How to Be Customs Broker - Job Description, Skills, and Interview Questions

Aug 24, 2021 / 6 Minutes Read / By Albert

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Customs brokers are critical intermediaries in the international trade process, as they help facilitate the efficient flow of goods across national borders. Without customs brokers, businesses and consumers would find it difficult to comply with customs regulations, leading to delays in importing and exporting goods. Furthermore, customs brokers can provide valuable guidance in navigating complex regulations, and can advise on the best practices to minimize duties and taxes. Ultimately, by engaging a customs broker, companies can decrease the time and cost spent on importing and exporting goods, improving their bottom line.

Steps How to Become

Research the Requirements. Before you pursue a career as a customs broker, do your research and make sure you understand the requirements. Customs brokers must be at least 18 years old and have a valid government-issued photo identification. You must also have a high school diploma or equivalent and be a U. S. citizen or permanent resident.
Obtain a License. All customs brokers must obtain a license from the U. S. Customs and Border Protection (CBP). To apply for a license, you must complete an application, submit a non-refundable fee, and provide supporting documentation.
Take the Exam. To qualify for a license, customs brokers must pass a written examination. The exam covers topics such as the Harmonized Tariff Schedule, import regulations, and customs laws and regulations. The exam is administered by the CBP several times a year in major cities across the country.
Gain Experience. You can apply for a trainee license before taking the exam. With a trainee license, you can work under a licensed broker to gain experience in the field. This is not required but can help you better prepare for the exam.
Apply for Your License. Once you have passed the exam and gained experience, you can apply for your customs broker license. You must submit an application to the CBP, along with the required fee and supporting documents. Once your application has been approved, you will receive your license in the mail.

In order to remain qualified and up to date as a Customs Broker, it is essential to stay informed on the latest government regulations, policies, and procedures. Keeping up with frequent changes in legislation, understanding new trade agreements, and staying on top of technological advances are all important aspects that must be monitored in order to stay current in the field. In addition, Customs Brokers must regularly attend professional development conferences and seminars to maintain their knowledge of the industry and to build networking connections.

in order to maintain a valid license, Customs Brokers must pass an examination every five years as mandated by the U.S. Customs and Border Protection. By consistently taking these measures to stay informed and qualified, Customs Brokers can ensure that they remain current in an ever-changing field.

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Job Description

Obtain customs clearance and prepare documents for import/export shipments
Prepare and submit customs declarations in accordance with the applicable laws and regulations
Negotiate with customs authorities to obtain the best possible outcome for clients
Advise clients on the most suitable shipping methods, tariffs and restrictions
Assist clients with the completion of customs declaration forms and other documentation
Monitor changes in customs regulations and advise clients accordingly
Ensure compliance with all trade regulations, including those of the World Trade Organization (WTO)
Keep records of all transactions and maintain updated knowledge on rules, regulations and tariff systems
Liaise with clients, freight forwarders and other agents to ensure smooth customs clearance
Research and analyze information related to customs regulations, duties and taxes
Provide training and guidance to clients on import/export requirements and procedures

Skills and Competencies to Have

Knowledge of customs regulations, laws and procedures.
Ability to read and interpret customs documents.
Excellent communication and customer service skills.
Attention to detail.
Excellent organizational and problem-solving skills.
Proficiency in computer software such as MS Office and customs-specific systems.
Ability to work well under pressure in a fast-paced environment.
Ability to work in a team and independently.
Knowledge of inventory control principles, methods and techniques.
Knowledge of supply chain management principles and methods.
Knowledge of international trade regulations and policies.

Customs Brokers play an important role in the movement of goods internationally and must possess a number of skills to be successful. One of the most important skills for a Customs Broker is the ability to understand and interpret complex regulations, laws and policies related to international trade. Understanding the various regulations, laws and policies is essential in order to ensure that all shipments are properly documented and cleared through customs.

Furthermore, Customs Brokers must also be proficient in communication, negotiation and problem solving, as they often need to interact with clients, government officials and other stakeholders. the broker must have considerable knowledge of the logistics of international trade, including warehousing, transportation, insurance, freight forwarding and customs clearance procedures. Finally, a Customs Broker must have strong organizational skills in order to keep track of paperwork and ensure that shipments are delivered on time.

These skills are essential for successful operations in the international trade sector.

