Customs broker (customs representative)

TAISU-TB company is a licensed customs broker. Our experience spans more than 20 years in the field of foreign trade activities and customs clearance. Our company’s specialists provide a full range of services for customs clearance of goods from abroad.

Who is a customs broker and why is he needed?
How to become a customs broker
How to choose a customs broker
List of services provided by a customs broker
Geography of customs broker work
Cost of customs broker services
Bottom line

Who is a customs broker and why is he needed?

A customs broker is a company that acts as an intermediary between the customer and customs. Customs broker is a slang name for a customs representative who, on behalf of his client, participates in customs procedures, performs customs operations and provides other services necessary for the release of a consignment of goods for free circulation in the territory of the Customs Union.

According to the current legislation, the declarant at customs can be either the organization itself that transports the cargo or its representative acting on its behalf.

The existence of such a function as customs representation is beneficial to all parties involved in foreign economic activity:

state and customs. Since it is easier for officials to control the process of transporting cargo across the border, its registration at the post and payment of all necessary payments and taxes. A customs broker acts as a kind of guarantor for his client;
to the customer. Since there is no need to deal with the resource-intensive process of customs clearance. The likelihood of errors when drawing up documents, and, as a result, delay of cargo at customs, is significantly reduced. Also, the declaration process takes significantly less time due to the fact that the broker has its own staff of qualified specialists who have extensive experience and a well-functioning work algorithm.

Rights and obligations of a customs representative

A customs broker has the right to:

demand from your client documents and information necessary for customs clearance of cargo;
check documents for accuracy;
insist on fulfillment of customer requirements at customs.

The customs broker is obliged:

deal with the declaration of goods and their placement under the customs procedure;
control the payment of all necessary customs duties and taxes;
provide customs with documents and information about the goods;
maintain strict records of declared goods;
report to customs authorities.

The duties of a customs broker do not include control over actions that are assigned to the customer himself.

Fill out and submit the declaration

Preparing a customs declaration correctly involves more than just filling out the boxes on a form. You can miss one number and get into trouble with customs.

Example: Selection of the HS code. Each product has its own code of the commodity nomenclature of foreign economic activity (TNVED), according to which customs duties are calculated. The HS code is also selected using professional programs and indicated in the customs declaration. If you make a mistake, customs may impose a fine or even initiate a criminal case.

How to choose a customs broker

A large number of companies in Russia call themselves a customs representative, although in fact they are not one. A customs broker can be a legal entity that is included in the official register of customs representatives. There are about 500 of them on an ongoing basis, but there are many more of those who provide customs declaration services.

When choosing a customs representative, you should focus on the following criteria:

work experience of 10 years. The level of professionalism is directly related to the experience of a customs representative in the field of foreign trade;
a staff of certified specialists who will be interested in working with the client;
automated client services speed up the customs clearance process and expand the scope of control over it;
comprehensive one-stop service implies the provision of the full range of services necessary for customs clearance of cargo from abroad;
developed infrastructure, presence at customs clearance sites. A good broker always opens branches at the locations of the main transport hubs and customs posts in order to control the customs clearance process and promptly respond to possible problems.

The reputation of the broker at customs is no less important. A positive business reputation helps to solve customs clearance problems more effectively. A customs broker with extensive experience is known at key customs posts; he always prepares and submits documentation flawlessly, which allows him to receive unspoken loyalty from customs authorities. Customs officers understand that if the clearance is carried out by an experienced, reputable broker, the likelihood of errors is minimal, and the clearance procedure will be completed quickly and correctly. The reputation is also confirmed by various industry ratings compiled by professional market participants.

A licensed customs representative has the right to make an application to customs on behalf of the client, indicating himself in column 54, under his seal and bearing full responsibility to the customs authorities for the provision of information. Companies that are not included in the FCS register operate under the client’s seal, which is illegal. Only the client himself, using his digital signature, must submit the DT and approve it with this stamp.

Anyone who begins to conduct foreign economic activity has the idea of creating a staff of their own declarants. However, this is not beneficial for several reasons:

the need to employ several specialists to minimize risks;
employee salaries are often more than the broker's commission;
complex organization of personal presence at customs and the resulting unnecessary costs.

Smart business management involves delegating authority to minimize costs, so working with a qualified customs broker is often much more profitable, both in the long and short term.

Responsibility of the customs representative to clients

The broker is responsible to the client within the framework of the obligations specified in the contract. In fact, by performing operations with goods at customs on behalf of the customer, the representative takes responsibility for them.

In order to protect customers from unscrupulous brokers or from their inept actions, the law imposes on the latter the obligation to insure their liability to the declarant.

