What is the role of a Customs Broker in India?

In the global business world, we always hear the term "customs broker", but how much do we know about custom brokers? "Who is a customs broker?" Many questions will be asked by such inexperienced importers. And what do they say? "Customs brokers regulate private for-profit individuals, corporations or organizations and help importers meet global trade-driven federal requirements. Customs brokers will be licensed under the regulations of 2018. Like freight forwarders for international shipping, customs brokers trade plays an important role in the supply chain.

1    1 Inward and outward processing of carriages

The entry of foreign manufactured goods represents billions of dollars in duty collection by customs and is prepared by customs brokers on behalf of almost all importers. There are brokers that act as sole proprietors at one entry port, while there may be large corporations with branches at various other entry ports. However, customs brokers are licensed and regulated by all Treasury departments, regardless of the size of the company.

For starters, filing entry is more complicated than it seems. Importers do not need to hire a broker to enter their goods, but more often than not, small import companies are inexperienced and have very limited knowledge of import regulations. Therefore, they should appoint a third-party broker as their representative for dealing with regulatory matters.

2    2  Import and export of goods

Customs brokers are not only knowledgeable of customs regulations, but there are also many experienced brokers in the market who have the skills to file products requiring other government agencies (OGAs) to file. Of course, each OGA has its own rules, requirements and operating procedures that are different from other agencies.

On the other hand, most large retailers and wholesale importers should appoint a group of in-house, licensed brokers to handle all their custom transactions; Regulatory consultation, filing of admission, required bond acquisition, submission of import duty and introduction of its products. At some point, the importer's time will become more valuable to them for marketing their product than dealing with the key aspects of their company's management and entry.

3    3 Customs stations

Customs brokers can act as advisors to importers to analyse rather than import products that can be entered under any preferred tariff treatment. One of the most well-known free trade examples, for example, is NAFTA (North America Free Trade Agreement) designed for products originating from Canada and Mexico. The GSP (Generalized System of Preference) is another commonly known free trade agreement designed to promote economic growth in developing countries. Each free trade agreement has a different origin and import requirements, which are subject to U.S. May apply to products imported into. Must be eligible for Commerce Duty-Free Entry

Customs broker course might help

Every year, there are more than 1000 individuals in the country who take the broker license exam and even then the pass rate is only five to 10 per cent. Customs has high requirements for those who want to become brokers because it is a bridge between the customs and the business community.