CB1u—Intro to U.S. Customs Brokerage: Part 1, The Players, Functions and Business of a Customs Broker
Subscriber price: $194.00, Non-subscriber price: $255.00
Estimated total study time: 14 hours 27 minutes
This the first of the nine-part series of introductory courses in the practical work of U.S. customs brokerage work groups. Each is designed to help "jump start" a new trainee or facilitate the transition of a person with related experience, such as freight forwarding, to the tasks performed by brokers.
This training is about what customs brokers actually do—their operational functions and the business of customs brokerage. It serves as a foundation for a wide range of subsequent, more in-depth training based on particular job assignment.
If you are new to the business of customs brokerage or acting as an importer, these courses will accelerate your understanding of responsibilities, regulatory environment and operational work flow of importing goods into the U.S. For those of you who already have some experience, these courses will fill in gaps in your operational knowledge, as well as add "big picture" understanding of import requirements.
Note: Although the operational particulars in which customs brokerage takes place varies with the transportation mode, these initial courses are applicable to all operational environments.
Introduction to the CBP; Overview of the U.S. Import Process
This lesson looks back to the beginning of U.S. customs brokerage with a look at the history, current mission and organization of the U.S. Bureau of Customs and Border Protection. We also introduce the U.S. import process with an overview of key players and additional parties that are sometimes involved.
(Estimated study time: 1 hour 22 minutes)
- Introduction
- Introduction to the U.S. Import Process and Parties
- The Big Picture
- Four Essential Parties
- Additional Supporting Parties
- Overview of U.S. Import Process by Transportation Mode
- Imports by Ocean Vessel
- Imports by Rail and Truck
- Imports by Air Freight
- U.S. Bureau of Customs and Border Protection (CBP)
- A Brief History of U.S. Customs
- A Single Law Enforcement "Face" at the Border
- The CBP Mission
Introduction to Importers and Customs Brokers
In this lesson we consider why foreign goods are imported, and by whom, and begin our examination of services provided by a customs broker.
(Estimated study time: 1 hour 15 minutes)
- Introduction
- Importers
- The Customs Broker's Customer
- The U.S. & Global Trade
- Who Are Importers?
- Qualifications to Be an Importer
- Legal Responsibilities of an Importer
- Restrictions on Who May Act as a U.S. Importer
- Customs Brokers
- History of the Customs Broker Profession
- Current Regulation of U.S. Customs Brokers
- An Importer's Perspective of Customs Brokers
- Why Do Importers Hire Customs Brokers?
"Admissible" and Prohibited Imports
In this lesson we begin examining restrictions on what may be imported into the U.S.
(Estimated study time: 57 minutes)
- Introduction
- Customs Admissibility — Not To Be Assumed
- General — "Admissibility"
- Prohibited Goods
- Prohibited by Embargo
- Items Detained from Arriving Travelers
- Reasons for CBP Detention of Items by Arriving Travelers
- Broker Concerns when Clearing Goods Carried by Travelers
U.S. Imports Subject to Processing by U.S. Agencies in Addition to CBP
This lesson addresses U.S. import restrictions and other U.S. Government agency processing requirements that affect some types of goods at the time of customs entry.
(Estimated study time: 1 hour 37 minutes)
- Introduction
- Customs Brokers Must be Aware of Government Agency Controls and Processing Requirements
- Arms, Ammunition and Explosives, Military Items
- Nuclear Reactors, Parts Thereof, and Nuclear Reactor Fuel
- Endangered Species
- Controlled Substances
- Agricultural Commodities
- Cargo that May Harbor Insects and Disease
- Containers, trucks and packing material that May Harbor Insects and Disease
- Inspection of Containers and Trucks
- Inspection of Wood & Wood Packing Materials
- Fruit and Vegetables that May Harbor Insects and Disease
- Plants and Soil that May Harbor Insects and Disease
- Dangerous Goods (Hazardous Materials)
- Hazardous Waste, Environmental Pollutants, Insecticides, Pesticides
- Pathogens of Interest to Terrorists
- Pharmaceuticals, Diagnostic Equipment, Medical Devices, Eyewear, Cosmetics and Food Service Items
- Electronic Devices
- FDA Radiation Control of Electronic Devices
- FCC Radio Frequency Interference
- Fresh and Minimally Processed Agricultural Products
- Processed Human Food Products and Ingredients
- Animal Feed and Ingredients
- Consumer Products (Safety Requirements)
- Consumer Products (Truth-in-labeling and Advertising)
- Motor Vehicles and Parts; Powered Watercraft
- Alcoholic Beverages, Other Taxable Alcohol
- Products Subject to State Laws
- Additional Information
The Relationship Between Importers and Customs Brokers
This lesson begins our coverage of services which customs brokers provide by addressing the relationship between the broker and his customer, the importer, with respect to "customs business" vs. other types of services.
(Estimated study time: 35 minutes)
- Introduction
- Agency vs. Purely Contractual Services
- Avoiding Conflicts of Interest between the Broker and Importer
- Written Terms and Conditions of Service
- Broker-Importer Relationship
Broker "Customs Business" Type Services and Fees (Typical)
This lesson introduces the range of "customs business" type services a broker provides as reflected in fees and charges made to the importer.
