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AMA: Customs Brokerage/Freight Forwarding (International Logistics)

Ask me anything!

Rsimmons016

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Thanks for the AMA @Rsimmons016 and welcome to the forum.

Question: Not sure if you ever dealt with Europe: What's the best approach if I wanted to import apparel (i.e bike helmets) from England to Canada? Would you re-routed somewhere else to save costs? I'm trying to figure the most cost effective way to get this product to Canada.

Thanks in advance.


Hello Phenom,

Yes, I work with Europe regularly. The import process into Canada is quite similar to the process into the U.S. However, the Tariff rates are not. The most cost effective option would be to find a Canadian Customs Broker at the port in which you plan to import your goods. Contact more than one ask questions and get quotes from all of them. I would recommend using the one that you feel "guides" you the best and explains the process most complete, not necessarily the least expensive one.

If you receive any information that your unsure of or have questions don't hesitate to reach out to me.
 
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Rsimmons016

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BTW the OP hasn't logged in for the past month

Hello Vigilante,

You are right I haven't been on much lately. The past few months have been quite busy as all of my licenses were issued and I have been in full force working on my Fastlane! I do keep an eye out for anyone in need, and will continue to help out as much as I can! :)
 

Leo Hendrix

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Thanks @Rsimmons016 that has helped and even the advice you supplied to Phenom as great as I am talking to customs agents/brokers now...I will just read up on Incoterms and other relavant ICC documents now.
 

Ramo25

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Welcome to the forum @Rsimmons016 and thank you for the AMA. Quick question. I read you are in the process of opening your own brokerage/forwarding company. Based on your knowledge, how many of these companies are there in the US?
 
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Rsimmons016

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Thanks @Rsimmons016 that has helped and even the advice you supplied to Phenom as great as I am talking to customs agents/brokers now...I will just read up on Incoterms and other relavant ICC documents now.

Hello Leo,

No worries! If you have any additional questions or need any guidance don't hesitate to let me know.

Good Luck with your business venture!
 

Rsimmons016

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Welcome to the forum @Rsimmons016 and thank you for the AMA. Quick question. I read you are in the process of opening your own brokerage/forwarding company. Based on your knowledge, how many of these companies are there in the US?

Hello Ramo25,

Thank you! There are A LOT of Brokers/Forwarders in the U.S. Are you interested in getting into this field? Or are you trying to import/export and want to see how many options you have?
 

Ramo25

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Hello Ramo25,

Thank you! There are A LOT of Brokers/Forwarders in the U.S. Are you interested in getting into this field? Or are you trying to import/export and want to see how many options you have?

I find the import/export business extremely interesting with the little experience I have buying products oversees, but I am really curious to know more about the day-to-day activities of being a broker/forwarder.

Can you go over what a typical day is like? Also do you see this as a growing industry?
 
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Rsimmons016

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I find the import/export business extremely interesting with the little experience I have buying products oversees, but I am really curious to know more about the day-to-day activities of being a broker/forwarder.

Can you go over what a typical day is like? Also do you see this as a growing industry?

That's Great! This is a very good industry to get into! Yes it is growing and will continue to grow. Like anything else you have to get your foot in the door and learn!

Even though in the same industry there are three main avenues you can pursue; Imports, Customs Brokerage, and Exports. These are all completely different businesses and are not as closely related as it would seem. Once you get enough experience and make all the right contacts you can set up your own office and build your business.

Exports:
Main Customer is U.S. manufacturers/suppliers
Coordinate with Overseas Agents
Negotiate contracts with Airlines/Steamship Carriers
Obtain bookings with Airlines/Steamship Carriers
Consolidate multiple shipments to same final destination (Overseas City/Country)
Generate export packages for Customs/Carriers
Work with Hazmat companies to ensure all hazardous cargo is packed, documented, and declared properly
The export side is always a time crunch, you have meet the cut offs for the carriers or you will miss the departure.
To open office you have to apply and receive OTI license
No license required to work in field

