In this installment in Trade Risk Guaranty's webinar series, we are discussing the role of Customs Brokers and Freight Forwarders in the process of importing in the United States.
The following topics are covered in detail:
- What Are Customs Brokers?
- What Are Freight Forwarders?
- 3 Questions to Ask Your Customs Broker and Freight Forwarder.
- Where Can You Find Customs Brokers & Freight Forwarders
- The Differences Between Customs Brokers & Freight Forwarders
Watch the webinar here: https://youtu.be/M7le3J_0mz8
3. Located in Beautiful
Bozeman Montana
Established in 1991
Direct-to-Importer
Business Model
Over 10,000 U.S.
Customs Bond & Marine
Cargo Insurance Clients
TRADE RISK
GUARANTY
BROKERAGE
SERVICES, LLC
5. TODAY’S WEBINAR TOPICS
What Are Customs Brokers & 3 Great
Questions To Ask Them
What Are Freight Forwarders & 3 Great
Questions to Ask Them
Where Can You Find CBs & FFs
The Differences Between CBs & FFs
7. WHAT ARE CUSTOMS BROKERS?
Definition
Customs brokers are private individuals, partnerships, associations
or corporations licensed, regulated and empowered by U.S.
Customs and Border Protection (CBP) to assist importers and
exporters in meeting Federal requirements governing imports and
exports. Brokers submit necessary information and appropriate
payments to CBP on behalf of their clients and charge them a fee
for this service.
Brokers must have expertise in the entry procedures, admissibility
requirements, classification, valuation, and the rates of duty and
applicable taxes and fees for imported merchandise.
9. WHAT ARE CUSTOMS BROKERS?
Customs Broker Are…
• Licensed via rigorous exam by government
• Experts on Customs documentation & processes
• Important liaison between an Importer and Customs
10. The Importer of
Record, not the
Customs
Broker working
on their behalf,
will be held
accountable
for all goods
entered into
the U.S.
11. WHAT ARE CUSTOMS BROKERS?
A Day in the Life of a Customs Broker
• Accurately fill-out and file paperwork for your Entry
Summary 7501
• File for your Release of Goods from Customs
• Pay Duties, Fees, etc. as determined by 7501
• Complete Importer Security Filing (ISF)
• Helpful source to classify their goods
13. IMPORTING IN THE UNITED STATES
Before Arrival in the United States
• Importer Security Filing must be completed 24 hours
before goods are loaded on an ocean vessel.
• Arrangements must be made at the CBP Port of Entry
where duties and documentation will be filed. The
Customs Broker on behalf of the Importers must
coordinate with the port before the goods arrive.
15. IMPORTING IN THE UNITED STATES
Goods Have Arrived at the Port
• File Cargo Release
• This releases the goods from CBP custody and declares that the
importer has the right to make entry.
• File Entry Summary
• CBP Form 7501 is a key document for CBP as it includes the
importer’s declarations as to the classification, origin, and value of
the imported merchandise.
• Pay Estimated Duties
• This is the estimated amount of duties the Importer is to pay at
the time of entry into the U.S., and is based on CBP Form 7501
16. QUESTIONS TO ASK YOUR BROKER
A Few Examples
• How will you help my company ensure proper compliance
with Customs regulations?
• Do you have any pending lawsuits, violations, and/or have
you been sanctioned by Customs?
• How much do you cost?
18. WHAT ARE FREIGHT FORWARDERS?
Definition
Firm specializing in arranging storage and shipping of merchandise
on behalf of its shippers. It usually provides a full range of services
including: tracking inland transportation, preparation of shipping
and export documents, warehousing, booking cargo space,
negotiating freight charges, freight consolidation, cargo
insurance, and filing of insurance claims. Freight forwarders
usually ship under their own bills of lading or air way bills (called
house bill of lading or house air waybill) and their agents or
associates at the destination (overseas freight forwarders) provide
document delivery, deconsolidation, and freight collection
services. Also called forwarder.
19. WHAT ARE FREIGHT FORWARDERS?
Freight Forwarders Are…
• Experts in Logistics, trade routes, and freight management for
either domestic or international shipments
• Classic Examples: Fed Ex, UPS, DHL, etc.
20. WHAT ARE FREIGHT FORWARDERS?
Common Terms Explained…
• Freight Consolidation
• The means by which multiple smaller shipments, usually
from different Importers, are grouped together in an effort
to completely fill shipping containers.
• Freight Deconsolidation
• This occurs after the goods, having been previously
consolidated, arrive at their shared destination and are
separated back out into the smaller shipments.
21. WHAT ARE FREIGHT FORWARDERS?
Common Terms Explained…
• FCL/LCL (Full Container Load/Less Than Container Load)
• Are your goods the only goods in the shipping container
(FCL), or is it a shared space with one or more Importers
(LCL)
• FTL/LTL (Full Truck Load/Less Than Truck Load)
• Instead of a shipping container a truck load is utilized as the
main means of containment. Will your goods require a full
truck load(FTL), or do you require smaller specialized
vehicles to move your goods(LTL)?
22. WHAT ARE FREIGHT FORWARDERS?
Common Terms Explained…
• Ocean Carrier
• This generally refers to the shipping lines that operate the
cargo ships that are physically moving the goods between
countries. ex. Maersk, Hapaq-Lloyd, CMA CGM Group
• NVOCC – Non-Vessel Operating Common Carrier
• NVOCC’s are similar to carriers, however they don’t own the
cargo ships, but instead have purchased slots on the cargo
ships from the shipping line.
23. QUESTIONS TO ASK YOUR FORWARDER
Freight Forwarders Are…
• Do they offer the services you require?
• How will they manage your shipments, and how will you interact
with them?
• How much experience do they have?
24. WHERE TO FIND A CB/FF?
Some places to look…
• Google Search
• Concentrated around ports, however they exist in every state
• For CB, Customs has an interactive map that breaks Customs
Brokers out by port
• Our sister company, Strix, is both FF/CB
25. COVERED IN TODAY’S WEBINAR
What Are Customs Brokers & 3 Great
Questions To Ask Them
What Are Freight Forwarders & 3 Great
Questions to Ask Them
Where Can You Find CBs & FFs
The Differences Between CBs & FFs