What Does a Customs Broker Do? A Plain-English Guide

A customs broker is a person or company licensed by CBP under 19 U.S.C. 1641 to conduct customs business on behalf of importers. In practice, the broker prepares and files your entries, classifies and values the goods from the information you provide, arranges payment of duties and fees, and handles CBP questions on those entries. The broker works under your power of attorney. You remain the importer of record and remain liable.

What a broker typically does

• Files the entry and entry summary, CBP Forms 3461 and 7501. See Form 7501.
• Classifies goods using the descriptions you send.
• Calculates and pays duty, often through the broker's own ACH account.
• Coordinates with other agencies, such as FDA or USDA.
• Answers CBP requests such as a CF28 request for information.

What a broker usually does not do

• Audit past entries for overpayments.
• File drawback, which most brokers do not offer.
• Check every line for missed preferences and exclusions.
• Correct errors after release unless you ask.

None of this is a criticism. Entry filing is a high-volume, deadline-driven business. Recovery work is a different job.

How to oversee your broker

• Download your ACE data and review what was filed. See how to download ACE data.
• Keep a classification database the broker works from.
• Review a sample of entries every month.

Frequently asked questions

Do I need a broker? Not legally, but most importers use one for entry filing.

Is Caspian a customs broker? Caspian is a licensed customs broker, but we do not file your import entries. Your broker keeps that work. We file recovery work: drawback, PSCs, protests and CAPE declarations.

How Caspian works with your broker

Caspian audits what your broker filed and recovers what was overpaid. See our trade audit and duty drawback services.

Works Cited:

• 19 U.S.C. 1641, Customs brokers
• 19 CFR Part 111, Customs brokers