The Top 5 Holidays that Cause the Most Headache for Customs Brokerage Industry
Mistakes in customs clearance can have far-reaching repercussions beyond just expensive delays and hassles. The US made 50,952 trade seizures, handed out 1,385 trade fines, and raked in $42.2 million in importer audit fees in 2018.
Because of this, the most successful companies in the world, regardless of industry, rely on experts for customs brokerage services.
Licensed customs brokers handle every part of your import and export customs clearance, cutting down on delays, managing trade norms and laws, and even taking care of document production and filing for you so you can return to concentrating on your business.
However, as more people require things to be shipped during the holiday season, the mailing process slows because of ranking transportation and priority mail. These poor speeds are a problem for businesses because they must promptly get their goods through customs.
The Customs Brokerage Industry
Customs brokerage is a fairly fragmented sector. The market has a large number of customs brokers, which makes competition fierce. The two leading companies on the market are FedEx Corporation and United Parcel Service. A.N. Deringer, C.H. Robinson, Livingston International, and Expeditors are a few further important participants.
FedEx and UPS together are thought to account for up to 35% of the market, according to estimates based on the number of submissions. Although the top five to ten businesses account for more than 50% of the industry, the remaining companies are more numerous and hold very small market shares.
Professionals with a license from Customs and Border Protection (CBP) and customs brokers handle the paperwork and logistics associated with importing and exporting products on behalf of their clients. On behalf of their clients, brokers submit information and payments to CBP.
A broker can be a single person or a brokerage, which is a legally recognized company, group of companies, or partnership.
The CBP license system makes sure that brokers are educated about import duty, tax, and rate fees, as well as entry procedures, admissibility requirements, classification, and valuation.
In essence, a certified customs brokerage helps their clients import goods and commodities much more easily.
Among the import processes customs brokers handle are:
- Customs declarations and the creation of extra documents
- Coordinating with the appropriate government agencies on your import
- Calculating duties, taxes, and rates
- Help with clearance from government agencies
With requirements including proper paperwork, fees paid in full, and specific procedures that must be followed for each product transported both locally and internationally, moving things through customs already poses a special set of challenges for businesses.
No matter what kind of goods your company ships, you won’t be able to accomplish it correctly if you don’t have a reliable customs broker or an efficient procedure for dealing with customs. Any time of year, these issues can cause shipping to take longer.
The Top 5 Most Terrifying Holidays of the Year for the Customs Brokerage Industry
With a very specific and technical job at hand, your customs broker is entirely under the pump when it’s the season of spending. The holiday season brings about a barrage of loads and if you want your goods to be cleared timely, take appropriate tips from your broker.
The top 5 most painful holidays for the customs brokerage industry are:-
- New Year
- Easter and Good Friday
- Boxing Day
Every year around the holidays, more and more people purchase online, and this year is no exception. Online consumers throughout the nation are predicted to have another record-breaking year this year.
Since 20% or more of products are bought online during the holidays, the delivery process is becoming more and more sluggish. The influx of people has caused problems for those that ship goods internationally as well as shop online. It might be stressful to manage all transportation ends. During the holidays, total efficiency is required.
The DOs and DON’Ts
We advise anyone who is importing products for the holidays to ensure that their designated agent has all supplier or sales receipts before the goods arrive. This would ensure that the items are cleared and released on schedule.
Individuals importing goods for the first time through a courier or broker agency must register with CBC using the Customs Online System (COLS). You must submit your electronic application together with a legible and current government identity document, such as a driver’s license or passport (voter ID is not allowed).
You will get an email from CBC with login information once your application is accepted. After completing this procedure, you have full authority to add or remove agents from COLS as you see fit.
Here are some helpful pointers to remember:
- As soon as you are aware that you are getting products, assemble the required paperwork and provide it to your agent.
- Your supplier or sale invoice should be the required documentation (s). Send your agent these materials in PDF format.
- Obtain any additional papers needed to pick up your package before the shipment arrives (e.g., approval needed from the Department of Agriculture). Ask your agent or CBC’s Customer Support Centre if you are unsure what additional information is needed.
1. Don’t assume “everyone” will be aware of the value of a certain item. Omit or distort the value of your goods.
2. Handwritten invoices are typically not accepted.
3. Do not rely on the agency to provide all required and appropriate papers; this is the importer’s responsibility.
The Holiday Conundrum
Similar to other aspects of the logistics sector, shipping products involves rigorous adherence to a set of rules and guidelines to guarantee that the goods are handled and packaged correctly from one site to the next.
Several factors influence the pace and movement of the goods you are delivering, including priority mail shipments and different package sizes. Packages may receive a higher priority ranking than others due to several factors.
While some of these factors are beyond a company’s control, it’s crucial to have professionals who are aware of how they will affect your shipping requirements to guarantee that your customers receive their items on time.
To Sum It Up
You need someone you can trust whether you are delivering big or small items that are priority or regular. Customs brokerage is a specialty of A & A Customs Brokers. It can be laborious and knowledge-intensive to handle goods correctly so they can be processed through customs.
Make sure your company is running smoothly this season! To make your shipping procedures as efficient as possible for the holiday season, work with A & A Customs Broker.