What is a customs broker & why do you need one?

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More than 227,000 importers deal with the Canada Border Services Agency (CBSA) annually.  Most rely on the services of a licensed customs broker to get their shipments cleared at the border. For each of these transactions, reams of critical business data must be generated, about everything from country of origin and destinations, to suppliers, tariff classifications, routings, and intended use.

Traditionally, importers rely on customs brokers to pull that information together and clear the goods through customs. But many importers are learning that it is only part of the story. Customs brokers are now helping importers leverage that information, transforming data into critical business intelligence. Customs brokers are offering a growing range of specialized services to help importers develop new product lines, explore new markets, evaluate the impact of global change, and cut costs.

When selecting a Canadian customs broker, you should ask the following questions:

1.  Does your firm have a specific area of expertise? How do you provide this information to prospective clients?  Can you provide references from current clients with the same or similar imports to mine?

2.  Do you have experience with, and current knowledge of, the goods that will be imported by my business? What do you require from me to begin development of my database records? How do you let your clients know about regulatory changes that affect their goods?

3.  How will we work together to develop a compliance plan to clarify our responsibilities and minimize our exposure to administrative monetary penalties (AMPS)?  And how will we work together to ensure CBSA receives the electronic pre-arrival cargo information needed to meet Advance Commercial Information (ACI) requirements, including the electronic transmission of advance importer data?

4.  What are your release procedures? What are your accounting procedures? What are my security options? Will you require a deposit from me to cover duties and taxes?

5.  Can you provide me with a detailed breakdown of costs and payment options?  What are your charges based upon? How does the customs broker define any “consulting” that may be required? Is there a minimum or maximum fee?

7. Should an error be made in calculating the amount owed to CBSA, what are your recovery procedures? What are my obligations?

8. What information do you have concerning exporting to Canada that I can provide to my suppliers?

9. How many Certified Customs Specialists do you have on staff? Will one of these individuals be handling my importations?

10. Are you affiliated with any foreign customs brokers? Carriers? Freight Forwarders?

11. Can you provide me with a regular report that details my import and export history?

12. Are you a member of the Canadian Society of Customs Brokers? If so, do you subscribe to their e-mail service that provides timely, up-to-date operational and policy information from CBSA and other international trade resources?

Some additional information you should provide to your customs broker

Details about the goods you import and export, including: who manufactures the goods, where the goods are manufactured, the end-use and/or user of the goods, and the value of the goods.

For more information, explore our website or email us at cscb@cscb.ca.