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Freight Forwarder vs. Customs Broker: What's the Difference?
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Many exporters assume that freight forwarders and customs brokers are two names for the same thing. This couldn't be further from the truth. This video explains.
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Find 100s of articles about various aspects of exporting on Passages: The International Trade Blog:
The Beginner's Guide to Export Forms:
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Freight Forwarder
Freight forwarders are travel agents for cargo. They’re experts connected within the supply chain who concentrate on the logistics and physical transportation of cargo. They are in touch with any entity in the exporting process who handles or is aware of a shipment moving via truck, boat or plane. They’re in charge of assembling and completing a variety of documents and compliance filings.
Customs Broker
Customs brokers, on the other hand, are regulated by U.S. Customs and Border Protection. They help importers and exporters meet U.S. government requirements governing imports and exports. They could be a private individual, partnership, association or corporation.
Brokers submit necessary information and payments to CBP on behalf of their clients and charge a fee for this service. They should have expertise in entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise.
Understanding the Difference
Here are some other ways to distinguish the differences between the two:
—Freight forwarder is a wide-ranging term. Customs broker is much more specific—among other requirements, U.S. customs brokers must be licensed.
—Many freight forwarders can be customs brokers as well (or have access to brokerage services), but not every customs broker is a freight forwarder.
—Customs brokers focus on the import side of an export transaction. U.S. exporters won’t need a U.S. customs broker, because they are shipping out of the country.
—An exporter’s freight forwarder can work with a customs broker to help facilitate issues with an export transaction.
No matter which route you choose, finding the right partners is invaluable. Shipping logistics can be difficult, detail-oriented and rigorous. These transactions are almost always best handled by an expert.
The best partners will also remind you that you are ultimately liable for your exports, especially when it comes to completing your export documentation. Shipping Solutions is here to be your partner in that part of the export process.
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Chapters
00:37 Freight Forwarder
01:02 Customs Broker
01:41 How Freight Forwarders and Customs Brokers Are Different
***************
Make sure you subscribe to this channel for more practical advice for exporters and importers.
**************
#exportdocumentationsoftware #exportdocuments #usexportinghelp #usexportdocuments #shippingbillforexport #freightforwarder #customsbroker
***************
Find 100s of articles about various aspects of exporting on Passages: The International Trade Blog:
The Beginner's Guide to Export Forms:
***************
Freight Forwarder
Freight forwarders are travel agents for cargo. They’re experts connected within the supply chain who concentrate on the logistics and physical transportation of cargo. They are in touch with any entity in the exporting process who handles or is aware of a shipment moving via truck, boat or plane. They’re in charge of assembling and completing a variety of documents and compliance filings.
Customs Broker
Customs brokers, on the other hand, are regulated by U.S. Customs and Border Protection. They help importers and exporters meet U.S. government requirements governing imports and exports. They could be a private individual, partnership, association or corporation.
Brokers submit necessary information and payments to CBP on behalf of their clients and charge a fee for this service. They should have expertise in entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise.
Understanding the Difference
Here are some other ways to distinguish the differences between the two:
—Freight forwarder is a wide-ranging term. Customs broker is much more specific—among other requirements, U.S. customs brokers must be licensed.
—Many freight forwarders can be customs brokers as well (or have access to brokerage services), but not every customs broker is a freight forwarder.
—Customs brokers focus on the import side of an export transaction. U.S. exporters won’t need a U.S. customs broker, because they are shipping out of the country.
—An exporter’s freight forwarder can work with a customs broker to help facilitate issues with an export transaction.
No matter which route you choose, finding the right partners is invaluable. Shipping logistics can be difficult, detail-oriented and rigorous. These transactions are almost always best handled by an expert.
The best partners will also remind you that you are ultimately liable for your exports, especially when it comes to completing your export documentation. Shipping Solutions is here to be your partner in that part of the export process.
***************
Chapters
00:37 Freight Forwarder
01:02 Customs Broker
01:41 How Freight Forwarders and Customs Brokers Are Different
***************
Make sure you subscribe to this channel for more practical advice for exporters and importers.
**************
#exportdocumentationsoftware #exportdocuments #usexportinghelp #usexportdocuments #shippingbillforexport #freightforwarder #customsbroker
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