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What is a Customs Broker?

Licensed by Revenue Canada, 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 other government bodies, such as Agriculture Canada or the Ministry of Transportation, 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 Revenue Canada. 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?

1. Risk Management:
   • A customs broker will ensure that the importer is meeting the many new conditions under Canada Border Services Agency (CBSA) on-site compliance. The CBSA has embarked on a new and aggressive method of checking compliance - new on-site compliance will target all importers taking advantage of NAFTA, duty reductions, and other duty relief programs.
   • A customs broker will assist the importer with the increased complexity of NAFTA regulations, enabling him to take advantage of NAFTA and other trade agreement opportunities that can have a significant impact on the firm's bottom line in reducing duties and taxes
   • A customs broker stays abreast of the growing number of rules, regulations, and conditions that allow the importer to qualify for NAFTA.
   • A customs broker provides the timely delivery of goods, which is critical for good client service.
2. 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 is generally clerical in nature with some demand for 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. 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.
3. Decreases the importer's fixed costs
   Customs brokers provide:
   • IT support
   • Hardware
   • Software
   • Hardware/Software maintenance costs
   • Personnel and associated overheads
4. 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).
5. 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?

With a signed Power of Attorney, an individual or a company representative can complete the Customs Declaration on behalf of the said company or a single importer. 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), 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 audits entries and confirms import requirements are compliant. If any information provided to CBSA is incorrect, AMPS Penalties can and will be issued.

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.

What does it cost to use a customs broker?

A brokerage fee is usually determined by the total value of the shipment being imported. In some cases, a set rate or fee is agreed upon between the broker and client.

If our company uses the services of a competing customs broker, what steps are involved with switching to use ABC Customs Brokers?

Changing customs brokers to use the services of ABC Customs Brokers is fairly simple.  You would have to forward ABC a completed and valid General Agency Agreement (Power of Attorney), an Account information Sheet, set up an account and make payment arrangements.   The Client Service team at ABC Customs Brokers would assist in notifying carriers and the previous customs broker.

What paperwork is required?

When importing to Canada a Commercial Invoice can be used. The following information must be noted on the 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 and detailed description of the product(s). A North American Free Trade Certificate (NAFTA) is required to take advantage of preferential duty rates when applicable. ABC Customs Brokers has developed an On-line Forms Management System called FORMLINK. All required forms necessary for importation and freight movement are supplied here. FORMLINK also provides the user with the ability to complete and submit the forms via the internet.

How do I pay Duties and Taxes?

Once credit has been established, an account is created for your company with a line of credit. ABC Customs Brokers can then pay Canada Border Services Agency on your behalf for any monies owing related to the duties and taxes applicable to each shipment processed. ABC Customs Brokers will issue your company an invoice covering all duties, taxes and fees incurred for that shipment. All invoices are required to be paid in full within 15 days of clearance.

What makes ABC Customs Brokers stand above other customs brokers?

ABC Customs Brokers has assembled an experienced service-oriented staff who do not view working with the clients as an inconvenience. Our live reception team is always available to answer your phone calls. We understand that your shipment is a priority to your business.

Should our company use several different customs brokers, depending on the mode of transportation or the location of the entry?

This practice is definitely NOT recommended.  We recommend that a company only use a single customs broker, and build a rapport with a client service representative who becomes familiar with your imported goods.  Using the services of more than one customs broker leaves a company exposed to potential errors and to a Canada Border Services Agency audit.  CBSA views an importer as a single "account", and therefore all shipments regardless of the Port of Entry, mode of transportation, or carrier are applied to the account associated with the company's business.

Can a shipper / exporter to Canada take responsibility for all the fees associated when goods are imported into Canada?

Yes, the exporter may become a Non-resident importer. This is a company with no physical presence in Canada that wishes to take responsibility with Canada Customs and Revenue Agency (CCRA) for all entry issues. This includes all fees, declarations and penalties. As there are many rules and regulations that apply, it can become very tedious keeping track of all the necessary forms. It makes good business sense to have professionals like ABC Customs Brokers Ltd. handle this for you.

When shipping goods by courier, is it recommended that we use the customs brokerage services provided by that of a courier even though we use a different customs broker for our truck, air and sea freight shipments?

This practice is definitely NOT recommended. We recommend that a company only use a single customs broker, and build a rapport with a client service representative who becomes familiar with your imported goods. Using the services of more than one customs broker can expose a company to potential errors.

At which customs ports can ABC Customs Brokers clear goods?

ABC can and does provide customs brokerage services at any Canadian or United States port of entry. In today's electronic world, local agents are rarely required; a central operations business model is more beneficial to a client.

Are there restrictions on what items can be brought into Canada?

