In the last decade or more, we have ultimately witnessed the growing impact of globalization on how companies conduct their businesses. For all intents and purposes the same holds true in the freighting and logistics business. Crucially, many freight forwarders rely on partnerships they’ve developed with other companies in a bid to provide Customs Brokerage.
Because of the complication involved with importing and exporting goods, many companies use Customs Brokers to act as their agents. Customs Brokers predominantly clear shipments of imported goods, prepare required documentation for export shipments and collect duties and taxes. They act as an intermediary between importers and the government, helping companies deal with legislation. Customs Brokers are the primary source of knowledge and skills that help importers develop appropriate systems and procedures in reporting trade data.
Customs Brokers charge a brokerage fee, which is usually determined as a percentage of the value of the imported shipment. A set rate or fee can be negotiated by the importer and the customs broker based on complexity of customs entries, frequency of customs entries and noted value of imported goods. Undoubtedly, Customs Brokers are better positioned to assist an importer in a number of complicated areas, such as tariff classification, customs valuation, appeals and dispute settlements, refunds, drawbacks and remission of duties, sales and excise tax implications, payment of taxes and duties, seizure appeals, reviews of past customs accounting documents (entries), and anti-dumping and countervailing issues.
As a result, choosing a Freight Forwarder or Customs Broker based on price might not be the best strategy long-term. Creating a bidding war between two companies seems like a smart tactic, however one may end up with a quote that is far more optimistic than it is realistic. The shipping industry hinges on fixed costs and strategic margins. It’s rare to encounter a significant cost difference between two companies who are being honest about their pricing. There’s a lot of potential for additional fees when you don’t carefully review your quote. If you ask the right questions, you should be able to see through any unduly favourable pricing.
Recommendations on the apt Customs Broker to choose for all your importing activities is crucial to the overall success of your business. That is why FIRST STEP LOGISTICS is your preferred logistics and freighting SOLUTION CENTER. REACH OUT TO US TODAY!