How do customs brokers help your business grow?
International trade dates back to the biblical times when caravans went covering miles of scorching desserts and freezing night falls to trade their goods. In recent times the complications of long trade routes and harsh weather and climate have subsided, but they are replaced with an equally pressing matter; Customs. Customs procedures are a very important part of the supply chain. Therefore, the distribution task must be carried out by personnel with experience in the field.
A correct study of each case allows companies to save time, costs and problems. The greater the specialization of the company dedicated to international transport, the greater personalization it can contribute to specific cases. Apart from the general controls followed worldwide in all customs, each country has its restrictions, documentation requirements, and tax rates.
There are several issues you have if you’re new to the import and export business. The best way to have a smooth hold in your newly started venture is to take help from a proper customs brokerage. It’s easy to get panicked when you face the ever-changing customs of different countries having different rules and regulations. A customs broker can be very useful to tackle all the documentation problems you might face.
The most frequent problems which occur when exporting or importing merchandise is:
- The type of merchandise or the declared value does not correspond to what is transported.
- Due to random inspection, if they detect fraud in the declaration of the merchandise, you will have to pay the corresponding penalty to withdraw your merchandise from customs.
- If the merchandise is illegal in the country of destination, the embargo is carried out.
- The invoice does not contain INCOTERM. The INCOTERM determines the obligations and costs borne both the buyer and the seller in an international trade transaction and must appear reflected in the bill.
- The sales invoice includes VAT. It is quite common for invoices to include VAT if the sale was made within the country. However, it is not appropriate to apply VAT to goods destined for export — errors in the original documentation.
- If there is an error in a certificate, license, or authorization required for the type of product or by the destination where you send the merchandise, the correct version will be required.
- Absence of original documentation.
These issues are very likely to occur, and they might sway you away from the field of international trade. Exporting and importing goods is a business that earns $1.2 trillion annually. Employing the services of a customs broker is a very wise choice for your young business.
How the custom agent facilitates the shipment of goods to companies?
The customs agent is responsible for the management of merchandise to be exported or imported. They are essential for companies that trade internationally.
A customs broker aims to facilitate shipments in the foreign trade chain. For this, extensive knowledge is necessary regarding the regulations enforced in each country, as well as being updated about them. Taking care of these challenges is the main way to help companies: freeing them from the burden of dealing with customs issues.
Customs brokers can help your business:
Their duties go beyond administrative processing, they handle:
- Client representation
The involvement of a customs broker is very important in customs clearance and necessary for the Tax Agency.
- Logistics management
They coordinate the means of transport, warehouses, and destinations so that orders arrive on time at the indicated place. Banks, insurance, regulatory authorities, and shipping agents come into play in this complex process.
- Payment of taxes
VAT and tariffs are required to allow goods to leave. The customs agent manages the payment on behalf of the importer. They are also responsible for appealing notifications that arrive from the Tax Agency on behalf of companies.
Customs require an inspection of the packages. The objective is the control of illegal substances and the fight to end smuggling. Customs broker acts as a representative of the exporter or importer whenever necessary.
- Issuance of certificates
In addition to the cumbersome bureaucratic process, customs brokers are responsible for processing the certificates of origin which the foreign trade needs.
- Advisory Services
Experts in the foreign trade services advise the client on the best way to send stocks. The up to date information on trends in the sector or changes in regulations will help the company make better decisions in the production chain.
A customs broker is of vital importance to your business in commercial transactions worldwide. Employing the services of a customs broker encourages the economic expansion of your business without damaging its credibility. You can free yourself from the hassle of hefty documentation, taxes, tariffs, and fines; have a reputable customs broker handle it all for you.