Nature of Services

All merchandise coming into the United States must clear through U.S. Customs and is subject to duties unless specifically exempted from duties by law. Clearance involves a number of steps: entry, inspection, appraisement, classification and liquidation.

A customhouse broker is a person who is licensed by the Department of Treasury to transact customs business on behalf of others. Customs business is defined as activities involving transactions with customs concerning the entry and admissibility of merchandise, its classification and valuation, the payment of duties, taxes or other charges assessed or collected by Customs on that merchandise by reason of its importation. Customs business also entails refunds, rebates and drawbacks thereof.

A customhouse broker is also responsible for implementing and upholding the applicable regulations on all related government agencies. Some of these agencies include: Food and Drug Administration, Fish and Wildlife, Department of Agriculture, Post Office, Bureau of Alcohol, Tobacco and Firearms, Federal Communications Commission, Public Health Service, Environmental Protection Agency, Consumer Product Safety Commission and the Department of Transportation.

Professional Qualifications

In order to become licensed by the Department of Treasury, a customhouse broker must successfully pass a written examination. This examination encompasses Customs and related trade laws, regulations and procedures. Sufficient knowledge of accounting, bookkeeping and all other appropriate skill areas also must be demonstrated.

In addition to successfully passing the written examination, a customhouse broker must also establish good moral character and business integrity by undergoing a thorough personal investigation. This process ensures that the licensed customhouse broker not only possesses the requisite knowledge necessary to render competent service to importers, but also adheres to strict ethical standards.

" This article originally appeared in the 1992 Illinois Guide to International Business Resources, Robert Schwartz & Associates, 1992. " by Cathy Slaski