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.