Customs broking - AbsoluteAstronomy.com

Customs brokerage is a profession that involves the 'clearing' of goods through customs barriers for import

Import

The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...

ers and export

Export

The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...

ers (usually businesses). This involves the preparation of documents and/or electronic submissions, the calculation (and usually the payment) on behalf of the client of taxes, duties

Duty (economics)

In economics, a duty is a kind of tax, often associated with customs, a payment due to the revenue of a state, levied by force of law. It is a tax on certain items purchased abroad...

and excises, and facilitating communication between the importer/exporter and governmental authorities.

Custom brokers may be employed by or affiliated with freight forwarder

Freight forwarder

A freight forwarder, forwarder, or forwarding agent is a person or company that organizes shipments for individuals or other companies and may also act as a carrier...

s, but may be independent businesses or may be employed by shipping lines

Shipping

Shipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck...

, importers, exporters, trade authorities and customs brokerage firms.

United States

Customs brokers in the USA will often prepare and submit documentation to notify or obtain the clearance from other government agencies such as the Food and Drug Administration

Food and Drug Administration

The Food and Drug Administration is an agency of the United States Department of Health and Human Services, one of the United States federal executive departments...

(FDA), the United States Department of Agriculture

United States Department of Agriculture

The United States Department of Agriculture is the United States federal executive department responsible for developing and executing U.S. federal government policy on farming, agriculture, and food...

(USDA), the Fish and Wildlife Service, and many others. Customs brokers need to be familiar with the Tariff Schedule

Harmonized Tariff Schedule for the United States

The Harmonized Tariff Schedule of the United States is the primary resource for determining tariff classifications for goods imported into the United States . This two volume U.S...

, a listing of duty rates for imported items, and the regulations governing importations found in the Code of Federal Regulations

Code of Federal Regulations

The Code of Federal Regulations is the codification of the general and permanent rules and regulations published in the Federal Register by the executive departments and agencies of the Federal Government of the United States.The CFR is published by the Office of the Federal Register, an agency...

Title 19, known as 19 CFR. For example, a customs broker may need to advise an importer regarding country of origin

Country of origin

Country of origin , is the country of manufacture, production, or growth where an article or product comes from...

marking requirements or the precise paperwork requirements for a clothing shipment subject to quota

Import quota

An import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time....

/visa requirements. Knowing the requirements of each type of import can avoid costly delays or seizure of the merchandise. Many customs brokers specialize in certain types of transactions, such as wearing apparel, perishables, or clearing the crew and manifest of large cargo vessels. Customs brokers can be located at inland "ports" to clear merchandise sent "in bond" but most are located at major airport

Airport

An airport is a location where aircraft such as fixed-wing aircraft, helicopters, and blimps take off and land. Aircraft may be stored or maintained at an airport...

s and harbor

Harbor

A harbor or harbour , or haven, is a place where ships, boats, and barges can seek shelter from stormy weather, or else are stored for future use. Harbors can be natural or artificial...

s with international traffic. Customs brokers normally arrange the transhipment, or local delivery, of cleared merchandise through relationships with trucking companies and others. Customs brokers must pass an examination and background check to become licensed. Customs brokers are not government employees and should not be confused with Customs agents, although in some countries the term customs agent may mean customs broker.

In the United States

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, customs brokers are licensed by the U.S. Customs and Border Protection

U.S. Customs and Border Protection

U.S. Customs and Border Protection is a federal law enforcement agency of the United States Department of Homeland Security charged with regulating and facilitating international trade, collecting import duties, and enforcing U.S. regulations, including trade, customs and immigration. CBP is the...

European Union

For customs brokers and clearing agents operating within the European Union, there is no licensing system. The onus is firmly on the importer or exporter to ensure that any party acting on their behalf is in possession of the facts to do so. Article 5 of the current customs code (Council Regulation 2913/1992) deals with the very important area of representation. This provision allows an importer or exporter to appoint a third party to act on their behalf. The importer or exporter can appoint the third party to act in two capacities, i.e. as a direct representative or as an indirect representative. A direct representative will act on behalf of the importer/exporter but will have no responsibility for the customs debt arising from their actions, whereas an indirect representative will have a joint and several liability for the customs debt. In almost all cases, the third party will elect to provide brokerage services on a direct representation basis. As a result the importer or exporter is fully exposed to the risk or error and omission by the customs broker.

Canada

In Canada

Canada

Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

customs brokers are licensed by the Canada Border Service Agency (Canada Customs). The majority of licensed Customs Brokers are members of the Canadian Society of Customs Brokers.

Australia

In Australia Customs Brokers are licensed by the Australian Customs Service http://www.customs.gov.au and the majority are members of the Customs Brokers and Forwarders Council of Australia, the peak industry body representing these service providers.

External links

The source of this article is wikipedia, the free encyclopedia. The text of this article is licensed under the GFDL.