Customs Broker (Customs Glossary)

This article is part of the Customs Glossary Guide

A Customs Broker is a licensed professional or company that helps importers and exporters meet customs requirements for cross-border trade. Customs brokers prepare and submit customs documentation, assist with tariff classification and duty calculation, and coordinate with customs authorities so goods can be released for import or export.

Overview

Customs brokers act as intermediaries between importers, exporters, carriers, and customs authorities. Their role is to help ensure that goods are reported accurately and that the required commercial entry or release information is submitted to customs.

In cross-border freight, the customs broker is usually responsible for the commercial customs clearance. The carrier is usually responsible for transporting the goods and submitting the highway manifest or cargo report, such as an ACE Manifest for the United States or an ACI eManifest for Canada.

Common Broker Services

Customs brokers commonly assist with:

Preparing and filing customs declarations.
Reviewing commercial invoices, bills of lading, and other shipment documents.
Classifying goods for tariff purposes.
Calculating duties, taxes, and fees.
Coordinating with customs authorities and other government departments when required.
Advising on trade programs, documentation requirements, and release procedures.
Helping importers respond to customs questions, holds, or document requests.

Carrier vs. Broker

In highway border crossings, the carrier and customs broker have different responsibilities.

Party	Main responsibility
Carrier	Transports the goods and reports the conveyance, crew, equipment, and cargo to customs, such as through ACE or ACI.
Customs Broker	Handles the commercial customs entry or release process for the importer or exporter.

For PARS and PAPS shipments, the carrier should verify that the broker's release or entry information is on file before the driver arrives at the border. A completed manifest does not necessarily mean the broker entry or release is complete.

When Brokers Are Used

Importing goods: A company importing goods may use a customs broker to prepare import documentation, confirm the applicable customs process, classify the goods, and help ensure the shipment can be released by customs.

Exporting goods: A company exporting goods may use a customs broker or trade specialist to review export documentation and help meet the destination country's import requirements.

Duty and tariff planning: A customs broker may help review tariff classification, origin, valuation, and trade agreement documentation so the importer understands the duties and taxes that may apply.

Specialized goods: Goods subject to permits, licences, certificates, or other government department requirements may require additional documentation. A customs broker can help identify what may be needed for release.

Cross-border ecommerce: Ecommerce sellers may use a customs broker to manage customs declarations, duties, taxes, and release processes for goods moving to customers in another country.

BorderConnect Usage

BorderConnect helps carriers coordinate with customs brokers during cross-border workflows. Broker and shipment information can be entered on shipment records so dispatchers can track the release process and keep documents connected to the correct trip.

For Canadian shipments, BorderConnect's PARS Checking software can help carriers verify whether PARS release information is on file. For U.S. shipments, ACE manifest status messages can help confirm whether broker entry numbers have been received for PAPS or QP In-Bond shipments.

Carriers should confirm broker clearance before sending the driver to the border. This is especially important for PARS and PAPS shipments, where both the carrier's manifest and the broker's release or entry information may be required before arrival.

Best Practices

Send shipment documents to the customs broker as early as possible. Commercial invoices, bills of lading, packing lists, and permit documents may be needed before the broker can complete the release.

Confirm the broker has the correct shipment control number, such as a PARS or PAPS number. Incorrect control numbers can prevent the broker's release from matching the carrier's manifest.

Do not rely only on verbal confirmation that a shipment is cleared. Use BorderConnect status tools, broker websites, or direct broker confirmation to verify that the release or entry is on file before the driver arrives.

Official resources