What is a customs broker? Key information you need to know about customs brokers

Import-export businesses need the support of a customs broker to ensure smooth customs clearance. So, what exactly is a customs broker? What are their main responsibilities? Learn more in the article below.

1. What is a customs clearance agent?

A customs broker is a company specializing in customs services under an agency contract. This means they act on behalf of the importer/exporter, signing and stamping documents in place of the company in the customs declarant field (using ECUS4 software) or using a digital signature to submit declarations (ECUS5 – VNACCS).

The work of a customs broker involves accurately completing customs declarations and determining taxes and other fees to be paid to the state budget. Their authorities include:

• Receiving information from customs authorities regarding customs declarations for goods and transport means, guidance on customs procedures, and dissemination of customs laws.
• Requesting customs authorities to pre-determine codes, origin, and customs value for goods with complete information provided.
• Inspecting goods and taking samples under the supervision of customs officers before declaration to ensure accuracy.
• Requesting customs authorities to re-inspect goods if they disagree with customs decisions before clearance.
• Using customs documents for clearance, transportation, and handling procedures with other agencies according to law.
• Filing complaints or denunciations regarding unlawful acts by customs authorities or officers.
• Requesting compensation for damages caused by customs authorities or officers according to state liability laws.

>> See also: Shipping goods to Canada by sea

Customs clearance agents operate under an authorization contract with import-export owners and are responsible within the scope of authorization.

2. Difference between a customs broker and a hired declarant

Besides customs brokers, hired declarants also provide customs clearance services for import-export businesses. However, there are some differences:

3. Why choose a customs broker for import-export procedures?

From the comparison table above, it’s clear:

Customs brokers have higher service fees but are more reliable than hired declarants. They use their digital signatures and company seals for declarations, so the business owner does not need to use their own signature. If issues arise, the broker is responsible for resolving them. Their staff are professionally trained to ensure quick and accurate customs procedures.

This avoids errors by hired declarants that may cause risks during post-clearance inspections.

3W Logistics is a trusted customs service provider chosen by many businesses. They have a dedicated, well-trained, and experienced customs team providing detailed guidance to clients.

3W Logistics completes all necessary customs procedures and documentation, checks document validity, and provides solutions for transporting goods after clearance, ensuring timely and smooth delivery.

>> See also: Container rental rates

Customs brokers have higher responsibility than hired declarants

4. Electronic customs declaration process for import-export goods

Currently, customs authorities use electronic declaration to speed up the process, saving time and travel costs for brokers and businesses.

Steps for electronic customs declaration:

Step 1: Fill out import/export information.

Declarants enter full export (EDA) or import (IDA) information. The system assigns numbers and indicators for taxes and item codes. The declaration is saved in the VNACCS system.

Step 2: Register the export/import declaration.

After receiving the registration screen (EDC for export or IDC for import), declarants check information. If correct, they submit it to the system. If errors exist, they use EDB (export) or IDB (import) to correct.

Step 3: Check registration eligibility.

Before registration, the system checks if the company meets conditions. If not in overdue debt, suspended, or bankrupt, registration is allowed.

>> See also: Standards for exporting agricultural products to Europe

Companies not eligible for registration will be notified by the system

Step 4: Declaration routing, inspection, and clearance.

The system automatically routes declarations as green, yellow, or red.

– Green channel:

If tax = 0: The system automatically clears goods and issues the clearance decision.

If tax > 0:

If paying via limit or guarantee, the system verifies. If sufficient, the system issues tax receipts and clearance decision; otherwise, it reports an error.

If paying by transfer or cash at customs, the system issues tax receipts. Once payment is accepted by VNACCS, the clearance decision is displayed.

At day’s end, VNACCS summarizes all green-channel declarations and sends to VCIS.

– Yellow and red channel:

Customs broker: Receives routing results, location, inspection form, and submits documents for inspection; pays taxes, fees, charges (if any).

System: Displays declaration with routing code, notifies physical inspection for red channel or special cases, and performs tasks similar to green channel.

Step 5: Amendments during clearance.

Declarants use EDD (export) or IDD (import) to amend. The first amendment displays all previous data; subsequent amendments display EDA01/IDA01. Submit to VNACCS to complete registration.

Amendment number is the last character of the declaration number, max 9 amendments. If no amendment, the last character is 0. Amendments can only be routed yellow or red.

This article has provided information to answer the question “What is a customs broker?” Choosing a professional and reputable customs broker helps businesses clear goods quickly and easily.