(Estimated study time: 1 hour 11 minutes)
- Introduction
- Broker Fees and Charges to an Importer
- General — Resources and Services Brokers Provide
- "Customs Business" Services & Fees
- General — Services & Fees for "Customs Business"
- Customs Broker Charges Invoiced to an Importer
- Typical Broker Fees for "Customs Business" Services
- Disbursements On Behalf of an Importer
- Premium and Fee for Arranging a Customs Bond
The Customs Broker's Involvement in the Cargo Transportation Process
In this lesson we address transportation-related responsibilities and services a broker must provide to assure timely customs clearance and delivery/on-carriage of the goods once cleared.
(Estimated study time: 1 hour 1 minute)
- Introduction
- Import Shipment Arrival Notice
- Broker Transaction Initiation
- Coordination by Customs Broker with Importing Carrier on Behalf of Importer
- Providing Authorization to Represent the Importer
- Requirement for a "Carrier's Certificate"
- Requirement for a Carrier's Release Order
- Payment of Destination Freight, Terminal and other Charges
- Arranging Delivery or On-Carriage ("Reforwarding" Cleared Goods)
- Arranging Cargo Insurance
Advancing Funds on Behalf of the Importer; Credit Controls
A customs broker often becomes involved in advancing funds to pay incoming freight charges, and perhaps customs duty and delivery charges. This lesson addresses why this is done, and controls a broker should exercise to avoid potentially serious financial loss.
(Estimated study time: 59 minutes)
- Introduction
- Advancing Funds; Concerns and Fees for this Service
- Incoterms; Who is Responsible to Pay for Transportation and Other Costs?
- Why Does a Customs Broker Advance Funds for an Importer?
- Client Credit Control Process
- Broker's Obligation to Pay Charges
- Fee for Disbursing Funds
Customs Brokerage—Part of Supply Chain Logistics
This lesson addresses the function of a customs broker in the larger context of supply chain management, together with what a customs broker can do to strengthen this role by providing additional logistical services.
(Estimated study time: 47 minutes)
- Introduction
- Customs Brokerage as Part of Supply Chain Logistics
- Customs Brokers as Part of Integrated Logistics
- Importer's Need for Multiple Logistics Services
- Industry Need for Diverse Expertise and Global Reach
- Internally Provided Services
- External Service Networks
- Leveraging and Extending Service
- Acting as Lead Agent
- Structures of Agent Networks
Services Beyond Traditional Customs Brokerage
Today most companies that provide customs brokerage also are engaged in freight forwarding and other types of logistics services. This lesson addresses the relationships within an organization between these different types of business activities.
(Estimated study time: 54 minutes)
- Introduction
- Customs Broker Involvement in Inbound Cargo Transportation
- Customs Clearance Included in Single-Provider Through Transportation
- Inbound Traffic and Breakbulk Services
- Customs Broker Acting as a Breakbulk Agent for an NVOCC
- Freight Forwarding Services
- Customs Broker Involvement in Distribution and Domestic Logistics (3PL) Services
- Consulting
The Customs Broker-Importer Relationship; Client Satisfaction & Communication
This lesson covers the operational relationship that a customs broker must develop and maintain with his client, the importer.
(Estimated study time: 1 hour 6 minutes)
- Introduction
- The Customs Broker — An Expert Middleman
- Client Satisfaction Success Factors
- Client Satisfaction through Performance Standards and Good Practices
- Every Shipment and Communication Counts — Do Things "R.I.G.H.T."
- Business Communication Do's and Don'ts
- Communication Timeliness
- Communication Methods
- Formality in Communication and Appearance
Irate Customers & Other Communication Concerns
This lesson address the basics of dealing with irate and abusive customers and others on the telephone, identifying what can be done during telephone calls to please vs. displease customers. Properly handling complaint calls, especially when the customer or other party is irate and accusing or attacking is a challenge. This lesson is intended to help prepare brokerage staff to respond constructively to these calls.
(Estimated study time: 46 minutes)
- Introduction
- Irate Customers & Other Communication Challenges
- Be Prepared
- Foul Language
- Accusatory Calls/Language — Focus on the Underlying Problem
- Your Initial Response
- After You Understand the Complaint
- Do's & Don'ts with Irate or Accusatory Customers
Confidentiality of Importer's Information; Broker Relationships with the CBP and Other U.S. Agencies
In this lesson, we address how a broker's staff should interact with CBP and other government agencies and explain key differences between brokers' relationships with government entities and other business relationships, including the conflict between a broker's obligation to maintain importers' information in confidence and a broker's obligation to maintain records and provide them to CBP upon request.
(Estimated study time: 57 minutes)
- Introduction
- Confidentiality of Client Information
- A Customs Broker's Relationship with CBP (Customs)
- A Formal Relationship with CBP
- Practical Guidelines for Interacting with CBP Officers and Staff
- Unusual CBP Requests and BICE Agents
- Record-Keeping for Broker Transaction Communication
- Customs Broker Relationships with Other U.S. Government Agencies
A Customs Broker's Relationships with Transportation Carriers & Other Service Providers
This lesson addresses the operational relationships a broker must pursue with carriers and other service providers on behalf of its client importers.
(Estimated study time: 59 minutes)
- Introduction
- Arriving International Cargo Requires a Customs Procedure
- Routine Interaction with Transportation Carriers
- Non-Routine Interaction with Carriers — Problem Solving
- Relationships with Other Types of Service Providers