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Customs Brokerage
What is a customs broker?
[in Canada] Licensed by the Canada Border Services Agency (CBSA), a customs broker may act as an agent for commercial businesses importing product to Canada in order for a shipment to be released by Canada Customs and 9 participating government agencies (PGA’s), such as Canadian Food Inspection Agency, Health Canada or Transport Canada, all of which may require forms and documents to be supplied to them. A Harmonized System Tariff classification number must be applied to each product imported. This code determines the rate of duties and taxes that must be paid to CBSA.
[in U.S.] A customs broker is licensed by U.S. Customs and Border Protection (CBP) to conduct CBP business on behalf of importers who give the broker power of attorney to act as an agent for their commercial businesses importing product into the USA. This includes, but is not limited to, government agencies such as CBP, FDA, NHTSA, EPA, USDA and USFWS. All required documents and forms must be supplied to these agencies with a Harmonized System Tariff classification number for each product imported. This code determines the rate of duties and taxes that must be paid to the U.S. Treasury department through CBP.
With all the changing rules and regulations in cross-border transactions, it makes good business sense to use a customs broker
What is the advantage of using a customs broker?
- Risk Management – A customs broker can help ensure that the importer is meeting all regulations governing the import and export of goods traveling across Canadian/U.S. borders.In Canada, the CBSA employs detailed post entry verifications as a way of monitoring importers compliance obligations relating to import and export regulations, USMCA/CUSMA or other free trade agreements, duty reductions, customs valuation and duty relief programs.Non-compliance can lead to significant penalties in both Canada and the U.S.. Customs brokers can assist you in managing your compliance and reducing the cost of non-compliance.
- A customs broker can assist the importer with the increased complexity of USMCA/CUSMA regulations, enabling them to take advantage of it and other free trade agreement opportunities that can have a significant impact on a company’s bottom line, through the reduction of import duties and taxes in the three USMCA/CUSMA eligible countries.
- A customs broker stays abreast of the growing number of rules, regulations, and conditions that allow the importer to qualify for Free Trade Agreements.
- A close relationship with a customs broker can help expedite the timely delivery of goods.
- Flexible staffing – Customs brokers alleviate the need for importers to have staff with specialized customs knowledge and so frees up the importer to concentrate on revenue-generating core competencies.
- Customs brokers manage peaks and valleys of importing volumes, creating automated entry documents from previously classified goods. This work requires knowledge of customs entry regulations.
- Customs brokers provide post-entry work that may take the form of a refund or other payment amendment request to the CBSA in Canada; or a post summary correction request to the CBP resulting in a refund or supplemental duty tender in the U.S.. Changes in information regarding the description, value, quantity or origin of the imported goods often requires further processing.
- Customs brokers provide shipping advice and monitoring and tracking of goods.
- Customs brokers provide IT support, Hardware, Software, Hardware/Software maintenance costs, personnel and associated overheads, required to report goods electronically to CBSA or CBP.
- Passive Control – New technology on the part of the customs broker gives importers the ability to gain control over importing information without taking on the function (e.g. web-based trade information management solutions).
- Brokerage Fees – Customs broker fees are usually only a small portion of your company’s overall importing cost.
Can we import our goods without the services of a customs broker?
[in Canada] An individual can represent themself or a company employee can represent a company, without a signed Power of Attorney from that company, and then can complete Customs Declaration on behalf of themselves or the said company. By completing the Customs Declaration (B3 Entry), the individual is essentially declaring the entry is 100% correct. This would include import requirements being met by other governmental departments (i.e. The Canadian Food Inspection Agency), ensuring the correct HS Tariff Number(s) have been used, and all of the Customs coding information on the B3 Form is correct. Canada Border Services Agency (CBSA) often audit entries and confirms import requirements are compliant. If any information provided to CBSA is incorrect, AMPS Penalties can and will be issued. Only a licensed customs broker can represent companies, other than their own firm, provided that a General Agency Agreement has been completed.
[in U.S.] You can import up to $2500.00 without the assistance of a customs broker however, it is always up to the discretion of the officer whether they accept your declaration or request that you obtain the services of a broker.
Do I need a customs broker for personal goods?
No, you are not required to have a customs broker to assist you in clearing your goods through Customs. You may choose to clear them on your own, but it will always be up to the discretion of the attending officer if he / she requires you to present a formal Customs entry.
If our company uses the services of a competing customs broker, what steps are involved with switching to use Allmin International?
Changing customs brokers to use the services of Almin International is fairly simple.
You would have to forward Cole a completed and valid General Agency Agreement [in Canada] or valid Power of Attorney [in U.S.], an Account information Sheet, set up an account and make payment arrangements.
The Account Representative at Allmin International would assist in notifying carriers and the previous customs broker.
What paperwork is required?
When importing to Canada either a Commercial Invoice or Canada Customs Invoice (CCI) is normally used. In the U.S. a Commercial Invoice can be used. The following information must be noted on either invoice; total value of goods, currency of purchase, country of origin (of manufacture), shipper and consignee full name and address as well as a piece count, weight and detailed description of the product(s). A USMCA/CUSMA or other free trade certificates are required to take advantage of preferential duty rates when applicable. All required forms necessary for importation and freight movement are provided on our website under Tools & Resources_Forms.
Got Questions?
Freight Forwarding
Why use Allmin’s freight forwarding services?
Why use a freight forwarder rather than booking directly with a carrier?
Freight forwarders are non-asset-based service providers that receive client requests and customized services to satisfy the client. Allmin will assist with the origin point loading and transport, destination on-forwarding insurance requirements and load consolidations – truly door-to-door solutions. Often at times, carriers are merely interested in building loads for pre-determined routes with company owned vehicles, not door-to-door solutions.
Can Allmin assist with non-standard transportation requirements?
For large jobs that require the coordinated transport and customs clearance of over-dimensional, overweight and high-value project cargo – those moves that usually combine complex logistical challenges with project-critical timelines – Allmin International’s Project Logistics team has the know-how and experience to get the job done…on time, on budget, anywhere in the world.
What are Incoterms?
Good question! Have a look at our blog article, “Providing clarity in International Trade” for more information.
If our company uses the services of a competing customs broker, what steps are involved with switching to use Allmin International?
Changing customs brokers to use the services of Almin International is fairly simple.
You would have to forward Cole a completed and valid General Agency Agreement [in Canada] or valid Power of Attorney [in U.S.], an Account information Sheet, set up an account and make payment arrangements.
The Account Representative at Allmin International would assist in notifying carriers and the previous customs broker.
What paperwork is required?
When importing to Canada either a Commercial Invoice or Canada Customs Invoice (CCI) is normally used. In the U.S. a Commercial Invoice can be used. The following information must be noted on either invoice; total value of goods, currency of purchase, country of origin (of manufacture), shipper and consignee full name and address as well as a piece count, weight and detailed description of the product(s). A USMCA/CUSMA or other free trade certificates are required to take advantage of preferential duty rates when applicable. All required forms necessary for importation and freight movement are provided on our website under Tools & Resources_Forms.
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Allmin is a logistics solutions provider offering a full spectrum of services from customs brokerage, freight forwarding, and trade consulting.