United States Customhouse Broker
Questions & Answers
What is a Customhouse Broker? Answer: A Customhouse Broker, otherwise known as a Customs Broker acts as an agent for Importers and Exporters of merchandise. Oftentimes a Customs broker will issue bonds on behalf of a surety for the client's payment of duties, file Customs paperwork associated with the importation of merchandise, arrange freight service, and represent clients in disputes with the Customs Service. Can anyone act as a Customhouse Broker? Answer: No, a Customs brokerage is regulated by the United States Customs Service. Customs brokers are required to be licensed. 19 CFR § 111.0 et. seq. A Customs broker is also required maintain a permit issued by the District Director of the District where he or she performs transacts customs business. 19 CFR § 111.19. How do Customs Brokers make their living? Answer: Customs brokers charge fees for the preparation of entry documentation. The broker may sell his customer a bond to secure the compliance with the Customs laws. A broker who arranges for freight services may also charge a markup on the value of the freight services. Customs brokers typically charge for their consulting services. How does my company retain Scott McMillan as its Customs broker? Answer: The client executes a power of attorney. If the client is a corporation, a corporate resolution is required. The power of attorney appoints Scott McMillan as a lawful agent with the power to bind the client and sign documents on behalf of the client. The client is also required to sign Scott McMillan's Service and Security Agreement,
which establishes the business relationship and limits the broker's liability.