Imports:
Main customer is U.S. Importers as well as Overseas agents
Work closely with Overseas Agents
Work closely with Customs Brokers
Consolidate multiple shipments destined to your U.S. location
Deconsolidate shipments
Coordinate delivery (If broker doesn't)
To open office you have to apply and receive OTI license
No license required to work in field

Customs Brokerage:
Main Customer is U.S. Importers
Work Closely with import forwarders
Work Closely with Customs
Work Closely with Other Government Agencies
Have extensive knowledge on customs import rules and regulation
Process customs clearance for import shipments
Coordinate exams with Customs and Other government agencies
Forward all releases to Freight Forwarders warehouse
Coordinate delivery of shipments
Educate importers of regulations for different items they are interested on importing
To open office you have to pass Brokers exam, apply and receive Customs Brokers license
No license required to work entry level positions
 

Leo Hendrix

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What about as an International Trade Broker?...ie acting as a go between or middleman after making offers to sell to suppliers and selling to buyers with your commission added...(simplified)
 

Rsimmons016

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What about as an International Trade Broker?...ie acting as a go between or middleman after making offers to sell to suppliers and selling to buyers with your commission added...(simplified)

Hello Leo,

I don't understand your question. What about them?
 
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Ramo25

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Wow, thanks for that detailed answer. Really shined a light into the industry and all the differences between the 3
That's Great! This is a very good industry to get into! Yes it is growing and will continue to grow. Like anything else you have to get your foot in the door and learn!

Even though in the same industry there are three main avenues you can pursue; Imports, Customs Brokerage, and Exports. These are all completely different businesses and are not as closely related as it would seem. Once you get enough experience and make all the right contacts you can set up your own office and build your business.

Exports:
Main Customer is U.S. manufacturers/suppliers
Coordinate with Overseas Agents
Negotiate contracts with Airlines/Steamship Carriers
Obtain bookings with Airlines/Steamship Carriers
Consolidate multiple shipments to same final destination (Overseas City/Country)
Generate export packages for Customs/Carriers
Work with Hazmat companies to ensure all hazardous cargo is packed, documented, and declared properly
The export side is always a time crunch, you have meet the cut offs for the carriers or you will miss the departure.
To open office you have to apply and receive OTI license
No license required to work in field

Imports:
Main customer is U.S. Importers as well as Overseas agents
Work closely with Overseas Agents
Work closely with Customs Brokers
Consolidate multiple shipments destined to your U.S. location
Deconsolidate shipments
Coordinate delivery (If broker doesn't)
To open office you have to apply and receive OTI license
No license required to work in field

Customs Brokerage:
Main Customer is U.S. Importers
Work Closely with import forwarders
Work Closely with Customs
Work Closely with Other Government Agencies
Have extensive knowledge on customs import rules and regulation
Process customs clearance for import shipments
Coordinate exams with Customs and Other government agencies
Forward all releases to Freight Forwarders warehouse
Coordinate delivery of shipments
Educate importers of regulations for different items they are interested on importing
To open office you have to pass Brokers exam, apply and receive Customs Brokers license
No license required to work entry level positions

Thank you for that detailed answer. Really shines a light into the industry. I had no idea how much goes into overseas shipments.
 

Leo Hendrix

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Sorry @Rsimmons016 what I mean is where do International Trade Brokers come in if here or this thread is not related...? ie you said there were 3 sections to this industry import,export and customs....so Trader brokers would be a whole different field?
 

Rsimmons016

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Sorry @Rsimmons016 what I mean is where do International Trade Brokers come in if here or this thread is not related...? ie you said there were 3 sections to this industry import,export and customs....so Trader brokers would be a whole different field?

Hello Leo,

International Trade Brokers are not in the logistics and customs clearance of the cargo. They would be a customer of the freight forwarder or customs broker.
 
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Leo Hendrix

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Right ok...good just had to make it clear, thanks I am just getting into that now.
 

Leo Hendrix

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Thank you my main concern now is ensuring I get all the processes right...I just don't want to get into over analysis paralysis, although it does not seem very complex right now. So in saying that @Rsimmons016 do you have any experience with International Trade Brokering? or seen any threads, posts or users with experience in that field?
 
