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Jennifer Baljko

Guide to Customs Brokers and Freight Forwarders

Shipping internationally? Customs brokers and freight forwarders can help

By Jennifer Baljko, Freelance Writer and Editor

If your business ships internationally, you'll quickly find that there's a long checklist of things to be done before your goods can get to where they're going.

To alleviate the stress of coordinating these logistics functions, you may want to work with customs brokers or freight forwarders. They can:

  1. Help prepare import and export documentation
  2. Facilitate the movement of goods through customs
  3. Reserve cargo space on various transportation modes and monitor shipments
  4. Deliver products to a warehouse or other destination chosen by the sender

Basically, customs brokers manage imports and inbound customs clearance, while freight forwarders oversee exports and arrange transportation for outbound shipments. However, as the industry becomes more competitive, logistics companies are adapting a one-stop-shop model and offering a variety of services.



Action Steps
The best contacts and resources to help you get it done


Understand the basics

Regardless of whether you engage more in exports or imports, you'll need to learn the lingo, decide how to best utilize third-party shipping providers and hammer out contracts.
I recommend: Global Trade & Logistics Services Inc. and the U.S. Government Export Portal have information about the role customs brokers and freight forwarders play. And, although this Inbound Logistics Magazine article addresses U.S.-Mexico trade issues, many of the tips are still valid and can be applied to other shipping scenarios.

Find a partner

While an online search of customs brokers and freight forwarders will yield hundreds of names, you can save time by scanning the membership directories of industry trade organizations.
I recommend: The National Customs Brokers & Forwarders Association of America, the International Federation of Customs Brokers Associations and the International Federation of Freight Forwarders Associations are good places to start.

Manage the relationship

Although you're hiring a third party to handle your shipping and customs requirements, you could be liable if your partner violates federal and international regulations. It's important to keep tabs on what they are doing.
I recommend: The Export Import Law Institute has an online course where you can learn how to manage these relationships.

Stay abreast of new rules and trade programs

In the wake of the September 11 terrorist attacks, new regulations have been adopted and various customs and border safety programs have been launched.
I recommend: The U.S. Customs and Border Protection site provides information about the Free and Secure Trade and the Customs-Trade Partnership Against Terrorism programs, and ask your shipping partners how they are complying with regulation changes. For updates, Logistics Management Magazine is one site to bookmark.

Tips & Tactics
Helpful advice for making the most of this Guide

  • The cost of freight forwarding services is a legitimate export cost that should be included in the price you charge to your customer.
  • Freight forwarders can help you prepare price quotes by advising on freight costs, port charges, consular fees, costs of special documentation, insurance costs and their own handling fees.
  • They can also recommend the best packing methods for protecting your goods during transit or can arrange to have the merchandise packed at the port or containerized.
  • If you prefer, freight forwarders can also reserve the necessary space on a vessel, aircraft, train or truck.

The official source of Customs Brokers and Freight Forwarders is
the Customs Brokers and Freight Forwarders page at Business.com

International Customs Freight Forwarding
Offers ATA Carnets for temporarily shipping merchandise and equipment through customs, duty-free and tax-free, for up to twelve months.
What is a Carnet? | FAQ | Info Kiosk | Carnet Countries
ATACarnet.com
Customs Brokers and Freight Forwarders
Low cost Commercial, Personal, Machine and Auto shipping Overseas. Free Air and Sea Estimates. Customs Clearance, Insurance, Packing, Licensed.
Free Air Estimate | Free Sea Estimate | Contact Us | Moving Tips
www.air7seas.com
International Freight Forwarding
Provides freight forwarding services worldwide with no size or weight restrictions. Specializes in hazardous and sensitive materials.
Request A Quote | Contact Us
www.nationalaircargo.com
Air Freight Forwarders
Request a quote for multi-model transportation. Get rate estimates for air freight, motor freight, dedicated truckload, & economy trucking.
Get a Quote | Contact Us
www.ballparkrates.com

Recommended Solution Providers

Forwarders.com: Freight Forwarding Directory
Directory of freight forwarding services.

FedEx: International Resource Center
International shipping solutions. Tools and resources.

UPS: Global Advisor
International shipping and supply chain solutions.

DHL: International Trade Center
Logistics network with links to international delivery services such as DHL Global Forwarding and Import Express.

NCBFAA Searchable Membership Directory
Directory of professional, licensed customs brokers and freight forwarders.

Export Yellow Pages: Freight Forwarder/Custom Broker
Directory linking exporters and service providers created by the U.S. Department of Commerce and Global Publishers.

Freightquote.com: Transportation Management
Web-based freight transportation management services for small businesses.

Freightnet.com: Freight Directory
Global directory of freight forwarders and freight services plus FreightTrak vehicle tracking system.

Best Sites to Learn More

SBA OIT: Breaking Into the Trade Game, A Small Business Guide to Exporting
Discusses the basics of transporting goods internationally including the role of the freight forwarder.

Export.gov: International Logistics
Documents and forms, FAQ, definitions and links for finding a freight forwarder.

U.S. Customs and Border Protection
Government services and regulations for exporting and importing.

About: Global Logistics
Articles, resources and links to companies with brokers, freight forwarders and expeditors.

Small Business Notes: International Trade
Information on importing and exporting including shipping and customs.

Federation of International Trade Association (FITA): Global Trade Portal
Features articles, guides, and directories.

Small Business Exporters Association: Resources
News, resources and member benefits.

Global Logistics and Supply Chain Management
Library of articles, case studies and expert reports.

NCBFAA: Information and Services
National Customs Brokers & Forwarders Association of America site with definitions and a searchable membership directory.

Best Blogs and Forums

The Small Business Community Forum: Import/Export
Discussion to support and assist small businesses.

Informed Trade International: US Import Export Resources General Forum
For importers and exporters seeking information and advice on international trade.

GlobeTrade: The Global Small Business Blog
Blog for entrepreneurs and small businesses interested in international trade.

Corante: Going Global
Focuses on expanding into new geographic and cultural markets, from globalization to international marketing to global usability.

Import Export Business Blog
Information and resources on how to start an import/export business.



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