How Is A Customs Broker Different From A Freight Forwarder

How Is A Customs Broker Different From A Freight Forwarder In the contemporary world, business owners (importers and exporters), especially startups, take customs brokers and freight forwarders as the two names for a single thing. They do this, as they have no sound knowledge about these terms or are not aware of the truth that these two are different things.

As a conscious exporter/importer, you shouldn’t get confused with these two terms.

Before you take your step ahead for collaborating with a freight forwarder or a customs broker in a city like San Diego, you should brush up your knowledge.

The write-up is beneficial for you in this regard. Keep reading it from the beginning to the end.

What’s a customs broker?

A customs broker is an individual, association, partnership, or a corporation that holds a license to support exporters and importers to get their goods cleared from an associated customs authority and accelerate their products in transit at the international level.

By acting as an intermediary between businesses and the respective government, such a licensed professional or agent does document preparation, product categorization, and payment to stakeholders on the behalf of their clients. They have a sound idea of the rules and regulations applied to international product shipping. Further, they keep themselves updated with what is going on and what would take place in the near future.

What’s a freight forwarder?

A freight forwarder is an expert, who is associated with the supply chain and focuses on logistics and the physical transit of goods from one place to another.

These professionals associate themselves with exporters/importers that ship or demand goods via roads, railroads, seas, and air, or a combination of all these four.

They are responsible for compliance filing, documentation, product categorization, and allied works in export or import businesses.

In simple words, you can say a travel agent for cargo to a freight forwarder who works as a third party and plans the shipment of goods and facilitate a business owner in the entire process of their product transit, from the source to the destination.

What are the differences?

After comparing the works of a customs broker and a freight forwarder, you can easily comprehend that these are two different terms. Here are some significant differences for your assistance:  A customs broker is a particular term in logistics requirements while a freight forwarder is an extensive term and covers almost all the associated jobs in product supply chain at domestic or international level.  A customs broker can’t be a freight forwarder whereas a freight forwarder can be a customs broker.  The professionals engaged in customs clearance are a foreign agent for import/export businesses while the freight forwarders usually take care of the entire process of product transit in an import/export business.  The professionals as a customs broker or freight forwarder can work together to smooth your product shipment, especially at the international level.

Summary A customs broker is different from a freight forwarder. Both of them are crucial for you if you are running an import/export business. Be very careful in the selection of such an agent or business entity to keep your business operation smooth.