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Bimmer

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Hello,

First of all thank you for your time to answer our questions, appreciate it!

I'm not sure if you have an answer to this question but i'll give it a go anyway.

My business is located in the netherlands (europe) and i'm looking to sell my products in the US. Therefore i will need to sent the products from my supplier located in china straight to the fulfillment company in the US, transport will be by plane. So as a company located in the netherlands i'm importing products from china into the US.

What do i have to do to get this imported without any problems into the US, what things are involved? I really have no clue....
 

Rsimmons016

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Thank you my main concern now is ensuring I get all the processes right...I just don't want to get into over analysis paralysis, although it does not seem very complex right now. So in saying that @Rsimmons016 do you have any experience with International Trade Brokering? or seen any threads, posts or users with experience in that field?

Hello Leo,

Sorry I do not have any experience in this field.
 

Rsimmons016

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Hello,

First of all thank you for your time to answer our questions, appreciate it!

I'm not sure if you have an answer to this question but i'll give it a go anyway.

My business is located in the netherlands (europe) and i'm looking to sell my products in the US. Therefore i will need to sent the products from my supplier located in china straight to the fulfillment company in the US, transport will be by plane. So as a company located in the netherlands i'm importing products from china into the US.

What do i have to do to get this imported without any problems into the US, what things are involved? I really have no clue....


Hello Bimmer,

It is my pleasure to help as much as possible!

What products are you interested in importing into the U.S.?
 
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Bimmer

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Hello Bimmer,

It is my pleasure to help as much as possible!

What products are you interested in importing into the U.S.?

Thanks.

The products are 3 small plastic pieces, one piece runs on a battery.

Sorry for being a bit vague but don't want to expose my business with all the hungry people here, if you need more details i can sent you an PM :)
 

Rsimmons016

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Thanks.

The products are 3 small plastic pieces, one piece runs on a battery.

Sorry for being a bit vague but don't want to expose my business with all the hungry people here, if you need more details i can sent you an PM :)

Hello Bimmer,

No worries. I think it would be best for you to PM me. Can't give you good advise without knowing what you have going on.
 

RE Taipan

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RSimmons....I did not see you answer/address this (and if you did, please excuse me)....it might be helpful to the folks here to discuss the element of FOB point...what this is and how it can have a significant impact on a shipment price/performance and liability, etc.
 

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hello @Rsimmons016 i am a fellow freight forwarder with 7 yrs in the industry. i dont have a US Citizenship so i cannot currently pursue the customs brokerage exam, but i may change this one day.


For the people following this thread, i want to mention that the test to become a licensed US Customs Broker is TOUGH!
From what i hear, less than 10% of the people taking the test actually pass it.
You must be a US citizen to take the test, generally ones you pass you have the license for life.

Treat your customs broker right. Ultimately the Importer of Record is responsible for duties/taxes and knowing the product. You have to do your due diligence and while a Customs Broker can help you, they can only go off the information you provide to them.
 

Rsimmons016

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RSimmons....I did not see you answer/address this (and if you did, please excuse me)....it might be helpful to the folks here to discuss the element of FOB point...what this is and how it can have a significant impact on a shipment price/performance and liability, etc.

Hello RE Taipan,

Sorry for the delayed response! Below is an Incoterms Chart. This chart illustrates at which point the seller/buyer assume responsibility for the cargo.

FOB – FREE ON BOARD
•Seller delivers goods across the ship’s rail at the named port of shipment
•The buyer bears all costs and risks of loss or damage to the goods from that point
•Term used for sea transport only
 
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Rsimmons016

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hello @Rsimmons016 i am a fellow freight forwarder with 7 yrs in the industry. i dont have a US Citizenship so i cannot currently pursue the customs brokerage exam, but i may change this one day.


For the people following this thread, i want to mention that the test to become a licensed US Customs Broker is TOUGH!
From what i hear, less than 10% of the people taking the test actually pass it.
You must be a US citizen to take the test, generally ones you pass you have the license for life.