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Frequent Interview Questions

What experience do you have working in the customs brokerage industry?
How do you stay up-to-date on customs regulations and policies?
What strategies do you use to ensure that all shipments comply with customs regulations?
How do you manage complex paperwork for international shipments?
How do you handle customer inquiries or complaints regarding customs processes?
Describe how you would handle a difficult problem related to customs regulations or clearance.
What strategies do you use to minimize customs-related delays?
How do you ensure that all required documentation is filed correctly and on time?
What techniques do you use to ensure accuracy when preparing and filing customs forms?
Describe a successful project that you have managed related to customs clearance and/or international shipping.

Common Tools in Industry

Automated Broker Interface (ABI). A software platform from the US Customs and Border Protection (CBP) which enables the electronic filing of customs entry and other related documents. (eg: ABI software is used to electronically file entry documents with CBP. )
Customs Modernization Act (CMA). A US federal law enacted in 1993 that modernized the customs process and enabled the automation of customs entry documents. (eg: The CMA facilitated the electronic filing of customs entry documents with CBP. )
Customs Trade Partnership Against Terrorism (C-TPAT). A voluntary supply chain security program developed by the US Customs and Border Protection (CBP) to improve the security of the global trade system. (eg: C-TPAT works to ensure that US customs brokers are compliant with US customs regulations. )
Automated Commercial Environment (ACE). A software platform from the US Customs and Border Protection (CBP) which enables the electronic filing of customs entry and other related documents. (eg: ACE is used to electronically file entry documents with CBP. )
Harmonized Tariff System (HTS). A system of classifying goods to determine the duties and taxes applicable to imported merchandise. (eg: The HTS helps customs brokers determine the applicable duties and taxes for imported goods. )

Professional Organizations to Know

National Customs Brokers & Forwarders Association of America (NCBFAA)
Airforwarders Association (AfA)
The International Federation of Customs Brokers Associations (IFCBA)
National Associations of Freight and Logistics (NAFL)
Global Business Alliance of Customs Brokers (GBACB)
Customs Brokers and Freight Forwarders Association of Canada (CBFFAC)
International Association of Freight Forwarders (IAFF)
Institute of Export and International Trade (IOEIT)
Chartered Institute of Logistics and Transport (CILT)
World Customs Organization (WCO)

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Common Important Terms

Tariff. A tariff is a tax imposed by a government on imported or exported goods.
Harmonized Tariff Schedule (HTS). The Harmonized Tariff Schedule is a classification system used by countries to classify products for the purpose of collecting import duties and taxes.
Importer Security Filing (ISF). The Importer Security Filing is a requirement for importers to provide detailed information about the cargo being imported into the United States.
Duty Drawback. Duty drawback is a refund of duties, taxes, and certain fees collected on imported merchandise that is later exported or destroyed.
Customs Bond. A customs bond is a financial guarantee from an insurance or surety company to the government that an importer will pay all applicable customs duties and taxes.
NAFTA. The North American Free Trade Agreement is a trilateral trade agreement between Canada, Mexico, and the United States.
Quota. A quota is a restriction placed on the quantity of a specific product that can be imported into a country in a given period of time.
Valuation. Valuation is the process of determining the value of imported merchandise for customs purposes.

Frequently Asked Questions

What is a Customs Broker?

A Customs Broker is a professional who is licensed by the U.S. Customs and Border Protection to facilitate the import of goods into the U.S. They are responsible for preparing and submitting documentation, arranging for payments, and ensuring compliance with customs regulations.

What services do Customs Brokers offer?

Customs Brokers provide a range of services, including preparing and submitting paperwork, obtaining release of goods from customs, providing information on duties, taxes and other charges, advising on trade compliance issues, and assisting with protests and other formal proceedings.

How much do Customs Brokers charge?

Customs brokers typically charge a fee based on the shipment's value, the complexity of the transaction, and the time required. Fees can range from $50 to $500 or more depending on the circumstances.

Who is responsible for hiring a Customs Broker?

The importer of record is typically responsible for hiring a Customs Broker. In some cases, an exporter or other party may hire a broker on behalf of the importer.

What document is needed to give authority to a Customs Broker?

The importer of record must provide a Power of Attorney document to authorize a Customs Broker to act on their behalf. This document should include the Customs Broker's name and address, a detailed description of the authorized activities, and the signature of an authorized representative.