AMA: Customs Brokerage/Freight Forwarding (International Logistics)

[Topaz]

Find someone in that space and go work for them for a bit and learn everything you can. Take whatever they are willing to pay you. If they aren't willing to pay, then be an apprentice. You aren't looking to make a living of off them, you are there for a "free" or "paid" education.

Ok. Thanks.

 

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[hz2g]

Hello, thanks for the AMA. What would you suggest is the best process to source products from China and then sell those within the US while not being in US or in China?

 

[HITO]

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

Hey Everyone,

I am new here. I found the forum through MJ's book. I have been checking the forum out for a couple of weeks and find that there is a lot of valuable information and resources here. I guess I would like to start out by trying to help the members who are interested in importing products into the USA.

A little bit about my background. I have been working in the freight forwarding industry for a little over 10 years. I am a Licensed U.S. Customs Broker and certified as a customs specialist.

I am also in the process of opening my own brokerage/forwarding company. Currently I am in the process of... Well waiting. It takes roughly a year to get all of the license's and permits from customs to open your own office. So while I am working with customs through the application process I am working on the back end structuring, and continuing to build my capital, etc.

So if there is anything that you would like to know about the logistics of having your products brought from overseas, customs clearance process, restrictions, regulations, and anything else that you can think of (related of course). just ask.

I will help the best that I can.

Hi Rsimmons,
I just passed April 2017 customs exam with no customs experience only 5 years logistics. I'm thinking of starting a customs service office as a sole proprietor. Can you give me some advice on starting own office? I probably should apply for license, permit and register company name or I should learn filing entry under a licensed broker for a year or two. I've heard a lot people say about how difficult FDA process is. Where should i start it

 

[Rsimmons016]

Hi Rsimmons,
I just passed April 2017 customs exam with no customs experience only 5 years logistics. I'm thinking of starting a customs service office as a sole proprietor. Can you give me some advice on starting own office? I probably should apply for license, permit and register company name or I should learn filing entry under a licensed broker for a year or two. I've heard a lot people say about how difficult FDA process is. Where should i start it

Hi Hito,
Go and get experience, after a couple of years you will know if you are ready to start you brokerage business.

 

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[VisionNN]

Hey there,

So i've hit a bit of a tough spot. Im in Canada and have my product here but i now need to ship it to the Amazon warehouse in the US. I originally thought i would use a small courier but turns out their limit is $800USD per day so that won't work. This leaves me with exporting as a commercial shipment and i am pretty confused with what i need now. I paid 1750 USD for my product not including the shipping cost to get it here.

1. I know i definitely need a customs broker involved but do i need a freight forwarder? I still get confused about the difference between a freight forwarder and UPS/FedEx.
2. I live about 2 hours from the border, am i able to bring it over the border myself and just have the customs broker take care of the paperwork or is there more to this?

Thanks for the help

 

[Rsimmons016]

Hey there,

So i've hit a bit of a tough spot. Im in Canada and have my product here but i now need to ship it to the Amazon warehouse in the US. I originally thought i would use a small courier but turns out their limit is $800USD per day so that won't work. This leaves me with exporting as a commercial shipment and i am pretty confused with what i need now. I paid 1750 USD for my product not including the shipping cost to get it here.

1. I know i definitely need a customs broker involved but do i need a freight forwarder? I still get confused about the difference between a freight forwarder and UPS/FedEx.
2. I live about 2 hours from the border, am i able to bring it over the border myself and just have the customs broker take care of the paperwork or is there more to this?

Thanks for the help

Hey VisionNN,

You won't need a freight forwarder from Canada to the U.S.. If the value of your cargo is under $2000 and not regulated by a Participating Government Agency then you won't need customs broker.

PM me and we can go over all the details

 

[OC Trading]

Hey VisionNN,

If the value of your cargo is under $2000 and not regulated by a Participating Government Agency then you won't need customs broker.

Hi Rsimmons,

I am in a similar situation where I am expecting a sea freight shipment of goods from China to the Port of Long Beach. I am assuming it would be an informal entry since the value of goods is approx. $1,200. Do I need to use a customs broker to help pay the duty fees and get my products released, and how would I go about getting them delivered by courier to my place of business? Obviously I'm trying to do this in the most cost effective way.