Yes, there are many things to take into account. Canada Customs enforces all the regulations required by the nearly 60 other government agencies. Many different items can be prohibited from entering Canada if they do not meet the necessary criteria.

Can ABC Customs Brokers review my entries done by other customs brokers to ensure compliance?

ABC's experienced staff can thoroughly review your previous customs entries and provide solutions and suggestions.  Of course, you will need to supply copies of your Canadian Customs invoices, or commercial invoices, as well as the supporting CBSA forms and the other customs broker's paperwork.

What if my current customs broker mis-classifies my goods?

There could be serious consequences for applying the incorrect H.S. Tariff to your good, including a full customs audit and severe penalties (Administrative Monetary Penalty System) under the Canada Border Services Agency (CBSA). In addition, your import privileges could be suspended by the Canada Border Services Agency. ABC Customs Brokers senior customs brokers will review your entries and ensure all steps have been taken to properly comply with CBSA regulations and tariff.

Is ABC Customs Brokers able to assist with the exporting of goods out of Canada?

ABC Customs Brokers has the expertise on staff to assist with the preparation of documentation and transportation when shipping out of Canada.

Can ABC assist in making transportation arrangements for our goods?

ABC works with many of our clients to assist in making import, export and domestic transportation arrangements for goods moving by truck, air, sea or rail. We employ a dedicated team of experts to assist you in transporting your goods to meet both your required timelines and budget.

Can ABC Customs Brokers educate my staff and I on responsibilities, documentation requirements and regulations of customs procedures?

ABC Customs Brokers hosts regularly scheduled educational seminars and workshops on various Canadian and United States customs topics. In addition, ABC Customs Brokers can build individually tailored seminars and send a presentation team to your offices.

The following FAQ's apply to our affiliate U.S. customs brokerage company, Pacific Customs Brokers Inc.

What is customs broker?

A 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 FDA, Agriculture and Fish & Wildlife. 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 U.S. Customs. 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?

1. Risk Management:
   • A customs broker will ensure that the importer is meeting the ever-changing requirements of the CBP and Homeland Security. Customs and Border Protection have embarked on an aggressive method of checking compliance, targeting all importers taking advantage of NAFTA, duty reductions, and other duty relief programs.
   • A customs broker will assist the importer with the increased complexity of NAFTA regulations, enabling him to take advantage of NAFTA and other trade agreement opportunities that can have a significant impact on the firm's bottom line in reducing duties and taxes
   • A customs broker stays abreast of the growing number of rules, regulations, and conditions that allow the importer to qualify for NAFTA.
   • A customs broker provides the timely delivery of goods, which is critical for good client service.
2. 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 is generally clerical in nature with some demand for 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 CBP. Changes in information regarding the description, value, quantity or origin of the imported goods often requires further research and processing.
   • Customs brokers provide shipping advice, monitoring and tracking of goods.
3. Decreases the importer's fixed costs
   Customs brokers provide:
   • IT support
   • Hardware
   • Software
   • Hardware/Software maintenance costs
   • Personnel and associated overheads
4. 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).
5. Brokerage Fees
   Customs broker fees are usually only a small portion of the your companies overall importing cost.

Can we import our goods without the services of a customs broker?

You can import up to $2,000.00 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.

What does it cost to use a customs broker?

A brokerage fee is usually determined by the total value of the shipment being imported. In some cases, a set rate or fee is agreed upon between the broker and client.

If our company uses the services of a competing customs broker, what steps are involved with switching to use Pacific Customs Brokers Inc.?

Changing customs brokers to use the services of Pacific Customs Brokers Inc. is fairly simple. You would have to forward Pacific a completed and valid General Agency Agreement (Power of Attorney), an Account information Sheet, set up an account and make payment arrangements. A Client Services Representative at Pacific Customs Brokers Inc. would assist in notifying carriers and the previous customs broker.

What paperwork is required?

When importing to the USA, a Commercial Invoice can be used. The following information must be noted on the 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, detailed description of the product(s) and the Federal ID for the Consignee of the product in the USA. A North American Free Trade Certificate (NAFTA) is required to take advantage of preferential duty rates when applicable. Pacific Customs Brokers Inc. has developed an Online Forms Management System called FORMLINK. All required forms necessary for importation and freight movement are supplied here. FORMLINK also provides the user with the ability to complete and submit the forms via the internet.

How do I pay duties and taxes?

Once credit has been established, an account is created for your company with a line of credit. Pacific Customs Brokers Inc. can then pay U.S. Customs and Border Protection on your behalf for any monies owing related to the duties and taxes applicable to each shipment processed. Pacific Customs Brokers Inc. will issue your company an invoice covering all duties, taxes and fees incurred for that shipment. All invoices are required to be paid in full, within 15 days of clearance.

