When it comes to importing in the global marketplace, diversification is almost always viewed as a net positive. You are encouraged to make use of multiple suppliers, multiple modes of transport, and multiple carriers to get your goods where they need to go in as varied and adaptable a manner as possible. Conventional wisdom suggests that the more options and avenues you maintain and the more relationships you court, the better off your business will be in the long run. 

That’s why we understand why it’s so tempting to see your Customs broker through the same lens. Why just have one Customs broker when, conceivably, more will provide you with greater insights and additional support? Particularly now, in the age of increased concerns over cyber attacks and natural disasters, some importers are tempted to hire ‘backup brokers’ should their primary providers be affected. 

However, take it from the 70-year industry experts—this almost always causes more trouble than it solves. Understanding why requires us to dig a bit deeper into how Customs and Border Protection (CBP) views businesses, what that institution is looking for when assessing an import, and what is expected of you as an importer into the US. 

What are the Responsibilities of an Importer?

One of the most important things to realize when assessing your responsibilities as an importer is that Customs views your business as a single entity, no matter how many different operatives, agents, or industries it utilizes. In the eyes of CBP, your tax identification number is the condensed version of your entire enterprise. 

When it comes to Customs, you, as the importer of record with that identification number, are responsible for a complete Customs declaration that includes HS classification, country of origin, proper valuation, and any other required information for importation. CBP is heavily concerned about the accuracy of these declarations and will conduct audits and impose penalties based on mistakes and incongruencies between the declaration and the shipment itself. As mentioned above, they are not overly concerned with the roads that brought you to these declarations in the first place. 

Accuracy in these declarations is the most crucial thing an importer can achieve at this stage because while it may be tempting to think that Customs brokers are the trade partners most responsible for maintaining this accuracy, it’s important to note that at the end of it all, the importer of record is entirely responsible in the eyes of Customs. That means that if your broker or their work is compromised in any way - it is very much your business that could be penalized.

Can I Use Multiple Customs Brokers?

You can, and some people do, even if they are not doing it with the full intention of having multiple brokers. But, for reasons that some of you may be ahead of us on, this practice needs a higher level of scrutiny from you as the importer of record.

A common way that importers lose sight of the fact they are using multiple brokers is when they are doing one-time or special imports using a freight service outside their norm. Importing a single shipment will require you to sign a POA with that carrier’s broker, but it is all too common for that broker to be of a different type to the one you are used to, and the attention to detail when it comes to compliance may be prioritized differently. 

The reality is that brokers are not all the same, and their focus and how they handle each import can be radically different. As previously discussed, CBP will not investigate why your shipments were declared incorrectly - it is sufficient that they are wrong, so increased diligence is necessary when dealing with multiple brokers. 

Hearing that, a prevalent question new importers have when discussing this subject is, “What are the different types of Customs brokers?” The answer to that is less about ‘type” and more about service focus. Expedience brokers are typically freight brokers that prioritize getting your goods from point A to point B as quickly as possible, with the actual brokerage often being the secondary priority. As you might expect, compliance-focused brokers are much more concerned with the strict adherence to Custom’s rules and regulations, even if it is to the detriment of speed. They both have their place, but you, as an importer, must be aware of what’s going on and take steps to ensure your goods are shipping compliantly if your broker isn’t.

Whether you are fully aware of it or not, using freight and lightweight courier services to ship items into the country will require a broker, and if they aren’t asking you questions about your import, then they may be out of sync with what you have come to expect. If you are only hearing from your secondary broker when it comes time to pay their invoice - it should be cause for concern.

What Else Can Go Wrong?

If there’s a key takeaway from this post, let it be this - CBP sees your entire enterprise as one business, and mistakes and applicable penalties are generally independent of the circumstances that led to them. In order to remain in the good graces of Customs, your aim should be consistency, regardless of mode or service provider. If you have more than one Customs broker, maintaining that consistency can be challenging. 

Using multiple brokers can go wrong in a few different ways in addition to type. For example, if you use two brokers, you’ll soon learn that there is a significant interpretive element to brokerage. Agreement is not always guaranteed when it comes to interpreting a rule or regulation for a particular import, and multiple brokers can often mean different declarations. Even if they are both technically correct, CBP will only see an inconsistent declaration - they are not going to waste time parsing out why. 

When dealing with expedient brokers, you’ll find that declarations are often made in the name of haste. Unfortunately, when some of your shipments have been incorrectly declared while trying to get them across the border quickly, your whole business could feel the impact. 

Despite all of this, having multiple brokers remains a common, if ill-advised, business practice. If you choose to go this route, our advice is two-fold.

1. Take extra steps to review declarations filed on your behalf for consistency between brokers. 
2. Be sure of the focus of the broker you decide to use. 

How Do I Select a Customs Broker? 

We appreciate that it may be tempting to align yourself with multiple brokers, but take it from people with over 70 years of industry experience— this leads to more work for you as you now have to monitor for consistency. 

In nearly all scenarios, you should go with a single Customs broker that focuses on compliance and stick with them for all your imports, and we’re not just saying that because that’s the kind of broker PCB is. As CBP continues to improve and develop monitoring strategies and technologies, it is imperative that importers focus on importing correctly, and doing that with a single compliance-focused broker is a fantastic way to make sure you remain in CBP’s good graces. 

Speak to one of our trade advisors today for more information about how we can help your business thrive as it trades internationally. Our Trade Advisory Services cover a wide range of different services, including assistance with tariff classification and valuation, and we can be invaluable as a partner in managing your global trade!