Do I need a customs broker to import inventory into the US?

No. Customs and Border Protection (CBP) doesn't require you to hire a broker. If you are the importer of record, meaning the owner or purchaser of the goods, you can make entry yourself. Many first-time importers still use a licensed customs broker because filing is detailed and mistakes cost money, and you stay responsible for the accuracy of the entry either way.

What the law says

CBP's guidance for new importers says that certain resident importers can file entries on their own behalf, and that many first-time importers consult a licensed broker. Only the importer of record, or a broker the owner appoints, can make entry. A freight forwarder that only moves or stores the goods can't make entry for itself, but it can appoint a licensed broker.

You remain responsible even when a broker files. CBP says the importer of record is ultimately responsible for the correctness of the entry documents and for the duties, taxes and fees.

What you need to self-file

• An importer of record number. You can use your IRS employer identification number, or, without one, a Social Security number. You can also request a CBP-assigned number on CBP Form 5106.
• A customs bond, for most commercial imports. See our guide on customs bonds.
• Access to CBP's electronic filing systems. Self-filers generally need software that connects to CBP, which is a real cost and learning curve for a small business.
• Correct classification, valuation and origin. This is where mistakes happen.

When a broker makes sense

• It's your first few shipments.
• The goods are regulated by other agencies, such as electronics with FCC rules or food and beauty items.
• You import in different ways from different suppliers.
• The goods face extra duties, quotas or other trade measures.
• You want someone to handle the bond and filing while you focus on selling.

When self-filing can work

• You import steadily, with the same few products from the same suppliers.
• You've classified them before and have rulings or past entries to rely on.
• You have the time and the systems to do it, and enough volume to justify the effort.

What a broker costs and does

A licensed broker prepares and files the entry, can advise on classification and handles contact with CBP. Fees vary by broker and shipment, so ask for quotes. Brokers are licensed by CBP, and CBP lists permitted brokers in a directory on its site.

Where Shield fits

Shield doesn't file customs entries. It supports the money side of importing: a US business account, a business credit card and supplier payments. Brokers and forwarders typically take wire or ACH, and you can pay them by wire from a Shield business account. Keeping the broker's invoices with your supplier payments makes landed cost easier to track.

FAQ

Can an individual import without a business? Commercial imports are generally made by a business or person who qualifies as the importer of record. Check CBP's rules for your situation.

Does the broker pay the duties? Often the broker advances duties and bills you, but arrangements vary. Ask in advance how duties and fees are paid.

What if my broker makes a mistake? The importer of record is still accountable to CBP, so choose a broker carefully and review the entry details.

Next step

To see how Shield supports importers, visit Shield bank accounts.