Who is a Customs Broker and What He Does

One of the most challenging aspects of logistics is managing documentation and customs communications. Many businesses hire customs brokers to simplify the process of declaring goods, calculating customs duties and navigating customs procedures.

What Does a Customs Broker Do?

A customs broker acts as an intermediary between customs authorities and importers or exporters, assisting with goods declarations and the movement of commercial vehicles across customs borders. Brokers represent their clients (individuals or businesses) based on a power of attorney and take care of customs compliance for shipments. While there are also customs clearance agents, these agents work directly for customs brokers and assist with providing transportation and documents needed for customs clearance.

Customs Broker Rights and Responsibilities

A customs broker provides customs and transport services under a contract and under a power of attorney at Ukraine’s customs border. Working within legal guidelines and on behalf of the client, the broker expedites the customs clearance of exported or imported goods, so the client doesn’t have to handle declarations, payments or inspector interactions directly.

Key Responsibilities:

• advising clients on customs clearance requirements;
• conducting detailed declarations for goods, raw materials and products;
• completing customs declarations and preparing supporting documentation, including necessary certificates (e.g., sanitary or ecological);
• calculating the cost of customs duties and fees;
• liaising with customs authorities and providing required data;
• presenting goods to customs for inspection upon request;
• entering data into databases and communicating with government representatives as required by law.

Brokers also have the legal right to demand accurate information about goods and cargo from the client, as required by the Customs Code. If a client fails to provide sufficient details, the broker can use their discretion at customs while ensuring the client’s interests are protected.

A broker may decline to declare goods if the client does not provide a complete document package or if fraudulent information is found. Furthermore, brokers are not obligated to obtain permits outlined by the Law on Transport and Forwarding Activities unless specified in the contract.

Choosing a Customs Broker

The first thing to consider when choosing a customs broker is their experience with customs. A specialist should clearly understand how goods are processed and declared. It’s equally important to ask the broker about their licensing for this type of activity. This license is issued solely by the State Customs Service of Ukraine. A company with permission is included in the registry of customs brokers. 

A true professional also has experience working with cargo similar to the client’s. It’s essential to recognize that some cargoes are under special customs control, so the broker must understand the specific requirements for handling such goods. 

A good broker can check all documents in advance, before the goods cross the border. If any documents are missing, they will inform the client. Handling this at customs would incur additional fees for transport downtime, and the goods would arrive significantly later.

Becoming a Customs Broker

To become a customs broker, a person must have thorough knowledge of the Customs Code, the ability to determine cargo codes, and the skill to accurately complete customs declarations. Additionally, they must know how to calculate customs fees and manage accounting and financial reporting for transactions. 

Acquiring these competencies is challenging, so candidates must complete training and then gather the necessary documents to obtain a license. Only then are they granted the right to practice, and their information is included in Ukraine’s Customs Brokers Registry.

Regarding personal qualities, a candidate aspiring to be a customs broker should be attentive and meticulous, as these skills are crucial for filling out documents accurately. Moreover, a broker is required to stay updated with the Customs Code and any new regulations governing customs clearance procedures. A customs representative should also be communicative and able to interact effectively with government officials. In cases of complications, the broker must make decisions and find solutions. Therefore, individuals with low attention to detail, communication difficulties or a lack of confidence will find it challenging to fulfill these responsibilities.