A licensed customs broker is an individual or company authorized by U.S. Customs and Border Protection to conduct customs business on behalf of importers. To become licensed, a broker must pass a rigorous federal examination covering tariff law, trade regulations, and customs procedures. There are approximately 14,454 licensed customs brokers in the United States.
CBP administers the customs broker license exam twice per year — in April and October. It covers 80 questions over 4.5 hours, testing knowledge of the Harmonized Tariff Schedule, customs regulations (19 CFR), trade agreements, valuation methods, and entry procedures. The average pass rate across exam cycles is approximately 15%, making it one of the most difficult professional licensing exams in the United States.
Passing the exam is not sufficient to receive a license. CBP conducts a thorough background investigation that includes criminal history checks, credit checks, and character reference interviews. Applicants must demonstrate that they possess the moral character necessary to serve as a fiduciary for importers and handle sensitive trade data.
Licensed customs brokers must file status reports with CBP every three years, confirming that they remain active, solvent, and in compliance with all regulatory requirements. Brokers who fail to file are subject to license suspension or revocation. This ongoing oversight ensures that licensed brokers maintain their qualifications throughout their careers.
There are two types of customs broker licenses: individual and organizational. An individual license is held by a person who has passed the exam and completed the background check. An organizational license (also called a corporate license) allows a company to conduct customs business, but the organization must employ at least one individually licensed broker who supervises customs activities.
Only a licensed customs broker (or the importer themselves) can file customs entries with CBP. Unlicensed individuals and companies who prepare or file entries on behalf of importers are violating federal law. When you work with a licensed broker, you know that your entries are being filed by someone with the legal authority to do so.
Licensed brokers are subject to CBP oversight under 19 CFR Part 111. CBP can audit a broker's records, investigate complaints, and take disciplinary action including fines, license suspension, or permanent revocation. This regulatory framework gives importers a formal recourse mechanism that does not exist with unlicensed service providers.
Part 111 of the Code of Federal Regulations establishes the duties, responsibilities, and standards of conduct for licensed customs brokers. Brokers must exercise "responsible supervision and control" over their customs business, maintain accurate records, and report certain activities to CBP. These obligations create a baseline of professional conduct.
Most licensed customs brokers carry errors and omissions (E&O) insurance, which provides financial protection if a broker's mistake causes a client to incur penalties, duties, or other losses. While not universally mandated by federal law, E&O coverage is a standard practice among professional brokerages and a sign of a broker that takes accountability seriously.
A licensed customs broker has a fiduciary duty to act in the best interest of their client. This means the broker must prioritize your compliance and financial interests over their own convenience. It also means the broker cannot disclose your confidential business information without authorization — a protection that does not extend to unlicensed service providers.
Licensed brokers face personal and organizational penalties for filing errors, including monetary fines and license suspension. This penalty exposure aligns the broker's incentives with yours: they have a direct financial stake in getting your filings right. Unlicensed intermediaries face no such consequences, which means they have less skin in the game when it comes to accuracy.
Freight forwarders coordinate the transportation of goods from origin to destination. They manage shipping, warehousing, and logistics — but they are not authorized to file customs entries unless they also hold a customs broker license. Many freight forwarders subcontract customs brokerage to a licensed broker, adding a layer of cost and removing your direct relationship with the party filing your entries. If you are working with a freight forwarder who claims to handle customs, ask whether they hold their own broker license or subcontract the work.
3PLs provide warehousing, fulfillment, and distribution services. Some 3PLs offer "customs brokerage" as part of their service bundle, but the actual customs work is almost always performed by a subcontracted licensed broker. This arrangement can work, but it means you have no direct control over who is filing your entries, how they classify your products, or how they respond to CBP inquiries. For importers with complex compliance needs, this indirect relationship creates unnecessary risk.
Trade consultants advise on supply chain strategy, tariff engineering, and trade agreement qualification. They can provide valuable strategic guidance, but they cannot file customs entries. A consultant might recommend a classification strategy, but a licensed broker is the one who implements it in the actual customs filing. Both roles have value — but they are not interchangeable.
When an unlicensed intermediary subcontracts customs brokerage to a licensed broker, you typically pay more than if you worked with the broker directly. The intermediary adds their margin on top of the broker's fees. You also lose transparency: you may not know what the broker charges, how they classify your goods, or whether they have the industry expertise your products require. Direct engagement with a licensed broker eliminates this markup and gives you full visibility. See what customs brokerage actually costs.
Customs compliance varies dramatically by industry. A broker who specializes in FDA-regulated products understands prior notice requirements, FSVP compliance, and import alert monitoring. A broker focused on USMCA knows rules of origin calculations and regional value content thresholds. Ask your broker what industries they serve and how many entries they file in your product category. Generalist brokers can file entries for anything — but specialists catch the compliance issues that generalists miss. Read the broker evaluation guide for food importers for a concrete example of what specialization looks like.
Modern customs brokerage requires technology: ACE portal integration, automated entry filing, real-time status tracking, and electronic document management. Ask your broker what systems they use, whether you will have portal access to view your entries, and how they communicate filing status. Brokers who still rely on email chains and spreadsheets are operating with 20-year-old workflows.
Customs broker pricing is notoriously opaque. Many brokers charge per-line-item fees, minimum monthly charges, PGA surcharges, and various administrative fees that make it nearly impossible to predict your monthly costs. Look for brokers who offer transparent, flat-rate pricing. Greenwich Mercantile charges $100 per filing — any product, any size, any origin country, no hidden fees.
CBP conducts focused assessments and compliance audits on importers of all sizes. When you receive a CBP audit notice, your broker should be your first call. Ask prospective brokers about their audit support experience: how many audits have they supported, what was the outcome, and how do they prepare clients for CBP scrutiny. A broker who has never supported an audit is a broker who will be learning on your dime when one arrives. If you are evaluating whether you even need a broker, audit support alone often justifies the cost.
CBP maintains an online broker lookup tool that allows you to verify any broker's license status. You can search by broker name, license number, or location. Verify that the license shows "active" status and that the broker holds a permit for your port district. You can also request a broker's license number directly — any legitimate broker will provide it without hesitation.
Yes, an importer can file their own customs entries directly with CBP. However, most importers choose to use a licensed customs broker because of the complexity involved: tariff classification, valuation, trade agreement qualification, and compliance with participating government agencies. Filing errors can result in penalties, delays, and seizures. For companies importing more than a few shipments per year, the cost of a broker is typically far less than the cost of a compliance mistake.
The customs broker license exam has an average pass rate of approximately 15%. The exam covers tariff law, customs regulations, trade agreements, valuation, classification, and entry procedures. It is administered by CBP twice per year — in April and October — and consists of 80 multiple-choice questions that must be completed in 4.5 hours. The low pass rate reflects the depth of knowledge required to competently handle customs business.
Yes. Greenwich Mercantile is a licensed U.S. customs broker authorized by CBP to conduct customs business on behalf of importers. We file customs entries at a flat rate of $100 per filing — any product, any size, any origin country. Our team handles tariff classification, duty payment, compliance monitoring, and coordination with participating government agencies including FDA, USDA, EPA, and CPSC.
Book a free 30-minute consultation. We will review your current import setup and show you exactly where a licensed broker can reduce your compliance risk and duty costs.
Book a Free Consultation