Like all specialties in logistics there are often blurred lines between disciplines but there are key differences between Freight Forwarders and Customs Brokers that are important to understand.
Photo by Glyn Lowe
Freight Forwarders focus on the movement of cargo from one country to another by either sea or air serving as a middleman between the shipping lines and air freight companies helping the importer/exporter to book space and to receive and load cargo. Freight forwarders also specialize in advising importers/exporters on freight costs, port charges, consular fees, costs of special documentation, insurance costs, and handling fees.
Customs Brokers on the other hand traditionally serve as agents of the importers/exporters providing their expertise in the clearance or “clearing” of goods through international customs checkpoints. As you can imagine customs clearance is a very technical and high regulated activity focusing on the entry and admissibility of merchandise; its classification and valuation; the payment of duties, taxes, or other charges assessed; or the refund, rebate, or drawback thereof.
It’s also important to understand that there are also firms which offer both freight forwarding and customs brokerage services. In these cases, these firms will typically have completely separate team/departments handling these activities due to the differences in the skill sets and expertise needed.