The future of customs brokers: Is it under a real threat?

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In Episode 1 "The future of customs brokers" of the monthly CKC Podcast, we concluded that harmonisation of the regulation of customs brokers is needed and also harmonisation of the competences of customs brokers.

One of the listeners pointed out that we did not discuss the question: "Is the customs broker really under threat?". We return to this question in this Episode 2 of the Podcast and discuss it in light of the upcoming changes, especially the EU Customs Reform.

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, which is a member-observer at Confiad).

Discussion

Some of the provisions of the proposed new EU Customs Code discussed (version September 2023):

  • Article 27(1): An indirect customs representative acting in its own name but on behalf of an importer or an exporter shall be considered the importer or the exporter for the purposes of Articles 20 and 22, respectively.
  • Article 27(3): “A customs representative having the status of Trust and Check trader shall only be recognised as such when acting as indirect representative. When acting as a direct representative, the customs representative may be recognised as Trust and Check trader if the person in whose name and on whose behalf that representative is acting has been granted such status.”

Particpants noted that Trust & Check Trader (TCT) status will replace AEO status in the future. In effect, customs brokers will be pushed to act as indirect representatives and assume liability even for the fulfilment of non-customs requirements. In addition, one of the most important requirements for TCTs is to give customs direct access to the data - no more customs declarations, but direct access to company data. Participants also discussed AEO status in the EU and the UK, and the UK Trusted Trader schemes. 

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

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Comments ()

Topic spotlight
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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
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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

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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.

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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

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Explainer
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Customs brokers in Europe: Shaping and establishing a future-proof role
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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.

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customs brokers
Perspective
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Customs brokers and their management: current challenges and the future
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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
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Elevating partnerships between Customs brokers and Customs authorities – the way forward
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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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