What Is a Customs Brokerage License?

Custom brokers include private individuals, partnerships and associations. An estimated 11,000 licensed customs brokers are active throughout the United States as of 2010. A customs broker is the middle man for an importer or exporter. The broker chooses to work individually or for a company. At least one officer or associate at a company must be individually licensed as a customer broker.To become a customs broker and licensed to do business, you must pass an exam administered by U.S. Custom and Border Protection.
  1. Function

    • Customs brokers file necessary customs entries. A customs broker takes the proper steps to release goods in custody for the benefit of the customer. Brokers consult customers on transportation options, types of carriers and shipping routes. In helping the customer, a broker must have up-to-date knowledge of exchange rates, trade requirements, procedures and tariff regulations. Active customs brokers must stay informed of the frequent government regulation changes so they can give proper information to customers.

    Eligibility

    • Potential custom brokers must be a citizen in the United States and at least 21 years of age. The person cannot be a current federal government employee and has to possess "good moral character," according to CBP. The custom brokers license is accepted in all 50 states.

    Studying for the Exam

    • The official custom broker textbook contains 34 chapters. Classes and seminars are available online and at local CBP ports. Five-day classroom programs consist of reading the text and comparing the information to either the Harmonized Tariff Schedule or Title 19, Code of Federal Regulations. Online classes allow students to work at your own pace.

    The License Exam

    • The customs broker license exam is an open-book test with 80 multiple-choice questions based on the information in the study materials. The passing grade for the exam is 75 percent. If you fail the exam, you can take it unlimited times until you pass. The study materials consist of the The Harmonized Tariff Schedule of the United States, Title 19 of the Code of Federal Regulations, Specified Customs Directives, and the Customs and Trade Automated Interface Requirements document. You have four hours to complete the exam, which is administered at CBP service ports the first Monday in April and October--or on the first Tuesday, depending on religious holidays. An application fee of $200 is due at least 30 days before the start of the exam.

    Application Process

    • After passing the exam you must submit a broker license application which will be reviewed by a CBP port director. You must apply within three years of passing the examination. The applicant can apply to any CBP port where he wants to work as a broker. The process includes background security checks, so the overall application process takes eight to 12 months. The background check includes Social Security history, criminal history and financial history.

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