IB1u—Introduction to Customs Brokerage (U.S.)

Subscriber price: $185.00, Non-subscriber price: $255.00
Estimated total study time: 14 hours 13 minutes

This course provides an overview of the services provided by customs brokers in the U.S. It is intended for:

Importer personnel who are curious about the U.S. import process and functions of a customs broker.
Personnel newly employed by customs brokers in non-operational job assignments (e.g., accounting, HR, IT and other business support positions) to gain quick awareness of company services, customers and regulatory environment.

See also course IF1u—Introduction to International Forwarding (U.S.).

For entry-level forwarder personnel hired or transferred into operational positions, more in-depth training is needed. Refer to other operationally oriented courses in the GISTnet Course Catalog.

Introduction to the CBP; Overview of the U.S. Import Process

This lesson looks back to the beginning of U.S. customs brokerage with a look at the history, current mission and organization of the U.S. Bureau of Customs and Border Protection. We also introduce the U.S. import process with an overview of key players and additional parties that are sometimes involved.

(Estimated study time: 1 hour 22 minutes)

Introduction
Introduction to the U.S. Import Process and Parties
- The Big Picture
- Four Essential Parties
- Additional Supporting Parties
- Overview of U.S. Import Process by Transportation Mode
  - Imports by Ocean Vessel
  - Imports by Rail and Truck
  - Imports by Air Freight
U.S. Bureau of Customs and Border Protection (CBP)
- A Brief History of U.S. Customs
- A Single Law Enforcement "Face" at the Border
- The CBP Mission

Introduction to Importers and Customs Brokers

In this lesson we consider why foreign goods are imported, and by whom, and begin our examination of services provided by a customs broker.

(Estimated study time: 1 hour 15 minutes)

Introduction
Importers
- The Customs Broker's Customer
- The U.S. & Global Trade
- Who Are Importers?
- Qualifications to Be an Importer
- Legal Responsibilities of an Importer
- Restrictions on Who May Act as a U.S. Importer
Customs Brokers
- History of the Customs Broker Profession
- Current Regulation of U.S. Customs Brokers
- An Importer's Perspective of Customs Brokers
Why Do Importers Hire Customs Brokers?

Food and Other Agricultural Products Requiring Clearance by Other U.S. Government Agency

This lesson provides an in-depth overview of the various government agency controls and processing requirements that customs brokers must be aware of when handling the importation and exportation of goods. It emphasizes the importance of understanding and complying with the regulations set forth by multiple U.S. agencies, beyond just the U.S. Customs and Border Protection (CBP). The lesson covers specific requirements for different types of products, including agricultural commodities, fruits and vegetables, plants and soil, fresh and minimally processed agricultural products, processed human food products, animal feed, alcoholic beverages, and endangered species.

(Estimated study time: 40 minutes)

Introduction
Customs Brokers Must be Aware of Government Agency Controls and Processing Requirements
Agricultural Commodities
Fruit and Vegetables that May Harbor Insects and Disease
Plants and Soil that May Harbor Insects and Disease
Fresh and Minimally Processed Agricultural Products
Processed Human Food Products and Ingredients
Animal Feed and Ingredients
Alcoholic Beverages, Other Taxable Alcohol
Endangered Species

Other Products Requiring Clearance by Other U.S. Government Agences

This lesson provides a comprehensive overview of the various U.S. regulatory controls and restrictions on the importation of goods. It highlights the role of the U.S. Customs and Border Protection (CBP) in enforcing these regulations, which are designed to protect national security, public health and safety, and economic interests. The lesson covers specific regulatory requirements for a wide range of products, including pharmaceuticals, medical devices, consumer products, arms and ammunition, nuclear materials, electronic devices, motor vehicles, and hazardous materials.

(Estimated study time: 1 hour 11 minutes)

Introduction
General — U.S. Regulatory Controls and Restrictions
Pharmaceuticals, Diagnostic Equipment, Medical Devices, Eyewear, Cosmetics and Food Service Items
Controlled Substances
Consumer Products (Safety Requirements)
Consumer Products (Truth-in-labeling and Advertising)
Arms, Ammunition and Explosives, Military Items
Nuclear Reactors, Parts Thereof, and Nuclear Reactor Fuel
Electronic Devices
- FDA Radiation Control of Electronic Devices
- FCC Radio Frequency Interference
Motor Vehicles and Parts; Powered Watercraft
Containers, trucks and packing material that May Harbor Insects and Disease
- Inspection of Containers and Trucks
- Inspection of Wood & Wood Packing Materials
Dangerous Goods (Hazardous Materials)
Hazardous Waste, Environmental Pollutants, Insecticides, Pesticides
Pathogens of Interest to Terrorists

The Relationship Between Importers and Customs Brokers

This lesson begins our coverage of services which customs brokers provide by addressing the relationship between the broker and his customer, the importer, with respect to "customs business" vs. other types of services.

(Estimated study time: 35 minutes)

Introduction
Agency vs. Purely Contractual Services
Avoiding Conflicts of Interest between the Broker and Importer
Written Terms and Conditions of Service
Broker-Importer Relationship

A Customs Broker's Relationships with Transportation Carriers & Other Service Providers

This lesson addresses the operational relationships a broker must pursue with carriers and other service providers on behalf of its client importers.

