If you’re into the import business, you must have come across the term ‘Customs Broker’ a dozen times. And, you probably would have brushed the idea aside, assuming it’s not worth considering or perhaps still mulling over hiring one. This is where you got it wrong. A customs broker can support your business in so many ways.
Having a professional licensed customs broker by your side can save you time, handle all the paperwork on your behalf, and act as your legal advisor, as well. They can ensure to get your shipment through the customs process quickly and spare you time to focus on other core business operations.
In this article, we will discuss how a customs broker can be beneficial for your business.
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To Stay Legally Compliant
In many countries, the laws and regulations governing the custom process are usually intricate and entangled by bureaucratic processes. A customs broker is assumed to have accurate knowledge about the laws and recent updates. When you hire a customs brokerage service, they advise on the paperwork and even handle it on your behalf.
It’s their responsibility to ensure the proper classification of commodities in the documentation and submit the paperwork to the relevant authorities on the company’s behalf. Hence, businesses aim to outsource these tasks to a customs broker and not their in-house professionals to stay legally compliant and reduce any sort of legal stress.
Customs tariffs and duties are calculated on different parameters. If a company fails to abide by these rules, they may have to face repercussions, often in the form of financial penalties or process delay, which generally affects the supply chain.
Moreover, a customs broker is familiar with HS codes which ensures proper classification at the time of importing goods. Any fallacy in the classification of goods and the CBP (U.S. Customs and Border Protection) can impose punitive duties on your goods. When you have a professional customs brokerage client, they will help you understand the custom law, including the HS codes, to ensure proper classification in the documentation.
Low Shipping Costs
Taking on the task of reducing shipping costs can be quite overwhelming and complex. Businesses can simplify the entire process by partnering with an experienced and knowledgeable brokerage partner. They will analyze your company’s requirements, including cost and lead time, and will accordingly assist you in choosing the best shipping option.
They will then review and evaluate your current supply chain to figure out opportunities to cut off costs. They can also help you cut down unnecessary costs on imported goods which usually are in the form of exemptions on duties and taxes.
Companies involved in importing goods need to have shipment visibility, allowing for advanced planning to facilitate proper customs clearance. An experienced brokerage company would have all the latest technology to offer round-the-clock visibility across different time zones. Real-time tracking ensures coordination among supply chain partners and allows accurate scheduling, including production and shipping schedules.
Thus, it is a good idea to pay the broker to keep real-time tracking of global shipments on your company’s behalf. Just in case any complications arise, they also have contact with customs officials for help.
Saves Your Time and Promotes Peace of Mind
Lastly, hiring a customs broker can save you time. For instance, taking charge of your company’s import process will help ease the burden of your employees, and they will use their time to work on other vital business operations. And it also prevents the chance of errors.
Moreover, knowing you have a licensed broker who you can trust with the legal stuff associated with shipments is relieving. It gives you peace of mind and allows you to conduct your business smoothly.
Helps Clear Shipments With Formal Entry
Commodities, such as food and pharmaceutical products, chemicals, and cosmetics, require a formal entry, which is a formal declaration of particular information on imported goods. These goods are kept by the customs department unless the necessary paperwork and shipment formalities are done.
A customs broker is aware of all the rules and protocols required to go through the formal entry and clear your shipment.
Working with a custom brokerage firm comes with a lot of advantages. The team guides you to conduct your import-export business smoothly while taking care of all the legal formalities, which otherwise can be baffling to manage.
Besides, you get additional logistics services which help you save money and time. Thus, businesses should consider investing in a customs broker!
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