How to Choose a Customs Broker: 10 Questions to Ask Before Hiring
Don't hire the first broker you find. Ask these critical questions to evaluate expertise, pricing, technology, and service quality. Plus: red flags that mean "run away."
TL;DR — Quick Checklist
The 10 Must-Ask Questions:
- 1. Are you a licensed customs broker? (Verify CBP license)
- 2. Do you specialize in my industry/product type?
- 3. What's your total fee including all charges? (Get itemized quote)
- 4. How do you communicate updates? (Portal, email, phone?)
- 5. What's your average clearance time by port?
- 6. Who will be my main point of contact?
- 7. What happens if you make an error? (E&O insurance?)
- 8. Can you provide 2-3 references?
- 9. What technology/client portal do you use?
- 10. What are your contract terms and cancellation policy?
Bottom line: Get quotes from 3-5 brokers, verify licenses, check references, and choose based on specialization + service quality, not just lowest price.
Why Choosing the Right Broker Matters
A bad customs broker can cost you thousands in penalties, delays, and lost sales. Late filings = $5,000 ISF penalties. Wrong HTS codes = overpaid duties you'll never get back. Slow clearance = demurrage charges piling up daily.
A great customs broker, on the other hand, is invisible. Your cargo clears on time, every time. No surprises. No stress. You barely think about customs because it just works.
⚠️ The Cost of a Bad Broker
- • Late ISF filing: $5,000 penalty per violation
- • Wrong HTS classification: Overpay duties by 10-30%+
- • Slow clearance: $100-300/day demurrage
- • Missed product launch: Lost revenue (priceless)
- • CBP audit triggered by sloppy filings: $10,000+ in legal fees
This guide will help you ask the right questions, spot red flags, and choose a broker who becomes a strategic partner, not a liability.
Question 1: Are You a Licensed Customs Broker?
This seems obvious, but you'd be surprised. Some "freight forwarders" claim to handle customs but aren't licensed brokers. Only licensed customs brokers can legally file entries with CBP.
✓ How to Verify
- 1. Ask for their CBP broker license number
- 2. Search the CBP.gov broker database
- 3. Check NCBFAA membership (optional but good sign)
- 4. Verify license is active and not suspended
🚩 Red Flag:
If they say "we work with a broker partner" or can't immediately provide a license number, walk away. You want direct relationship with the licensed broker, not a middleman adding markup.
Question 2: Do You Specialize in My Industry or Product Type?
Generic brokers handle everything. Specialized brokers know your product category inside-out: HTS codes, PGA requirements, common exam triggers, tariff classifications.
Why Specialization Matters
Apparel/Fashion
Textile visas, Section 204 requirements, Chapter 98 temporary imports for samples, high-duty-rate optimization
Electronics
FCC DoC filings, CPSC safety testing, Section 301 tariff exemptions, lithium battery regulations
Food/Supplements
FDA Prior Notice, PN+, FSVP compliance, USDA APHIS for animal products, accurate labeling review
Machinery/Industrial
Complex HTS classification, Section 301 exclusions, temporary import bonds (TIBs), in-bond movements
✅ What to Ask:
- • "What percentage of your clients import [your product type]?"
- • "Can you name 3 clients in my industry?" (for references)
- • "What PGA filings are required for my product?"
- • "What's the typical duty rate for my HTS code?"
Question 3: What's Your Total Fee Including All Charges?
Never accept a vague answer. Get an itemized quote showing:
| Fee Type | Who Gets It | Typical Amount |
|---|---|---|
| Broker Fee | Broker | $35-175 per entry |
| MPF | CBP (government) | $31.67-614.35 |
| HMF | CBP (government) | 0.125% of value |
| Duties | CBP (government) | 0-37.5%+ of value |
| Continuous Bond | Surety company | $400-800/year |
🚩 Hidden Fee Red Flags:
- • "Per line item" charges ($10-25 per additional line)
- • Monthly minimums or setup fees
- • "Document review" fees (shouldn't be separate)
- • Rush processing surcharges for standard service
- • Separate fees for email/portal updates
Question 4: How Do You Communicate Updates?
In 2025, you should NOT be chasing your broker for updates. Modern brokers use:
✓ Good: Modern Communication
- • Client portal with real-time entry status
- • Automated email notifications (filed, released, etc.)
- • Dedicated email/Slack for quick questions
- • Mobile-friendly tracking
- • API integration for high-volume clients
✗ Bad: Legacy Communication
- • Phone calls only (no portal)
- • Fax machine for documents
- • "Call us for status updates"
- • Shared email (no dedicated contact)
- • 24-48 hour response times
💡 Test Their Response Time
Send an initial inquiry. Good brokers respond within 4-8 hours. If it takes 2-3 days to get a quote, imagine how slow clearance will be.
Question 5: What's Your Average Clearance Time by Port?
Ask for specific data, not vague promises. Professional brokers track clearance metrics.
What to Ask:
- • "What's your average clearance time at [your port] for shipments like mine?"
- • "What percentage of your entries clear in under 24 hours?"
- • "How often do your clients' cargo get selected for exam?" (should be 5-15%)
- • "What's your fastest recent clearance time?"
