Customs Broker

A customs broker is a licensed professional who acts as the importer's agent in the customs-clearance process. They prepare and file import declarations, calculate and arrange duty payment, and deal with customs queries on the importer's behalf. Using a broker doesn't transfer legal liability — the importer remains responsible for the accuracy of the declaration — but a good broker catches classification and valuation errors before they become problems.

US licensing. In the United States, customs brokers must hold a CBP-issued license (Form 3124). Individual brokers pass a written exam; brokerage companies hold a permit per district. Brokers are bound by 19 CFR Part 111, which sets standards of conduct, record-keeping, and duty of care to clients.

EU equivalent. The EU does not have a single "broker" licence — any legal entity can act as a "customs representative" under the Union Customs Code. Direct representation means the broker acts in the importer's name; indirect representation means the broker acts in its own name and shares legal liability. Most EU brokers operate as direct representatives.

What a customs broker does. Classifies goods (HS/HTS code), determines duty and any stacking tariffs (Section 301, Section 232, ADD/CVD), prepares the formal entry or customs declaration, posts the customs bond (US) or provides financial guarantee (EU), arranges duty payment, handles CBP/HMRC/customs queries, and files protests or duty-recovery claims where applicable.

When you need one. Any formal entry above the informal-entry threshold ($2,500 in the US), shipments with complex classification, anti-dumping scope, FTA claims requiring proof of origin, or goods subject to import licenses or partner-government agency (PGA) requirements (FDA, USDA, EPA, FCC).