A licensed agent who prepares and files customs entries for importers, classifying goods and arranging payment of duties and fees.
Detailed Definition
A customs broker acts for importers in clearing goods through customs. In the United States, brokers are licensed by U.S. Customs and Border Protection (CBP) under 19 CFR Part 111. Typical work includes classifying goods under the tariff schedule, filing entry documents, calculating and paying duties, and coordinating with other agencies that regulate the cargo. Brokers do not inspect or certify pallets. Compliance of wood packaging with ISPM-15 is the shipper's responsibility and is checked at the border by the authorities.
What a customs broker does and does not do
A broker works from the commercial invoice, packing list and transport documents to prepare the customs entry. They advise on tariff classification and value, file the data electronically, and pay duties on the importer's behalf. Some also handle the release of freight, arrange delivery with a drayage carrier, or set up bonds.
The broker does not check the pallets under the freight. If wood packaging lacks a valid ISPM-15 mark or shows signs of pests, the authorities can hold the shipment, and in the US noncompliant wood packaging can be ordered re-exported. The broker will relay that decision, but cannot fix the pallets.
How pallets affect a customs clearance
- Use pallets with a clear, legible IPPC mark on two opposite sides, or use exempt materials such as plastic or processed wood.
- Tell the broker early what packaging material is used, because some declarations ask about wood packaging.
- Keep supplier records of treatment in case of questions.
Packaging problems are one of the avoidable reasons for delays at the border, and the costs of storage and re-export usually fall on the importer.
Related Glossary Terms
Frequently Asked Questions
Is a customs broker the same as a freight broker?
No. A customs broker handles the regulatory side of importing: classifying goods, filing entries and paying duties, and in the US must hold a license from CBP. A freight broker arranges transportation by matching shippers with carriers and, in the US, operates under authority from the Federal Motor Carrier Safety Administration. Some logistics companies offer both services, but they are separate roles with separate licenses.
Can a customs broker get a shipment released if the pallets are not ISPM-15 marked?
A broker cannot override plant health rules. If inspectors find wood packaging without a valid mark or with live pests, the shipment can be held, and the authorities decide what happens next. In the United States that typically means the wood packaging or the whole shipment must be re-exported. The broker can communicate with the agencies and arrange logistics, but the fix is to ship on compliant packaging in the first place.