Types

• Import brokers are also known as freight forwarders, customs brokers and shipping or transportation agents. Larger import brokers may have all of the equipment and licensing to do much of the work themselves. Smaller import brokers may utilize other parties to accomplish certain tasks. Many freight forwarders operate as a Non-Vessel Operating Common Carrier (NVOCC), which means they do not own shipping vessels, but they are able to ship freight on a vessel at contracted rates. Customs brokers handle all of the documentation necessary for international shipments to clear U.S. customs when they arrive.
  
  

Requirements

• In order for an import broker to make arrangements to ship international freight by ocean to the U.S., they must be licensed by the Federal Maritime Commission (FMC) as an Ocean Transportation Intermediary (OTI). Import brokers that frequently handle air freight are licensed by the International Air Transport Association (IATA) as a cargo agent. A customs broker is licensed by Customs and Border Protection. A customs broker may clear the freight on behalf of an importer if the importer issues a power of attorney granting authority.
  
  

Function

• Import brokers play an important role in ensuring that all of the complex arrangements are made to move goods from the foreign point of origin to the destination in the U.S. In order to avoid costly delays, fines and even seizure of goods, the import broker must have a firm grasp of foreign and domestic shipping procedures, customs laws and restrictions for certain commodities. Most import brokers have developed a deep network of counterparts in key geographic locations that can be depended upon to move international freight seamlessly.
  
  

Benefits

• Hiring an import broker to handle international shipments can save an importer a great deal of time and money. An experienced import broker already has connections and established relationships to move imports through all the needed steps. When an import broker arranges for high volumes of shipments, they can negotiate for reduced rates. Because an import broker understands the international shipping process, fees and delays can be avoided.
  
  

Considerations

• When selecting an import broker, one must consider the broker's areas of expertise and amount of experience. Some imported goods are highly regulated and require specific certificates and documentation to enter the U.S. Other goods may be subject to quotas or additional duties to protect U.S. manufacturers. Because the importer is ultimately responsible for goods properly entering the U.S., it is important that the import broker is knowledgeable on the commodity being imported to avoid violating U.S. laws or regulations.