⚠️ Realistic Expectations
No broker can guarantee specific clearance times—CBP controls that. But brokers who file complete, accurate entries pre-arrival see faster average clearance.
Typical: 12-36 hours for ocean, 6-14 hours for air (no exam). If broker says "2-3 days is normal," they're slow.
Question 6: Who Will Be My Main Point of Contact?
Large brokers often assign you to a "team" with no dedicated contact. You email a generic inbox and get random responses. This is terrible service.
✅ What You Want:
- • Dedicated account manager (for 100+ entries/month)
- • Primary contact person with backup for vacations
- • Direct email/phone to your contact
- • Same person handling your entries consistently
🚩 Red Flag:
"You'll work with our team" = No accountability. One person should know your business, products, and common issues. Generic team inbox = slow, impersonal service.
Question 7: What Happens If You Make an Error?
Even good brokers make mistakes. The question is: who pays when it happens?
What to Ask:
- • "Do you have Errors & Omissions (E&O) insurance?" (They should)
- • "If you file a late ISF, who pays the $5,000 penalty?"
- • "If you use the wrong HTS code and I overpay duties, can you get a refund?"
- • "What's your process for fixing errors quickly?"
✅ Good Answer:
"We have E&O insurance. If we make a filing error that results in a penalty, we'll work with you to resolve it and may cover costs depending on circumstances."
🚩 Bad Answer:
"We're not responsible for penalties" or "Read the fine print in our POA—we're not liable." Run.
Question 8: Can You Provide 2-3 References?
Established brokers have happy clients who'll vouch for them. If they can't provide references, that's a massive red flag.
What to Ask References:
- • "How long have you worked with this broker?"
- • "What's their average response time?"
- • "Have they ever made a costly error? How did they handle it?"
- • "Would you recommend them to a competitor?" (ultimate test)
- • "What's one thing you wish they did better?"
💡 Also Check:
- • Google reviews (look for patterns, not one-off complaints)
- • Better Business Bureau rating
- • LinkedIn testimonials/recommendations
Question 9: What Technology & Client Portal Do You Use?
Technology = efficiency. Brokers using modern systems file faster, make fewer errors, and provide better visibility.
| Feature | Modern Broker | Legacy Broker |
|---|---|---|
| Entry Status | ✓ Real-time portal | ✗ Call for updates |
| Document Upload | ✓ Secure portal/email | ✗ Fax or snail mail |
| Invoice Access | ✓ Online, downloadable | ✗ Mailed PDFs |
| Mobile Access | ✓ Mobile-friendly | ✗ Desktop-only |
| API Integration | ✓ Available for high volume | ✗ Not available |
⚠️ Ask for a Demo
Request to see their portal before signing up. If they can't show you or it looks like it's from 2005, that's your answer.
Question 10: What Are Your Contract Terms & Cancellation Policy?
Read the Power of Attorney (POA) and service agreement carefully. Some brokers lock you in.
✅ Fair Contract Terms:
- • No long-term commitment (month-to-month)
- • Cancel with 30 days notice
- • Clear fee schedule in writing
- • No penalties for switching brokers
- • Revoke POA anytime
🚩 Contract Red Flags:
- • 1-year minimum commitment
- • Auto-renewal clauses (buried in fine print)
- • Early termination fees
- • Vague fee language ("subject to change")
- • Mandatory arbitration in weird jurisdiction
💡 Pro Tip: Test Them First
Start with 1-2 test shipments before committing to high volume. See how they perform when nothing's at stake. Good brokers welcome this.
Major Red Flags: When to Walk Away Immediately
🚩 Can't Provide CBP License Number
Unlicensed "brokers" are illegal. Period.
🚩 Vague or Changing Pricing
"We'll figure out the fee after clearance" = you'll get surprise bills.
🚩 No References or Reviews
Established brokers have happy clients. New brokers = training on your dime.
🚩 Pressure Tactics
"Sign today or price goes up" = desperation, not confidence.
🚩 Slow Response to Initial Inquiry
If it takes 3+ days to get a quote, imagine clearance delays.
🚩 Promises Guarantees
"We guarantee 12-hour clearance every time" = lying. CBP controls timing, not brokers.
🚩 No E&O Insurance
If they mess up and won't take responsibility, you're stuck with penalties.
Broker Comparison Checklist (Download & Print)
| Criteria | Broker A | Broker B | Broker C |
|---|---|---|---|
| CBP License Verified? | ☐ | ☐ | ☐ |
| Specializes in My Industry? | ☐ | ☐ | ☐ |
| Itemized Pricing Provided? | ☐ | ☐ | ☐ |
| Has Client Portal? | ☐ | ☐ | ☐ |
| Provided References? | ☐ | ☐ | ☐ |
| Has E&O Insurance? | ☐ | ☐ | ☐ |
| Responded Within 24 Hours? | ☐ | ☐ | ☐ |
| Fair Contract Terms? | ☐ | ☐ | ☐ |
| TOTAL SCORE: | ___ / 8 | ___ / 8 | ___ / 8 |
Ready to Work With a Broker You Can Trust?
Licensed customs broker since 2019. Transparent pricing. Modern technology. Specialized in e-commerce and retail brands. Let's talk.