What is a Customs Broker?

A customs broker is a private individual or company licensed by U.S. Customs and Border Protection (CBP) to conduct customs business on behalf of importers. In practical terms, a customs broker is the person who files the paperwork, pays the duties, and ensures your imported goods comply with all federal regulations-so your shipment clears the border legally and quickly.

What Does a Customs Broker Do?

When goods arrive at a US port-whether by ocean, air, truck, or rail-they cannot be released to the importer until CBP clears them. A customs broker handles this entire process:

• Classification, Determines the correct HTS (Harmonized Tariff Schedule) code for each product, which sets the duty rate
• Valuation, Confirms the declared value of goods for duty calculation
• Entry Filing, Submits the customs entry electronically via ACE (Automated Commercial Environment)
• Duty Payment, Calculates and pays all applicable duties, taxes, and fees to CBP
• PGA Compliance, Files required data to FDA, USDA, EPA, CPSC, TTB, and other Partner Government Agencies
• Exam Coordination, Manages CBP and PGA examinations if your cargo is selected

Do I Need a Customs Broker?

Legally, you can file your own customs entries as an importer. In practice, almost all commercial importers use a licensed customs broker. The regulations are complex, the penalties for errors are severe (including seizure of goods and fines), and the filing systems require specialized software and expertise.

A customs bond is required for any commercial import valued at $2,500 or more, and a broker can help you obtain one. For goods regulated by FDA, USDA, EPA, or other agencies, a broker is essential to ensure proper PGA filings are submitted with your entry.

How to Choose a Customs Broker

Look for a broker who specializes in your commodity type. A broker who handles food imports daily will catch labeling issues, Prior Notice requirements, and FSVP obligations that a generalist might miss. Ask about their:

• Commodity expertise, Do they regularly handle your type of goods?
• Filing speed, Do they guarantee same-day ISF? How far in advance do they file ocean entries?
• Communication, Will you get a dedicated point of contact?
• Licensing, Are they fully licensed and bonded by CBP?

Customs Broker vs. Freight Forwarder

A customs broker handles regulatory compliance and CBP filings. A freight forwarder handles the physical transportation of goods. Some companies do both, but they are fundamentally different licenses and services. Allied CHB is a dedicated customs brokerage-we do not forward freight. Our sole focus is clearing your goods accurately and efficiently.