In today’s world of globalization, the supply chain is easily becoming a source of competitive advantage for many firms. Prompt and on-time delivery of goods at the right place is the key to customer satisfaction. This has led to the rise of customs brokers, who facilitate the shipment in the process of custom clearance.
Although not a necessary part of freight-forwarding firms, custom brokers are fast becoming an essential part of the shipment process. Having a broker can provide you with certain advantages in international transportation.
The major advantage of having a broker is the convenience it provides to logistician. As the international shipping rules and regulations become stricter, custom clearance is becoming a hassle. The large amount of paperwork involved makes it difficult for companies to get their shipments cleared easily. A broker is licensed by the Custom and Border Protection agency and specializes in handling the paperwork accurately.
Often, they are required to go through rigorous trainings and certifications to get a license which means extensive costs for logisticians. Since these brokers operate on an international level, they can provide companies with much better results at cheaper prices.
A broker can also provide lower costs by bundling shipments of different clients together. They are affiliated with a number of cargo carriers and work together with them to reduce the prices for their clients. The client can conveniently track the position of its cargo by means of these brokers.
Custom legislations keep changing rapidly and it becomes difficult for freight companies to keep up with new policies all the time. Since it is their core competency, it is easier for brokers to keep track of these changes and facilitate its clients in the clearance process. In addition, these agents have connections in the industry which allows them to learn about these changes early on.
An extensive amount of paperwork is involved in custom processes including calculations of exchange rates, taxes, duties and excise taxes, and appraisal and classification of cargo. These papers have to be handled with caution since the lack of a single document can lead to delay of shipment by weeks. Custom brokers are experienced and competent in handling it efficiently.
Hence, having a broker can be convenient and cheap for logistics firms. Custom brokers often work as freelance agents or they might be affiliated with a freight-forwarding company. Many brokers also work for brokerage firms, shipping companies or importers and exporters.
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Article Source: https://EzineArticles.com/expert/Matthew_Aldis/1287810
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