearance agent for the success of the business through accomplishing speedy, cost-effective and effective international shipping. Stay tuned for more insights into the subject.

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