Thanks in advance!

P.S. I'm new to the forum and can't seem to send a PM.

 

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[Rsimmons016]

Hi Rsimmons,

I am in a similar situation where I am expecting a sea freight shipment of goods from China to the Port of Long Beach. I am assuming it would be an informal entry since the value of goods is approx. $1,200. Do I need to use a customs broker to help pay the duty fees and get my products released, and how would I go about getting them delivered by courier to my place of business? Obviously I'm trying to do this in the most cost effective way.

Thanks in advance!

P.S. I'm new to the forum and can't seem to send a PM.

Hello OC Trading,

Welcome to the forum. At $1,200 you can go down to customs with your paperwork and get it released yourself (assuming your cargo is not regulated by any other agency).

I'll send you a pm so we can discuss in more detail about your products

 

[Dwayne Richards]

I sent a package through Fedex to Colombia to a friend who lost her cellphone and its currently at the airport in Bogota needing to clear customs because i didn't realize you needed someone to clear phones in colombia and i am wondering if someone knows a company that can do that for me. I have exhausted all options and really need help on this.

 

[Rsimmons016]

I sent a package through Fedex to Colombia to a friend who lost her cellphone and its currently at the airport in Bogota needing to clear customs because i didn't realize you needed someone to clear phones in colombia and i am wondering if someone knows a company that can do that for me. I have exhausted all options and really need help on this.

Hey Dwayne,

A quick google search turned up below customs brokers in Bogota

 

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[automatelabs]

Hey Everyone,

I am new here. I found the forum through MJ's book. I have been checking the forum out for a couple of weeks and find that there is a lot of valuable information and resources here. I guess I would like to start out by trying to help the members who are interested in importing products into the USA.

A little bit about my background. I have been working in the freight forwarding industry for a little over 10 years. I am a Licensed U.S. Customs Broker and certified as a customs specialist.

I am also in the process of opening my own brokerage/forwarding company. Currently I am in the process of... Well waiting. It takes roughly a year to get all of the license's and permits from customs to open your own office. So while I am working with customs through the application process I am working on the back end structuring, and continuing to build my capital, etc.

So if there is anything that you would like to know about the logistics of having your products brought from overseas, customs clearance process, restrictions, regulations, and anything else that you can think of (related of course). just ask.

I will help the best that I can.

Thanks for sharing about your experience. I have also worked with freight forwarding companies and one thing I find that they struggle with is finding a freight management system that is efficient. In order to find one that best suits your company’s needs, it highly depends on the operational intensity (number of jobs/bookings you manage) and operational complexity (multi-modal, break bulk etc.) If you are a freight forwarder that is just starting out, microsoft excel will work just fine and you don’t need (or don’t have to think about) any software at all. However, once your operation grows and you have at least 500 jobs/bookings on yearly basis, you need to consider getting a freight management system simply because your operations has outlived the basic capabilities of Microsoft excel. Some of the essential features include:

• Cloud-based (so you can access it wherever you go)
• Web-based/Platform-agnostic (so you can access via browser in any operating system of your PC, tablet or mobile-phone)
• Real-time (so that all information is updated with zero lag time)
• Comprehensive functionalities (Quotations, Invoices, DOs, PUs, Arrival Notice HAWB, HBL etc.)

The most difficult and highly debatable point is on how comprehensive any freight management system can be. Most of the freight software solutions in the market are designed with mass-market needs in mind which means they come pre-built with generic functionalities.

Bearing that in mind, your business may have its own way of managing your freight forwarding operations, custom document templates etc and this is the functional gap you face when you are comparing various off-the-shelf solutions.

The software solutions should map to your freight forwarding operational requirements; not the other way around. When you start to write down exactly what you need and search for it, you will either have a difficult time finding a solution that checks all the boxes OR you will start to compromise certain needs. Thing is, you don’t know which features you can compromise since most freight management systems require certain features for them to be rendered useful and contribute to a boost in productivity/efficiency. This is why you need a customizable freight management system software solution. The customizable aspect is very important as the ability for you to modify the system according to your own requirements rapidly cuts down the development time and allows you to build it on your terms. Hope this helps!