Treat your customs broker right. Ultimately the Importer of Record is responsible for duties/taxes and knowing the product. You have to do your due diligence and while a Customs Broker can help you, they can only go off the information you provide to them.

Hello Greg,

Yes the importer of record (owner of goods) is ultimately responsible for all duties/taxes and any other customs related fees (including exams and penalties). This is the reason I started this thread. I wanted to help the members with their due diligence and advise of the intricacies importing into the US.

You are correct about the exam, on average only 4-6% of the people who sit for exam pass it!
 

RE Taipan

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Hello RE Taipan,

Sorry for the delayed response! Below is an Incoterms Chart. This chart illustrates at which point the seller/buyer assume responsibility for the cargo.

FOB – FREE ON BOARD
•Seller delivers goods across the ship’s rail at the named port of shipment
•The buyer bears all costs and risks of loss or damage to the goods from that point
•Term used for sea transport only

Rsimmons016,
No problem...I thought it would be helpful to others to include this information.

In my experience, FOB terms have been used modernly in more than just international seaborne shipment, although that is clearly where they originated and predominate. This could be b/c North American (and the US, primarily) make use of FOB points a bit differently than the rest of the world. I've seen FOB terms used in strictly domestic land transport on a BOL as there is still a point where "title" to the goods changes hands and who is responsible for paying for the different parts of a move (load, transport, unload). Depending on the situation and the particular move, the FOB point can have a significant impact if something goes amiss during the shipment. To go a little further down the FOB rabbit-hole....more recently, with the adoption of electronic bills of lading, etc., shipping point FOBs (FOB: Shipping Point) are more the norm with other "traditional" FOB points (dock, quay, alongside, etc.) are less and less common.

Hope that helps/adds.
 

MoneyDoc

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Hi there.

Thanks for offering such a quality thread.

I have a question. I have recently been contacted by a large retailer for this beverage I have exclusive rights to.

The value of the beverage will be in the low 5 figs for the trial order (that is my cost) including the shipment to a local port.The terms are FOB (location) so I would have to get a logistics company to truck it to the warehouse.
That shouldn't cost too much as its in the same city as the port.

I went on duty's calculator.com and calculated the additional costs.

I'm just wondering, is there any other cost I need to take into account?


Thanks.
 
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Rsimmons016

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Hey Guys!

I have been getting PM's and emails regarding what additional government agencies might be involved for which products. This is a very important question to ask. Below is a brief overview of the different government agencies and the general items they oversee.

Food and Drug Administration (FDA): Food, Drugs, Medical Devices, Radiation – Emitting Devices, Lasers, Vaccines, Blood and Biologicals, Animal & Veterinary, Cosmetics, Tobacco Products.
United Stated Department of Agriculture (USDA): Meat, Poultry, and Egg Products. Plants and Animals, Plant and Animal based products. Sugar, Dairy, Fruits and Vegetables
Federal Communications Commission (FCC): The FCC regulates marketing, sale and importation of radio frequency devices. I.e. Cell phones, computers, radios, Ipods, etc.
Department of Transportation (DOT): Any Vehicle that is intended to operate on public roads
Environmental Protection Agency (EPA): Motors/Engines
Consumer Product Safety Commission (CPSC): Children’s toys, Coffee makers, lawn mowers, Fireworks, and a wide variety of other products
Fish and Wildlife Services (FWS): Animals, seafood, and animal products. Exclusions are Domesticated animals (i.e. cows, pigs, chicken, etc.), shell fish for human consumption.
 

Rsimmons016

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Hi there.

Thanks for offering such a quality thread.

I have a question. I have recently been contacted by a large retailer for this beverage I have exclusive rights to.

The value of the beverage will be in the low 5 figs for the trial order (that is my cost) including the shipment to a local port. The terms are FOB (location) so I would have to get a logistics company to truck it to the warehouse.
That shouldn't cost too much as its in the same city as the port.

I went on duty's calculator.com and calculated the additional costs.

I'm just wondering, is there any other cost I need to take into account?


Thanks.

Hi MoneyDoc,

Send me the details of all your expected charges and I will be able to let you know what fees you are missing.
 

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