‘If you really look closely, most overnight successes took a long time.’- Steve Jobs.
International trade is one of the hot-selling business ideas these days. It opens horizons for entrepreneurs to expand their reach and grow their businesses. According to Global Edge, Canada stands at 12th rank in the exporter trade list and 13th in the importer list. People are now using different strategies to benefit their businesses. One of these is working with suitable customs brokers.
You can work with the government’s customs department to ease the transportation of goods. But, having a licensed broker can benefit your business in many ways. This article mentions information on how you can grow your start-up by working with a valid customs broker.
What is a customs broker?
It is a company or an individual that acts as a bridge between your company and the country’s customs department. Each country has several regulations for the transportation of goods and services.
The brokers must get a government license to operate and assist companies. They must follow the state’s regulations. Besides, they are answerable for any lags in the import and export of products.
These brokers are responsible for helping start-ups and experienced businesses in the following:
- Deal with the port authorities and government on your behalf
- Complete the documentation for clearance, valuation, and entry process
- To educate you on tariff classifications for a better understanding.
- Handle all the freight management
- Calculate duty rates and taxes
So, connecting with customs brokers, especially for start-ups, is helpful. It can ease the transportation and documentation for you.
How a Customs Broker Helps Your Business
1. Get advice on the requirements
When you enter the import-export industry, you share your goods and services in many countries. Each country has its rules for documentation. The government keeps making changes keeping in view the security of their country. Thus, a broker will keep you updated with the requirements of specific countries.
In simple words, they represent your business and handle the regulations. Besides, they calculate your company’s dependable customs brokerage, taxes, and other trade transactions. You can rest assured because they also make the payments on your behalf and settle the bills with you later.
2. Avoid unnecessary delays
One major mistake in the export-import business is spending money on penalties and extra storage costs because of a lack of knowledge. As the rules and regulations change swiftly, it can be difficult for you to handle everything alone.
Failing to follow even the most minor requirement for documentation can lead to confiscation of your goods. Thus, you may have to pay additional money to bail it out. So, having a professional broker with you can help you avoid unnecessary delays and penalties.
3. Improve the delivery efficiency
Staying updated with the latest rules is one of the best ways to grow your business. The more mistakes you make, the more it impacts your company’s image. You would want to create an effective supply chain to satisfy your clients.
And the most straightforward technique is to speak with an experienced broker. It will help increase delivery efficiency by connecting you with warehouses and logistics services. Nobody knows the industry better than a broker. So, when you find the right broker, your business can skyrocket.
4. Appropriately identify your goods and services
Customs departments in every country have different categories of goods and services. It is not a common list; hence, there are chances of a product to be in one class in a country but be a restricted product in the other country.
Putting a product in the wrong category can lead to unnecessary delays and penalties. The authorities put such shipments on hold. Later, run a complete investigation to clarify their doubt. It can be financially draining for your company. So, a broker can help you identify the goods appropriately; thus, document them rightly. You need to produce a valid license for trading certain goods. A broker helps in completing the paperwork and receiving the permit.
5. Help with the customs declaration
A customs declaration certificate includes information about the legality of the goods. It is essential to sign and provide this contract at the country’s borders. The company agrees to the absence of any harmful or bound products in the shipment. The document contains legal terms that may be difficult to understand; a broker can help you comprehend them. In addition, you can make the required changes in your shipment to prevent the department from confiscating it.
Hiring a professional broker for dealing with the customs department is a must-do for start-ups in the export-import industry. Their experience and skills will help you go through the inspection process quickly at the lowest possible cost.