How to Choose a Custom Brokerage Company?

How to Choose a Custom Brokerage Company?

Before knowing how to choose a custom brokerage services provider company, it is important to understand its importance. Why does a company need a customs broker in the first place?

A customs broker handles the declaration of your shipments via international customs. Brokers obtain custom permits for goods entering and leaving through particular jurisdiction.

We will discuss a few important tips for choosing any custom brokerage company for your business.

Guidelines for choosing the right customs broker for your Business

1-Choose a broker with experience in your Industry

A broker with prior experience in your industry saves you time and money as well. When you go with a general customs broker, there are chances that he may take time to understand how the thing works.

Not all brokers are experienced with specific products or specific government agencies. It requires you to select the broker with experience that meets your industry requirements.

It is the first and critical step you take when choosing a customs broker. If you do well at this stage, you will surely save yourself from many unnecessary headaches.

2-Choose a dedicated Customs Broker

If you are importing or exporting products in high volume, a dedicated customs broker is what you need. Why? The reason is simple customs brokers do have the required resources and technology to take care of everything.

What are the tasks that dedicated customs brokers perform? Dedicated customs brokers do not manage warehouses or help move cargo over international trade lanes.

Their main focus is customs compliance and trade facilitation. And it often play a vital role in the transportation of your goods in international customs. So, you need the right individual or team of individuals to perform these tasks.

3-Strong relationship with Government Authorities

Above all, customs brokers must have a strong relationship with government authorities locally and globally. Why is that important? Different governments operate on different rules, so knowing them is the first step.

A strong relationship is immensely beneficial for resolving issues that could come up during the normal shipping process.

It can be possible if the customs broker is certified in government customs and security programs such as C-TPAT (Customs-Trade Partnership against Terrorism).

4-Use of Technology

The use of technology is one of the main factors to consider before drawing a contract with any Custom Clearance services provider. You need to know what technology they will be using in the areas like shipment tracking visibility and customs clearance capabilities.

5-Choose a Broker with Positive References

You will lose big if you hand over your business to non-professional brokers. You cannot afford to have someone non-professional taking a huge position in your business.

You must do proper research before selecting any Air freight services or Ocean freight services company. At times custom brokers do not reveal their clients for confidentiality reasons.

But you must ask them for some testimonials to judge what they offer.

This way, you will be able to see the potential of the customs brokers. Moreover, you can ask the third party for unbiased reviews and opinions regarding a particular brokerage company.

6-Choose approved Custom Brokers

It is important to go with a broker that understands the importance of using an approved Customs declaration system. Moreover, the system must have new technology in place.

When you choose a broker with their technology resources, you can easily create a link to your company’s ERP. It will ensure the swift transfer of commercial invoices. Furthermore, they will be able to send you approved custom permits using that system link.

Technology plays an important role when it comes to dealing with customs. More importantly, it makes your tasks much easier.

7-Choose a Broker that can handle your volume

Do you need a broker for a large volume of goods? If yes, it is better to go with a broker that can handle and give 100 percent to your work only.

Your custom broker needs to know every tiny detail of your company and its imports and export requirements. This way, he will be better able to utilize the available resources and time.

With advance export declaration (AED) in several jurisdictions, it becomes difficult for custom brokers to deal with more than one client at a time.

8-Draw up a Dedicated Contract

Before starting working with any customs broker, it is important to draw a clear contract to protect the interests of all. Ensure that you get a clear working agreement on paper that can be used if any issues arise.

If your broker objects down the lane, you can explain the contact to keep things moving smoothly. The agreement should cover pricing, scheduling, ports of usage, and termination policies.

9-Shop Around

It is one of the essential tips you need to consider before getting involved with any customs brokerage company. You must never select one broker without looking at other available options.

It is worth spending some time to find the right broker for your business rather than get the wrong broker in a hurry.

It would help if you chose the customs broker depending on the requirements of your business. You can compare pricing, experience, use of technology, and more.

After speaking with different brokers, list the pros and cons and select the best among them.

Conclusion

You know what things you need to keep in mind before choosing any custom brokerage company. So you must follow every guideline before going into a contract with any Custom broker.

Your business deserves to be in safe hands, and you can never compromise on that fact. You need someone reliable and experienced so you can sit and relax while he will look after all the process.

Above all, you must go with a broker who has vast experience in your industry. That will save you a lot of money, time, and effort.

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