Why Businesses Should Entrust Customs Procedures to Brokers

business cargo passing through customsMany business operations involve importing goods from another country. As a universal rule, businesses need to secure a customs clearance for their products to enter a country legally. Failure to do so may result in the confiscation of items due to a possible smuggling case.

Businesses that do not have the human resources to see to the process of getting this clearance will have an easier time if they hire a customs broker. In the Philippines and in other countries, the customs department imposes strict regulations on imported goods, so it would be better to hire someone with knowledge and expertise in customs requirements and processes.

Brokers help in securing a customs clearance and assist businesses in other related procedures for clearing its requirements. They also know how to communicate with customs officials and other related agencies properly.

Let’s take a closer look at what brokers can do for your business:

Provide assistance with documentation

Brokers help in handling the documentation required by customs. They offer convenience as they manage the necessary paperwork. They make sure to obtain clearance that adheres to the regulatory requirements of the country of the recipient or consignee of the products.

Assist in the proper declaration of products

Brokers are knowledgeable in the proper procedure for the declaration of products. There are cases wherein incorrect declarations happen because businesses want to pay less. This can become a serious legal issue that will put any business at risk.

Brokers make sure products are declared correctly to avoid sanctions and penalties. Every item is categorized with an assigned classification number. These are placed into primary and minor groups for easier classification.

Apply expertise in regulatory requirements

The regulatory requirements of different countries can be complicated and confusing. Brokers help businesses understand these provisions and requirements in an easier and clearer way. Businesses can either ask for assistance in certain steps or entrust the entire process of securing a customs clearance to their chosen broker.

Ensure added costs are avoided

Customs regulations in different countries continuously change. As brokers are familiar with these changes, they can supply new information for their clients regarding the adjustments they need to do. Because businesses are notified, they avoid possible additional costs such as fines sanctioned by the customs department.

Brokers help businesses avoid added costs by notifying businesses of the necessary updates. It is better to follow the regulatory requirements — even if these may seem like a lot of work — than to skip these steps and end up facing a hefty penalty.