Typical cases, the risk of which is insured, include:

violation of deadlines for filing a declaration;
incorrect calculation of customs duties, duties or taxes;
incomplete payment of duties required by customs, etc.

If it so happens that the client’s property is damaged due to the actions of the representative, then he can receive compensation for losses from the insurance company. This measure ensures a balance between the interests of the representative and the client.

In addition, by virtue of the law, the broker is jointly and severally liable for failure to pay mandatory fees, duties, taxes, interest and for filing false documents, unless he proves that he did not know about these circumstances.

note

: the representative is not responsible for the unreliability of documents provided by the customer, for violation by the customer of the chosen customs regime after the release of goods from customs, as well as for violation of the rules for labeling excisable goods and other actions of the customer, for which he is independently responsible.

Responsibility of a customs broker to the state

For actions that violate the norms of international agreements and legal acts in the field of customs relations, brokers are responsible in accordance with the legislation of the participants of the Customs Union.
In Russia, a case of administrative offense may be brought against a customs representative:

according to Art. 16.2 of the Code of Administrative Offenses of the Russian Federation for reporting false information about the codes of goods according to a single nomenclature, with simultaneous unreliability for the purpose of exemption from mandatory payments at customs;
according to Art. 16.7 of the Code of Administrative Offenses of the Russian Federation for reporting false information about the cargo or for using false documents in customs operations, when such actions may entail a violation of international standards.
according to Art. 16.23 of the Code of Administrative Offenses of the Russian Federation for carrying out activities at customs by a representative who is not included in the register or who was included in it on the basis of forged documents.

Also, depending on the degree of guilt in the offense committed, the broker may be subject to criminal liability.

List of services provided by a customs broker

Each customs representative provides the following services. Depending on the company, this list may vary slightly. Often, in addition to customs clearance, the client needs logistics services, so it is considered a big plus if the broker has a transport forwarding department.

stages of consultation when concluding a foreign trade contract and all the news;
preliminary study and passage of delivery goods;
preliminary study of logistics;
temporary storage warehouse services for placing a consignment/vehicle in the customs inspection zone;
customs declaration, inspection support and other actions related to customs clearance of goods are carried out;
continuous electronic online informing of the customer about the status of the cargo;
prompt support for processing additional requirements of customs authorities, including confirmation of the declared value;
full consultation of the customer within the terms of a possible post-audit;
preparation and assistance in obtaining permits;
consultations on issues and tasks of obtaining decisions on the classification of goods representing complex objects;
consultations on organizing the delivery and storage of goods in incomplete or unfinished form, imported within a specified period of time;
assistance in organizing the VTT procedure to the places of cargo clearance determined by the Federal Customs Service of the Russian Federation;
transport and forwarding services for deliveries by any means of transport (including sea);
making customs payments using the customer’s funds or the broker’s own funds.

What documents and data does a customs representative need to organize foreign trade activities?

To start working with foreign partners and be able to go through customs procedures, you will need a certain package of documents, which may differ depending on the terms of the transaction and the country of the importer.

Basic package includes:

an agreement with a foreign partner, which stipulates the terms of trade relations;
transaction passport issued by the bank;
invoice – a payment document signed by both parties, which reflects all the data on the concluded transaction;
supporting documents for cargo, the type of which depends on the method of transportation (bill of lading, certificate of origin of cargo or railway waybill, etc.)
When importing a certain type of cargo, approvals from regulatory government agencies may be required.

In addition to the listed documents, you must have statutory and accounting documentation, payment documents for brokerage services, insurance, invoices, and more.

The customs representative will advise on the required documentation and assist in organizing their collection.
Important
: it is best to seek advice from a customs representative before the stage of signing the contract in order to be able to correct possible errors in the contract and other documentation.

More than 6 years in the customs clearance market.

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Geography of customs broker work

The customs representative must build the structure of branches in such a way that they cover the main customs posts and transport directions along which most of the goods are transported. This is necessary in order to satisfy the requirements of most clients, as well as for flexibility in planning the route.

Companies that are tied to a specific customs post and temporary storage warehouse cannot offer the client a choice of the most optimal routes and delivery methods. For this reason, the cost of customs services and logistics may increase, which is a big disadvantage for the customer.

The main cities where our branches are located are in the following cities: Moscow, Smolensk, Bryansk, St. Petersburg, Vyborg, Vladivostok, Nakhodka, Novorossiysk and Kaliningrad.

What does he earn from?

The customs representative earns from registered and completed operations for the clearance of goods and cargo. During the stages of a transaction, various unforeseen expenses often appear, so the specialist will find out the exact amount of earnings for a certain transaction after all the stages.

