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

Look at the customs brokers and freight forwarders' affiliations

Seek out the most current news and information from customs brokers and freight forwarders industry groups and affiliations. Consider membership and take advantage of their many resources.

I recommend: Check out publications from the National Customs Brokers & Forwarders Association of America. Take a look at their news and educational information, and find out about joining the organization. Fédération Internationale des Associations de Transitaires et Assimilés, in English "International Federation of Freight Forwarders Associations" (FIATA) is another organization that offers potential membership and publications.

Check out the latest new on the customs brokers' exam

Stay abreast of the most current facts and information regarding the customs brokers' examination and licensing courses. Information about dangerous goods entering the United States is routinely changing, so keeping current on what to look for is imperative.

I recommend: The American Customs Association offers customs broker license news and information. Look into their license exam courses and continuing education courses. Logistics Training Systems is another training organization that can help you learn the most up-to-date information for your examination.

Take a look at the publications from the customs brokers' industry

Find the most up-to-date customs brokers and freight forwarders news and information from industry trade publications.

I recommend: Subscribe to Air Cargo World Magazine and check out their online content. SupplyChainBrain.com can also offer you up-to-date freight forwarding solution news and information.

Helpful advice for making the most of this Guide

• •  When you join one of the customs brokers and freight forwarders' affiliations, take advantage of the workshops, seminars and continuing education opportunities.

Guide to Customs Brokers and Freight Forwarders

Shipping internationally? Customs brokers and freight forwarders can help

By Jennifer Baljko, Freelance Writer and Editor

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.

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.

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

Start with the government for customs brokers and freight forwarders basics

Since the federal government oversees the safety and the taxing of the merchandise that comes into and out of the United States, they play a major role in who is eligible to become one of the customs brokers and freight forwarders that help bring goods into the country. Use Federal resources to help better understand transportation intermediaries and how they can assist you.

I recommend: Find out from the U.S. Department of Homeland Security what a customs broker does and how you become qualified to become a customs broker. It also gives detailed information on the customs broker exam. Find out about freight forwarders from Export.gov. Find out why you should use a freight forwarder, and how you can find a freight forwarder.

Check out how the major freight forwarding companies do it

Take a look at the services offered by the major transporter forwarders in the U.S. Use their services as a basis for comparison when looking at other service providers.

I recommend: Look at services offered by major freight forwarding solution FedEx. As an experienced customs broker, you can use their experience as a basis comparison to look at other providers. UPS also offers their Supply Chain Solutions to your business.

Use resources provided by customs brokers and freight forwarders

Take advantage of the many tips and information shared by freight forwarding companies and brokers. Use their knowledge and skills to your benefit as they post it as part of their marketing strategy.

I recommend: Go Global Logistics offers a wide variety of U.S. Customs clearance and brokerage information. They can help you with trade requirements and tariff regulations. The Cargo Letter also has a wide range of resources.

Helpful advice for making the most of this Guide

• •  When choosing a freight forwarding company, ask for a list of contact references. Don't be afraid to call everyone on the list to discuss satisfaction in the areas of pricing, customer service and professionalism.

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

IFCBA

IFCBA is the International Federation of Customs Brokers Association, a group of professionals that are skilled in how your import and export goods need to be classified as well how to keep them moving smoothly.

I recommend: Find out more about customs brokers from the International Federation of Customs Brokers Association.

Bill of lading, BOL, B/L

A bill of lading, otherwise known as BOL or B/L, is a document written up by the carrier to the shipper specifying what goods have been received as cargo on board the vessel for shipment as well as the person and place they are going to.

I recommend: Find out about bills of lading as a shipping document from VICS.

Export broker

Export brokers identify foreign resources to help you establish your overseas contacts. They connect buyers and sellers and provide information on dealing with the import/export rules and laws of foreign countries.

I recommend: See how the Southern United States Trade Association defines explains export brokers.

Third-party shipping, third-party logistics, 3PL

Third-party shipping/logistics providers (3PL) provide outsourced logistics services to businesses for part or all of their supply chain management.

I recommend: Find out about third-party logistics from Go Global Logistics.

Port charges

Port charges can include (but are not limited to) assessments of taxes, damages, dockage, wharfage and other fees at the port you are exporting or importing from.

I recommend: Look at the Australian Port Charges (AUD) listed from Five Star Shipping as an example of port charges you might encounter abroad.

Less Than Container Load (LCL)

Less Than Container Load (LCL) allows you to ship at the same frequency, routes and visibility of full container loads, but you only have to fill up a portion of the space as opposed to the whole container. The cost is then split among all the shippers.

I recommend: Learn about Less Than Container Load (LCL) in conjunction with customs brokerage from UPS.