What makes Pacific Customs Brokers Inc. stand above other customs brokers?

Pacific Customs Brokers Inc. has assembled an experienced service-oriented staff who do not view working with their clients as an inconvenience. Their live reception team is always available to answer your calls. They understand that your shipment is a priority to your business.

Can a shipper/exporter from Canada take responsibility for all the fees associated when goods are exported from Canada?

Yes, the exporter out of Canada may be the "Importer of Record" for product entering the USA. A bond will be applied and a Customs assigned number requested identifying the foreign-based company to CBP as doing business in the USA. The "Importer of Record" is liable and responsible for all declarations and penalties. As there are many rules and regulations that apply, it can become very tedious keeping track of all the necessary forms. It makes good business sense to have professionals like Pacific Customs Brokers Inc. to handle this for you.

Should our company use several different customs brokers, depending on the mode of transportation or the location of entry?

This practice is definitely NOT recommended. We recommend that a company only use a single customs broker, and build a rapport with a client service representative who becomes familiar with your imported goods. Using the services of more than one customs broker can expose a company to potential errors and therefore a potential CBP audit. CBP views an importer as a single "account", and all shipments regardless of the Customs port of entry, mode of transportation, or carrier are applied to the account associated with the company's business.

When shipping goods by courier, is it recommended that we use the customs brokerage services provided by that of a courier even though we use a different customs broker for our truck, air and sea freight shipments?

This practice is definitely NOT recommended. We recommend that a company only use a single customs broker, and build a rapport with a client service representative who becomes familiar with your imported goods. Using the services of more than one customs broker can expose a company to potential errors and compliance issues.

At which Customs ports can Pacific Customs Brokers Inc. clear goods?

Pacific Customs Brokers Inc. can and does provide customs brokerage services at any United States or Canada Customs port of entry. In today's electronic world, local agents are rarely required; a central operations business model is more beneficial to a client.

Are there restrictions on what items can be imported into the United States?

Yes, there are many things to take into account with CBP and Homeland Security enforcing regulations that are governed by all government agencies. Many different items can be prohibited from entering the USA if they do not meet the necessary criteria.

Can Pacific Customs Brokers Inc. review my entries done by other customs brokers to ensure compliance?

Pacific Customs Brokers Inc. experienced staff can thoroughly review your previous customs entries and provide solutions and suggestions. Of course, you will need to supply copies of your U.S. Customs Invoices, or Commercial Invoices, as well as the supporting CBP Forms and the other customs brokers paperwork.

What if my current customs broker mis-classifies my goods?

Harmonized Tariff Classification is the ultimate responsibility of the Importer of Record, and it is expected by Customs that reasonable care will be used in this endeavor. There are potential consequences in reporting the incorrect tariff information to Customs, including overpayments or underpayments of duty, potential penalties and interest charges, further scrutiny and delays of your shipments, and the possibility of full Customs audits. The experts at Pacific Customs Brokers Inc. are pleased to assist you in the proper classification and reporting of your goods, with the necessary information given regarding the product.

Is Pacific Customs Brokers Inc. able to assist with the exporting of goods out of the United States?

Pacific Customs Brokers Inc. has the expertise on staff to assist with the preparation of documentation and transportation when shipping out of the United States.

Can Pacific Customs Brokers Inc. assist in making transportation arrangements for our goods?

Pacific Customs Brokers Inc. works with many of their clients to assist in making import, export and domestic transportation arrangements for goods moving by truck, air, sea or rail. They employ a dedicated team of experts to assist you in transporting your goods to meet both your required timelines and budget.

Can ABC Customs Brokers educate my staff and I on responsibilities, documentation requirements and regulations of customs procedures?

ABC Customs Brokers hosts regularly scheduled educational seminars and workshops on various U.S. & Canadian Customs topics. In addition, ABC Customs Brokers can build individually tailored seminars and send a presentation team to your offices.

How can I get more information about ABC Customs Brokers?

Visit the Contact Us page to find ways to reach us.

Why use ABC's Freight Forwarding Services?

ABC employs industry professionals in the various modes of transportation including: air, ocean, truck and rail. This industry experience allows us to have market and carrier knowledge, and to have volume purchasing strength that an individual shipper cannot often achieve.

Why use a freight forwarder rather than booking directly with a carrier?

Freight forwarders are non-asset based service providers which receive client requests and customized services to satisfy the client. ABC 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 ABC assist with non-standard transportation requirements?

ABC has specific expertise with industries and shipments of urgent, oversize / overweight, after-hour shipments or with shipments to remote locations which may require air support, tugboats, and pilot cars or after-hour personal attention.

What are Incoterms?

Visit the Incoterms definitions page for more information.