What is a Licensed Customs Broker and How Can They Help?

On Wednesday, October 7th, 2015, Customs will conduct the final Customs Broker exam of 2015. Considered a “niche” profession, there are currently only 12,000 Licensed Customs Brokers (LCB) in the United States. Allyn International proudly employees 6 Licensed Customs Brokers who serve our clients in different capacities throughout the company.   With the test date fast approaching, it is only appropriate to explore what a Customs Broker is and how a broker can help an importer’s supply chain.

An LCB is an individual that is regulated and empowered by U.S. Customs and Border Protection (CBP). The core responsibility of an LCB is to protect the interests of the United States. Brokers are expected to demonstrate expertise in trade compliance solutions and assist importers and exporters to compliantly conduct trade business in the United States.

An LCB is identified as an individual, partnership, association, or corporation. Being an LCB allows the broker to directly conduct customs business on behalf of others. Customs business is defined by the Code of Federal Regulations as “activities involving transactions with CBP concerning the entry and admissibility of merchandise, its classification and valuation, the payment of duties, taxes, or other charges assessed or collected by CBP on merchandise by reason of its importation, and the refund, rebate, or drawback of those duties, taxes, or other charges”.

To become an LCB you must be eligible by meeting the following requirements:

Be a United States citizen at least 21 years old
Not be a current Federal Government employee
Possess good moral character

The candidate then must pass one of the two exams held by CBP each year with a 75% or higher. The exam is 80 questions, open book, and the candidate is provided a 4 ½ hour exam time. Historically, the pass rate for the LCB exam has been as low as single digits. Successfully passing the LCB exam takes hours of preparation. Once the exam is passed, the candidate must complete an extensive application process including an interview at a port with a customs agent, fingerprinting and credit score analysis.

Becoming an LCB not only provides an individual with a license and authority to file an entry with U.S. Customs, but the expertise and knowledge of custom related transactions. The experience of an LCB can help importers manage risk, create new trade compliance procedures, and unearth savings opportunities.

Allyn International’s experience and diverse global trade compliance background provides a strong foundation for client support. For more information on Licensed Customs Brokers, or to find out about how Allyn International can assist with your Trade Compliance program, contact sales@allynintl.com for more information.

Contributor: Kyle Couchois