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, ADD, IEEPA), 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).