The Future of Customs Brokers

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Welcome to the Customs Knowledge Institute's first monthly Podcast, the Episode 1! We start with a lively discussion about the changing role of customs brokers.

The most basic function of a Customs Broker is to lodge customs declarations on behalf of clients.  Most trading businesses however rely on their Broker for much more - advice, record keeping, dealing with compliance issues, and interfacing with Customs authorities. The complexity of Customs and of business has encouraged specialisation and fragmentation of the "Customs representative", as the Broker is known in the UCC. We see specialist brokers who offer the fullest representation, but also situations where brokerage is an add-on to other business such as transport, accountancy or consultancy.  So it is hard to give one description that fits all Customs Brokers.

There is now a growing debate in the EU, the UK and the USA about the management and development of Customs representatives. Some would say that the EU Customs Reform Proposals threaten the very existence of the broker, and there is a strong campaign to restrict access to the role. The debate is partly driven by a perception that the broker can in some ways hide the trader from the view of the Customs authority, without having to take any responsibility for improper action or non-compliance.

Participants 

The participants in the discussion: Anthony Buckley (Chair of CKI, Ireland), Kevin Shakespeare (Director of Strategic Projects and International Development at the Institute of Export & International Trade, the UK), Dr Momchil Antov (Chairman of the Board of the National Organization of Customs Agents, Bulgaria) and Enrika Naujoke (director of Lithuanian Customs Practitioners Association).

Discussion

Participants discussed some of the fundamental issues such as:

  • What is wrong with the present system?
  • Is the Broker under real threat?
  • Does it make sense to have one definition of "Customs Representative" or should there be different categories?
  • Should there be a licensing system? Covering which activities?

Would you like to participate in such discussions? Join Customs Knowledge Community (CKC)!

Resources are available after purchase.

Comments ()

Topic spotlight
icon
How to build relationship with a customs broker: Step-by-step instructions from a customs official
10-03-2024

Finding the right customs broker can be a huge problem for traders. One may seem to be "your" person, but they may misunderstand you or not listen to you. Another may not have the proper level of knowledge and so on. This article is designed to help you with this search and selection process. You will find answers to the most important questions to ask when looking for a helpful broker.

Rizwan Mahmood

customs brokers
Topic spotlight
icon
How to build relationship with a customs broker: Step-by-step instructions from a customs official
10-03-2024

Finding the right customs broker can be a huge problem for traders. One may seem to be "your" person, but they may misunderstand you or not listen to you. Another may not have the proper level of knowledge and so on. This article is designed to help you with this search and selection process. You will find answers to the most important questions to ask when looking for a helpful broker.

Rizwan Mahmood

customs brokers
Country update
icon
The future of customs intermediaries in the UK - overview
28-01-2024

Recognising the critical role that customs intermediaries play in enabling international trade for UK businesses, the government issued a consultation that sought feedback on the concept of introducing a voluntary standard. The final phase of the consultation process concluded in August 2023. A significant consensus emerged among stakeholders on the idea of introducing a voluntary standard for customs intermediaries.

Ilona Kawka

customs brokers
Country update
icon
The future of customs intermediaries in the UK - overview
28-01-2024

Recognising the critical role that customs intermediaries play in enabling international trade for UK businesses, the government issued a consultation that sought feedback on the concept of introducing a voluntary standard. The final phase of the consultation process concluded in August 2023. A significant consensus emerged among stakeholders on the idea of introducing a voluntary standard for customs intermediaries.

Ilona Kawka

customs brokers
Explainer
icon
Customs brokers in Europe: Shaping and establishing a future-proof role
28-01-2024

Case law tells us how importing and exporting SMEs, which do not have in-house customs expertise, understand their role and responsibilities, as well as those of a customs broker. Often, when a dispute arises with customs over penalties imposed on an importer or exporter for an offence, the company claims that it was confident that it had properly fulfilled its obligations by entrusting customs clearance to a professional service provider - the customs broker. The company therefore learns the hard way about its customs-related responsibilities and obligations. What role does the customs broker play in preventing such situations? In this article, we argue that customs brokers need to take on the role of proactive educator and suggest a way to do this.

Enrika Naujokė

customs brokers
Explainer
icon
Customs brokers in Europe: Shaping and establishing a future-proof role
28-01-2024

Case law tells us how importing and exporting SMEs, which do not have in-house customs expertise, understand their role and responsibilities, as well as those of a customs broker. Often, when a dispute arises with customs over penalties imposed on an importer or exporter for an offence, the company claims that it was confident that it had properly fulfilled its obligations by entrusting customs clearance to a professional service provider - the customs broker. The company therefore learns the hard way about its customs-related responsibilities and obligations. What role does the customs broker play in preventing such situations? In this article, we argue that customs brokers need to take on the role of proactive educator and suggest a way to do this.

Enrika Naujokė

customs brokers
Perspective
icon
Customs brokers and their management: current challenges and the future
14-01-2024

Customs brokers are an important part of the customs ecosystem. Both parties - traders and customs - can benefit greatly from working with these professional intermediaries. Customs brokers take on the complex tasks related to customs clearance, protect and serve the interests of the parties involved while balancing their different needs (e.g. fast delivery vs. thorough control) and save them a lot of time so they can focus on their core activities. This topic is not new, and one might think that these areas of operation should already be established and standardised. However, discussions at the 19th Authors' Meeting showed that there are still more questions than answers in the countries of Europe and America.

customs brokers
Perspective
icon
Customs brokers and their management: current challenges and the future
14-01-2024

Customs brokers are an important part of the customs ecosystem. Both parties - traders and customs - can benefit greatly from working with these professional intermediaries. Customs brokers take on the complex tasks related to customs clearance, protect and serve the interests of the parties involved while balancing their different needs (e.g. fast delivery vs. thorough control) and save them a lot of time so they can focus on their core activities. This topic is not new, and one might think that these areas of operation should already be established and standardised. However, discussions at the 19th Authors' Meeting showed that there are still more questions than answers in the countries of Europe and America.

customs brokers
Point of view
icon
Elevating partnerships between Customs brokers and Customs authorities – the way forward
19-10-2023

One of the benefits of being a Customs broker providing services at the international level is experiencing the flexibility and efficiency of many Customs authorities. One of the challenges is dealing with inconsistencies in how they apply regulations, and the lack of a standard in the processes and technologies they use, which prevents them from collaborating more productively with each other. In this article, we compile input from companies, organizations and individuals to give an overview of the challenges they face, explain existing co-operation mechanisms between Customs, brokers and intermediaries, and explore what more could be done.

Michael Douglas

customs brokers
Point of view
icon
Elevating partnerships between Customs brokers and Customs authorities – the way forward
19-10-2023

One of the benefits of being a Customs broker providing services at the international level is experiencing the flexibility and efficiency of many Customs authorities. One of the challenges is dealing with inconsistencies in how they apply regulations, and the lack of a standard in the processes and technologies they use, which prevents them from collaborating more productively with each other. In this article, we compile input from companies, organizations and individuals to give an overview of the challenges they face, explain existing co-operation mechanisms between Customs, brokers and intermediaries, and explore what more could be done.

Michael Douglas

customs brokers
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