Customs brokers

What a customs broker is

A customs broker is a person or company licensed by U.S. Customs and Border Protection (CBP) to transact customs business on behalf of importers: preparing and filing entries, classifying and valuing goods, and paying duties and fees. A license is required to do that work for others, but an importer may transact its own customs business without one, under 19 CFR 111.2.

The licensing regime is 19 CFR Part 111, the full text of which is on the eCFR. For an importer bringing goods in from China, the broker is usually the party that turns a commercial invoice, packing list and bill of lading into a filed U.S. entry. That makes the broker central to the transaction. It does not make the broker responsible for the importer's compliance, which is the point most often misunderstood.

The term "customs broker" (the licensed occupation) is sometimes used loosely for freight forwarders, logistics companies and Chinese export agents. In U.S. law it has a narrow meaning, and the difference matters for liability, for the power of attorney and for who can actually file a U.S. entry.

What counts as customs business

"Customs business" is defined in 19 CFR 111.1. It covers activities involving transactions with CBP concerning:

• the entry and admissibility of merchandise;
• its classification and valuation;
• the payment of duties, taxes and fees;
• refunds, abatements and drawback;
• the preparation of documents filed with CBP for any of these purposes.

Two activities are excluded: the mere electronic transmission of data, and an importer's own corporate compliance activity. A software platform that only transmits data an importer prepares is not transacting customs business; a company that decides the classification on the importer's behalf is.

How a broker is licensed and kept licensed

Becoming a broker

An individual applicant must be a U.S. citizen, at least 21 years old, not a federal employee, of good moral character, and must have passed the Customs Broker License Exam with a score of 75% or higher within the three years before applying (19 CFR 111.11). The exam is held on the fourth Wednesday in April and October, and candidates register at least 30 days ahead (19 CFR 111.13). The license application goes in on CBP Form 3124 within three years of passing (19 CFR 111.12).

The national permit

Since the 2022 modernization rule (CBP Dec. 22-21, 87 FR 63313, 18 October 2022), a broker operates under a single national permit that authorizes customs business throughout the U.S. customs territory; district permits were eliminated (19 CFR 111.19). For calendar year 2027 the annual national permit user fee is $190.88, up from $185.38, due by 29 January 2027, according to a trade-compliance summary of an October 2026 Federal Register notice. Non-payment revokes the permit by operation of law.

Ongoing obligations

• Triennial status report, due 1 February every third year. Late filing suspends the license by operation of law, and revocation follows if it is not cured within 60 days of notice (19 CFR 111.30(d)).
• Continuing education of at least 36 credits per triennial period. Brokers certify compliance for the first time on the status report due 1 February 2027. Non-compliance leads to a 30-day cure notice, then suspension, and revocation if unresolved 120 days after suspension (19 CFR 111.101–111.104).
• Responsible supervision and control over employees who do customs business, with employee lists updated within 30 days (19 CFR 111.28).
• Records kept at least five years after entry; powers of attorney kept until revoked; a records breach reported to CBP within 72 hours; records produced to DHS within 30 days on request (19 CFR 111.21–111.25).

What a broker does on a China import

The working sequence on a typical ocean shipment from China runs in this order:

1. The importer signs a customs power of attorney (POA, the written authority for the broker to act for the importer), usually on CBP Form 5291 or an equivalent document.
2. If engaged to do so, the broker files the Importer Security Filing (ISF) before the container is loaded in China.
3. The broker classifies the goods in the Harmonized Tariff Schedule of the United States, including the Chapter 99 lines for Section 301 and any Section 232 duty, and determines the customs value.
4. The broker files the entry for cargo release (CBP Form 3461 or its ACE equivalent) and the entry summary (CBP Form 7501) through ACE, CBP's Automated Commercial Environment.
5. Duties and fees are paid by ACH, either through the broker or directly by the importer.
6. The broker transmits any partner-agency data required for the product, for example to FDA, CPSC, EPA or USDA.

The 2022 rule also requires brokers to verify the identity of new clients. The specific section of Part 111 was not confirmed in the research behind this page, so it is not cited here.

Brokers carried an unusual workload in 2025 and 2026: the IEEPA tariffs, the Section 122 surcharge from 24 February to 24 July 2026, the Section 301 forced-labor duty from 24 July 2026, and IEEPA refund claims through CBP's CAPE module in ACE, which opened on 20 April 2026. Importers that had not set up ACH refunds were blocked from receiving CAPE refunds until they did.

Where liability sits

The importer of record stays liable. The importer of record (the party in whose name the entry is filed) remains legally responsible for duties, classification, valuation and country of origin when a broker files the entry. Part 111 makes the broker say so: under 19 CFR 111.29, a broker must exercise due diligence, pay government charges on time, give accurate advice, and tell clients that the importer of record remains liable for customs charges. A broker's own failings can lead to suspension, revocation or penalties against the broker under 19 CFR 111.53 and 111.91, but underpaid duty remains the importer's debt.

The power of attorney must run directly to the broker. When a freight forwarder is involved, the broker must execute the customs POA directly with the importer, not through the forwarder (19 CFR 111.36(c)(3)). General customs POA rules are in 19 CFR Part 141, Subpart C.

A forwarder is not a broker by default. Freight forwarders and NVOCCs (non-vessel-operating common carriers, which issue their own bills of lading without operating ships) are not customs brokers unless they hold a broker license or employ licensed brokers. Many logistics companies do have an in-house licensed broker, which is why the distinction is easy to miss.

A Chinese "customs agent" cannot file a U.S. entry. An export agent in China clears goods out of China. Only a U.S.-licensed customs broker, or the importer itself, can transact customs business with CBP.

Using a broker or filing your own entries

An importer is not legally required to use a customs broker. Self-filing is lawful under 19 CFR 111.2, but it requires ACE access, a customs bond, and the classification and valuation expertise that a broker's license tests for. For an importer with a small number of product lines and steady volumes, that can be practical; for an importer facing frequent Chapter 99 changes on Chinese goods, it is a significant compliance load.

Broker fees are not set by any federal schedule; they are market-priced. Brokers commonly quote per entry, with additional charges for extra HTS lines, ISF filing and partner-agency filings. When comparing brokers, compare the structure of what is included, not a single headline number.

Questions that test a broker's fit, framed around what Part 111 requires and what China imports demand:

• Will the POA be signed directly between you and the licensed broker?
• Who reviews the classification, and will you see each entry summary, including the Chapter 99 lines, before or promptly after filing?
• How are duty payments handled: through the broker's account or by direct ACH from the importer?
• Is ISF filing included, and who is responsible for collecting the supplier's data in time?
• How does the broker handle a binding ruling request or a post-summary correction?

Common mistakes importers make with brokers

• Believing the broker is liable for misclassification. The importer of record is.
• Signing a POA with a forwarder rather than directly with the licensed broker.
• Never reading the entry summary. Classification, value and Chapter 99 lines should be reviewed, because an error repeats on every entry until someone catches it.
• Assuming a China-side agent can handle U.S. customs. Only a U.S.-licensed broker or the importer can file.
• Skipping ACH refund setup, which held up IEEPA refunds through CAPE in 2026.

Frequently asked questions

Sources

• ecfr.gov/current/title-19/chapter-I/part-111
• ecfr.gov/current/title-19/chapter-I/part-111/subpart-F
• ghy.com/trade-compliance/cbp-customs-user-fees-fy-2026/
• skadden.com/insights/publications/2026/03/tariff-refund-mechanism-takes-shape