Deciphering Your Broker's Bill

How much are you really paying your broker to clear your entries?$60……$70……$80……$90…..$150…..$200+

Quotations for customs brokerage services are usually dependent on a number of factors including the complexity of the entry, your anticipated entry volume and sometimes your level of experience in the business. The base entry fee broker’s charge is usually between $75-$100. What many importers fail to recognize is that even if they are quoted a dollar amount entry fee, that might not be all that they are paying for. If the invoice from your broker contains multiple lines of charges then this is what is commonly referred to as the laundry list fee schedule. As you can see in the chart to the right the entry fee was quoted at only $45, but the accumulation of fees resulted in an actual entry fee of $142. Many of the line items on the bill were for “out-of-pocket” payments to other service providers such as carriers, local truckers, Customs or a terminal. The remaining items on the invoice are considered revenue items or a component of the broker’s income for handling this transaction.

The bottom line is that despite thinking your base entry fee is only $75; if your invoice contains any one of these charges; your entry rate is more than $75. We recommend that you carefully review your broker’s invoices to ensure that the fees charged are consistent with the fees quoted and that the fees charged are also warranted.

To access the tool TRG has created to help you decipher your own broker’s bill click here. What can I do to lower my costs, I’m not a licensed Customs Broker?

What can I do to lower my costs, I’m not a licensed Customs Broker?

File your entries in-house with our ABI system and realize there is no guessing to what you are paying for. When we say a “flat rate”, we mean a “flat rate”. After your initial one time start up fee (either $1,000 or $2,000) there are two pricing options available

$30/entry
$20/entry + $1,200 yearly fee

Another cost savings our customers appreciate is the guarantee that they will only be charged once per entry. Brokers may charge you multiple times for the same entry if they need to go back and make a correction or change to your entry. With TRG Direct, you can alter your entry as many times as you need and will only be charged for the initial transaction.

For more information contact us! www.TradeRiskGuaranty.com

Truth & Consequences

Are import entry filing errors affecting your bottom line?

"Importers are expected to familiarize themselves with their supply chains and exercise reasonable care with their import practices."

The constant change and complexity of importation keeps U.S. Customs faced with many challenges today. Customs 2007 Year in Review reported that there are 317 active U.S. ports of entry where over 190,000 vessels dock annually. Customs must track more than 10 million cargo containers and process over 31.4 million entry documents each year. Even with these considerable challenges, Customs still reviews 100% of all container shipping information.

The U.S. Census Bureau reports that over 8% of all import transactions contain one or more errors. The Mod Act of 1993 puts all reporting liability on the importer of record. Importers are expected to familiarize themselves with their supply chains and exercise reasonable care with their import practices. With that, Customs brokers are not held accountable for compliance reporting issues.

Has your company been subject to these costly reporting errors?

A large camera maker, imported $60 million worth of duty-free camera equipment that was incorrectly labeled “Made in Hong Kong” when in fact the equipment was made in China. The camera maker settled with Customs out of court with a $20M fine.

Another Importer's Customs broker failed to fill out duty-free forms for client merchandise. Because of the Customs broker’s error, the telecommunications provider was incorrectly assessed an 8.5% duty rate. Customs agreed that the error was a mistake of fact, correctable under § 1520(c)(1),but because the importer could not explain why the broker failed to do his job, the duty rate was not reversed and the company had to add legal expenses to an already burdensome import duty.

The Customs broker for an importer of LCD screens, assigned the wrong tariff number, resulting in a $6M penalty to the company. CBP rejected the company’s “reasonable care” defense that reliance on a customs broker to classify merchandise correctly is sufficient to establish that an importer exercised reasonable care.

Take control of your entry filing and to avoid those costly errors.

TRG Direct is a web based self filing system that allows importers to clear their customs entries without the assistance of a customs broker. Our customers choose to file direct because it enables them to control the entry filing process and avoid the consequences of reporting errors.

Contact us for more information: www.TradeRiskGuaranty.com