Customs Brokers

Why formal entry now applies to far more shipments, and what to look for in a licensed broker.

A customs broker is licensed by US Customs and Border Protection (CBP) to prepare and submit the documentation needed to clear imported goods through customs, calculate and remit duties, and represent importers in dealings with CBP. Since the elimination of de minimis treatment for China-origin goods in 2025, formal entry — and therefore a broker — is now required for many shipments that used to clear informally.

What a broker actually does

• Classifies your goods under the correct HTS code, which determines the duty rate you actually owe.
• Calculates and files duty payments, including the stacked Section 301 / Section 122 / Section 232 amounts covered on the tariff rates page.
• Files entry documentation electronically through CBP's Automated Commercial Environment (ACE) system.
• Flags compliance issues before they become penalties — incorrect classification, missing documentation, or goods requiring other agency approval (FDA, CPSC, FCC, depending on category).

What to look for

• Active CBP license — verifiable directly; a broker's license number should be something they provide without hesitation.
• Experience with your HTS categories — a broker who regularly handles your product type will classify it correctly and flag category-specific requirements you might not know to ask about.
• ACE-enabled electronic filing — standard for any broker doing meaningful volume; if they're not filing electronically, that's a red flag on its own.
• Bond arrangements — understand whether you need your own continuous customs bond or will operate under the broker's, and what that means for your liability.

Typical cost structure

Brokers generally charge a per-entry fee (commonly in the range of $75–$200 per formal entry, though this varies with complexity and volume), separate from the actual duties owed to CBP. High-volume importers sometimes negotiate a retainer or reduced per-entry rate.