Working conditions and income

The broker must be included in the Register of Customs Brokers. Only with a certificate of inclusion in the Register can he work legally.

The company must have its own office - rented or own premises. It is beneficial when the office is near the customs service point, which makes running around the authorities literally shorter. If this is not possible, an office is opened in the city center or a more profitable part of it.

The broker’s “team” must have highly qualified representatives who competently perform their duties and have qualification certificates.

Necessary equipment:

Each representative has his own workstation with a PC.
Uninterrupted Internet connection.
Availability of special programs.

The average salary of representatives is 25–60 thousand rubles, depending on the region and the qualifications of the employee. If in St. Petersburg the broker’s salary is about 45 thousand rubles, then in Moscow it is 90,000.

Career

Representatives always have room to grow in their careers. Newcomers start working as simple assistants to representatives in private companies or directly in a government agency (at customs). With the advent of experience, they can confidently apply for a position as a specialist.

There is a wide career ladder in the customs system itself. With perseverance and determination, you can achieve great heights. For those who find it difficult to work in the civil service, who want to provide services within a less rigid framework, they occupy the niche of businessmen and entrepreneurs, for whom there will always be demand.

Cost of customs broker services

The cost of customs services is calculated individually for each individual consignment of goods and depends on many factors. The price depends on the customs procedure, region of registration, delivery conditions, product range, quantity and frequency of deliveries, assessment of the degree of control by customs authorities. Customs clearance specialists optimize all possible costs for the client. The final figures are determined in the contract.

Price list with prices for customs services

What should it be

Higher education required. Without it, there is practically no chance of getting an open vacancy as a customs officer or foreign trade specialist. With a certain set of qualities, even a beginner can get into a good position, but this will require hard work.

Experienced specialists are worth their weight in gold. They know how to find non-standard solutions from the most dead-end situations. And such situations happen quite often when working with customs.

What qualities should a representative have?

An expert must have the following qualities:

Purposeful and ambitious. In order not to stagnate in one place, a broker must have a specific goal that will push him to take action, learn and improve his skills. If a representative does not seek advancement in his career or to expand his knowledge base, he is likely to be quickly pushed out of the market by experts with ambitions who strive for certain heights.
Stress resistance. The work itself requires a lot of emotional stress, since there are often complex, confusing situations that the broker needs to resolve. At the same time, he still has to deal with wayward and capricious clients, while remaining friendly and helpful to the declarant.
Communication skills. Without the ability to find a common language with any client, an expert risks conflicts of interest with the customer and failed transactions.

The representative must be able to quickly respond to emerging difficulties and find innovative solutions. Have strategic thinking in order to clearly plan actions: yours, the client’s and customs.

Bottom line

The customs clearance procedure requires an integrated approach. Successful declaration of cargo and its transportation across the border is a very complex process that requires a lot of experience and qualifications. Delegating powers or part of them to third-party companies is often much cheaper than doing customs clearance yourself. Also, when choosing a customs representative, it is worth considering many factors so that the customs clearance process goes quickly and smoothly. TAYSU-TB specialists guarantee a high level of service provision. We organize the customs clearance process in accordance with all requirements and legal norms, and also take into account the wishes and capabilities of our clients and optimize their costs.

How does it work

The broker enters into an agreement with the customer, on the basis of which he resolves issues related to the storage of goods, their transportation, payment of taxes, and determining the exact quantity of goods. In addition, at the request of customs, he manages:

Loading, unloading or reloading goods.
Correcting damaged packages, opening them or repacking them.
Opening premises or containers where customs clearance objects may be located.

The representative for customs is the party who accepts all claims in case of problems with clearance. Roughly speaking, if a businessman violates some of the terms of the code, the broker representing his interests will be to blame for this, who did not identify these problems. The representative does not bear full responsibility, but runs the risk of “running into” unscrupulous businessmen.

Types of services

The main services include:

Submission of information (in business language this is declaration) about vehicles, goods or cargo.
Providing the necessary documents directly to customs authorities.
Ensuring payment of necessary payments for declared objects.
Providing declared objects to customs officers.

The broker can also perform other operations that will be required when performing customs clearance of the objects of the transaction with the client.

At the preliminary stage, the broker performs a number of additional actions:

Notifies the customs authority about the future export of goods from the customs territory.
Compiles the necessary packages of documents required at the preliminary stage of the transaction.
Places the objects specified in the contract with the customer into a temporary storage warehouse.

All services that the broker performs will be specified in the agreement between the representative and the declarant.

What knowledge should you have?

The broker must know:

Customs legislation.
Fundamentals, procedure for conducting customs operations.
Rules for the accurate calculation of customs payments and fees.
Legal principles closely intertwined with the customs sphere.

