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Freight Forwarder or Customs Broker - Which Is Right for You?

  • By Admin
  • 27 Mar, 2019
Shipping goods internationally takes your business to a whole new level of potential profit and visibility. But it also comes with new challenges and obstacles. Transportation of raw materials or finished products is one of those tasks that takes on a new complexity when crossing national borders.

Many companies are aware they need some kind of professional help with transporting things but aren't sure what kind of help is called for. Make your best decisions by learning about two useful types of international shipping assistance: freight forwarding and customs brokers.

What Is a Freight Forwarder?

Freight forwarding is a service that takes charge of your international shipment to get it from Point A to Point B.

These aren't freight carriers themselves but rather agents who will oversee the actual work. They are logistics experts who have already navigated the strange waters of international shipping rules and laws. They will prepare the paperwork needed to export or import goods, arrange for its safe transit on land or in the air, and get it to its new home.

Forwarding services also save money for your business. In addition to avoiding unnecessary fees and taxes, forwarders have established relationships with carriers. They can use these to get the best rate and timetable for your shipment.

What Is a Customs Broker?

Where freight forwarding concerns itself with the logistics of moving the actual goods between countries, customs brokers get those goods cleared for exit from and entry to those countries. In the United States, customs brokers must be licensed to work with the CBP (Customs and Border Patrol), so not everyone can offer this specialized service.

A customs broker will prepare a shipment for clearance before it arrives in the port of entry. They have experience in all matters of clearing items through the complex entry requirements, including classifying goods, calculating fees and taxes, filling out security paperwork, and coordinating customs checks.

They also generally act as a liaison between you as the importer and the United States government agencies that oversee everything from firearms to food safety to counterfeiting.

Which Do You Need?

While the services performed by forwarders and customs brokers overlap a bit, they both have a different focus. Which do you need for your shipments? The answer will vary. If you are importing to a foreign country, for example, you may have to work with a customs broker in that country. In this case, hiring a U.S. freight forwarder will ensure smooth operation on the exporting side.

A forwarding service is particularly useful if you're shipping goods that are potentially dangerous, unusually hard to pack safely, have a short shelf life, or have to travel in tricky areas of the world. In these cases, you need professional assistance to get everything there safely.
More often than not, utilizing both services are the best choice. As a new shipper, having experienced assistance is key to making a smooth transition as an international company. These early days are the most fragile and set the tone for your - and your customer's - whole experience in the global arena.

For most companies, hiring the assistance of both a logistics specialist and a customs broker is the right move. Ideally, look for a single company that provides both services. If you do uses separate entities, make sure they will work together successfully.

Are you ready to start preparing your shipments for international travel? At Dolphin Brokerage International, we have more than 30 years of experience navigating the international shipping world. Call today to learn what we can offer your business at this exciting time.
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