(Estimated study time: 59 minutes)

Introduction
Arriving International Cargo Requires a Customs Procedure
Routine Interaction with Transportation Carriers
Non-Routine Interaction with Carriers — Problem Solving
Relationships with Other Types of Service Providers

Broker "Customs Business" Type Services and Fees (Typical)

This lesson introduces the range of "customs business" type services a broker provides as reflected in fees and charges made to the importer.

(Estimated study time: 1 hour 8 minutes)

Introduction
Broker Fees and Charges to an Importer
- General — Resources and Services Brokers Provide
- "Customs Business" Services & Fees
  - General — Services & Fees for "Customs Business"
  - Customs Broker Charges Invoiced to an Importer
- Typical Broker Fees for "Customs Business" Services
- Disbursements On Behalf of an Importer
- Premium and Fee for Arranging a Customs Bond

The Customs Broker's Involvement in the Cargo Transportation Process

In this lesson we address transportation-related responsibilities and services a broker must provide to assure timely customs clearance and delivery/on-carriage of the goods once cleared.

(Estimated study time: 1 hour 1 minute)

Introduction
Import Shipment Arrival Notice
Broker Transaction Initiation
Coordination by Customs Broker with Importing Carrier on Behalf of Importer
- Providing Authorization to Represent the Importer
- Requirement for a "Carrier's Certificate"
- Requirement for a Carrier's Release Order
- Payment of Destination Freight, Terminal and other Charges
Arranging Delivery or On-Carriage ("Reforwarding" Cleared Goods)
Arranging Cargo Insurance

Customs Brokerage—Part of Supply Chain Logistics

This lesson addresses the function of a customs broker in the larger context of supply chain management, together with what a customs broker can do to strengthen this role by providing additional logistical services.

(Estimated study time: 47 minutes)

Introduction
Customs Brokerage as Part of Supply Chain Logistics
Customs Brokers as Part of Integrated Logistics
- Importer's Need for Multiple Logistics Services
- Industry Need for Diverse Expertise and Global Reach
- Internally Provided Services
- External Service Networks
  - Leveraging and Extending Service
  - Acting as Lead Agent
  - Structures of Agent Networks

Advancing Funds on Behalf of the Importer; Credit Controls

A customs broker often becomes involved in advancing funds to pay incoming freight charges, and perhaps customs duty and delivery charges. This lesson addresses why this is done, and controls a broker should exercise to avoid potentially serious financial loss.

(Estimated study time: 56 minutes)

Introduction
Advancing Funds; Concerns and Fees for this Service
- Incoterms; Who is Responsible to Pay for Transportation and Other Costs?
- Why Does a Customs Broker Advance Funds for an Importer?
- Client Credit Control Process
- Broker's Obligation to Pay Charges
- Fee for Disbursing Funds

Services Beyond Traditional Customs Brokerage

Today most companies that provide customs brokerage also are engaged in freight forwarding and other types of logistics services. This lesson addresses the relationships within an organization between these different types of business activities.

(Estimated study time: 46 minutes)

Introduction
Customs Broker Involvement in Inbound Cargo Transportation
- Customs Clearance Included in Single-Provider Through Transportation
- Inbound Traffic and Breakbulk Services
- Customs Broker Acting as a Breakbulk Agent for an NVOCC
Freight Forwarding Services
Customs Broker Involvement in Distribution and Domestic Logistics (3PL) Services
Consulting

The Customs Broker-Importer Relationship; Client Satisfaction & Communication

This lesson covers the operational relationship that a customs broker must develop and maintain with his client, the importer.

(Estimated study time: 1 hour 6 minutes)

Introduction
The Customs Broker — An Expert Middleman
Client Satisfaction Success Factors
Client Satisfaction through Performance Standards and Good Practices
Every Shipment and Communication Counts — Do Things "R.I.G.H.T."
Business Communication Do's and Don'ts
- Communication Timeliness
- Communication Methods
- Formality in Communication and Appearance

Customs Broker Work Group Organization

This lesson covers ways that customs brokers organize and supervise their work groups, and the importance of each work group member understanding such organization, division of labor, work flow and their own responsibilities.

(Estimated study time: 1 hour 1 minute)

Introduction
Typical Customs Broker Work Group Organization
- General — Form Follows Function
- Integrated vs. Parallel Transaction Processing
- Integrated Processing
  - What Is Integrated Processing?
  - Benefits of Integrated Processing
  - Limitations of Integrated Processing
- Parallel Processing
  - What Is Parallel Processing?
  - Benefits of Parallel Processing
  - Limitations of Parallel Processing
- Work Group Supervision

U.S. Customs Broker Responsibilities

This lesson addresses regulatory requirements which the CBP places on licensed customs brokers with respect to "responsible supervision" of operations and employees by individually licensed brokers.

(Estimated study time: 1 hour 27 minutes)

Introduction
General — "Responsible Supervision" of Employees
Becoming an Individually Licensed Customs Broker
Company Level Customs Broker License
National Level Responsible Supervision
Responsible Supervision Functions and Relationships
Reporting Office of Record and Points of Contact
Employee Information Reporting
Grant of Authority to Employee
Revocation, Cancellation, Suspension and Penalties, Oh My!