This is an incomplete list of knowledge that a customs representative must have. The main thing is that the expert must be able to apply his knowledge in practice, and this requires experience.

How much do their services cost?

You can find out the exact cost of services only by personally contacting a representative.

The assessment of the work done consists of several points:

type of exported/imported goods
amount of cargo transported
departure country
presence or absence of past orders
the mediator's work itself
expenses at different stages of registration.

When the broker receives all the information about the transaction, he will be able to give an approximate price.

But you can find out how much a broker earns by looking at vacancies. So, in Novosibirsk, a sales manager for logistics and customs services will receive from 60,000 rubles to 200 thousand rubles, and in Yekaterinburg - 36–45 thousand rubles.

Minimum amount for work

The minimum amount includes the cost of services provided by the representative. Often, all tariffs are indicated on the official portals of companies.

Terms and procedure for inclusion

To obtain a license and enter a legal entity into the Register, you will need to collect a package of documentation for the Federal Customs Service. It consists of the following evidence:

constituent documentation of the legal entity;
bank statements and guarantees confirming the opening of accounts;
certificates of creation and payment of contributions to the authorized capital;
company accounting;
extracts from the tax office confirming the absence of debts;
business plan;
employee certificates.

Next, a company wishing to provide customs escort will need to submit a package of documentation and an application to the government agency. The application must contain the following information:

name of the legal entity without abbreviations;
organizational and legal form of the company;
TIN, OKPO;
information about the founders;
details of the state registration certificate;
legal addresses of the company and divisions;
details of all bank accounts;
information about the authorized capital, deposits, contributions of shareholders;
information about collateral and funds;
types of cargo that are planned to be escorted through customs;
information about guarantors;
details of the risk insurance contract;
management information.

Watch the video on the topic:

In order for a company's application to be considered by the authorized body, it will be necessary to pay a fee of 100 minimum wages. If there are no comments on the application and documentation, the review period will not exceed 30 days. The applicant is then notified of successful verification in writing. Next, you will need to pay for obtaining a license (500 minimum wage), after which information about the customs broker is entered into the register. Payment can be made in national and foreign currencies used on the territory of the Russian Federation.

If errors are detected, the waiting period for a response may increase to 90 days. During this period, the Federal Customs Service has the right to make requests to banks, the tax office, conduct investigations, and audits.

Pros and cons of cooperation

Advantages of cooperation with a representative:

Insurance against certain risks.
Save time.
Highly qualified assistance in controversial situations.
Technical equipment of the broker (special programs).
Escort “at the border” and checking compliance with customs regime.

A customs broker is a case where cooperation with a licensed specialist has virtually no disadvantages. The main thing is to choose the right representative and not run into a scammer.

Possible risks

As a rule, the following risks are associated with customs:

failure to properly prepare documents
errors in calculating taxes or fees
late declaration
incorrectly selected product codes;

It is worth preparing documents in advance, finding out the safe period before the date of export/import of goods.

Conditions for inclusion in the Register

To obtain a license and be included in the Register, a legal entity must meet the requirements of the above-mentioned RF Regulation No. 873. The following conditions must be met:

The company must have certified employees involved in processing goods and transport crossing the borders of the Russian Federation. Some companies work with one type of product. In this case, one specialist with permission is sufficient.
Concluding a risk insurance agreement with the customer necessary to protect the interests of the shipper in the event of failure to fulfill obligations. The amount of insurance is calculated by the minimum wage and cannot be less than 10,000 specified units.
The broker is obliged to defend the interests of the shipper, but to act within the framework of civil and customs legislation.
A legal entity must have an authorized capital and pay taxes and fees required by law. It is also necessary to have a financial reserve in order to pay penalties and penalties caused by the professional mistakes of representatives. We are talking about violations of the law, agreements with the customer, etc.
The material and technical base of the company must allow the implementation of the complex of works necessary for customs escort of goods.
Each transaction with goods and transport is subject to accounting. The responsibilities of the legal entity include ensuring proper accounting.

Only after fulfilling the presented conditions does a legal entity have the right to obtain a license and be included in the Register. To obtain a license, you will need to pay a fee of 500 minimum wages.

Certificate of inclusion in the Register

It is formed on 2 sheets, one of which is transferred to the broker company. The second copy remains at the disposal of the Federal Customs Service. The validity period of the license is not limited to time periods.

Consequently, only a legal entity can become a customs broker after fulfilling a list of conditions. Work on customs escort of cargo will require from an employee of such a legal entity knowledge of many legal, economic and customs regulations, the basics of logistics processes, and so on. Therefore, applicants should thoroughly study the legislative norms.

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