The Journey to becoming a US licensed Customs broker: What you need to know

Introduction

You might have loosely heard of the term Customs broker, but you most likely only possess a vague understanding of what a licensed Customs broker does.

Moreover, you probably don’t know what it takes to become a licensed Customs broker.

What are the basic requirements?

How much education must one have?

How many years in the industry must one possess?

How does one go about pursuing a Customs broker license?

In this article, I cover what a licensed Customs broker is, what the requirements are, and the journey to become one.

CBP is the governing body that oversees the importation of merchandise into the US.

What is a US licensed Customs broker?

In simplest terms, a US licensed Customs broker is an individual who is licensed by the United States government to assist individuals, importers or companies import their goods into the United States territory (including Washington D.C. and Puerto Rico).

Since US Customs laws pertaining to the import of goods are often complex and forever changing, a Customs broker is often needed to assist importers navigate the laws and complete paperwork necessary to meet federal regulations and to avoid penalties.

Technically, it isn’t required by law to use a Customs broker, however, many companies choose to hire one because of the potential cost savings, time savings, and avoiding product seizure and possible penalties and fines.

Customs brokers often work at third-party logistics companies, freight forwarders, Customs brokerages, shipping companies and some are self-employed, offering consulting and other trade and record keeping services.

Customs brokers help importers clear their shipments into the US.

What are the requirements to become a licensed Customs broker?

Unlike many other professions that require a certain number of years of education, training, and experience, becoming a US licensed Customs broker is fairly easy.

You don’t need to be working in the industry, but doing so certainly helps, and you don’t need to have a four-year college degree, though most trade compliance jobs require one.

Other than being able to pass an exam, here are the only other requirements.

• Must be a U.S. citizen

• Must be 18 to sit for the exam (21 to become licensed)

• Must not be a government employee.

See: www.cbp.gov

In sum, becoming a licensed Customs broker is as simple as passing an exam, sitting for an interview with the Port Director, and passing a federal background check.

There is only one caveat: The CBLE passing rate is quite low, averaging around 15% nationally.

All-about the licensed Customs broker exam

The Customs broker license exam (CBLE) is administered twice-a-year nationally, the fourth Wednesday in April and October.

The exam itself is administered by a third-party exam proctor and is usually held at a major port nearest you.

For example, since I am living in Southwest Florida, Tampa Bay and Miami are my closest ports, being roughly a 2.5 hour drive to either city.

The exam environment is different for each location and region but, generally, you will be sitting for the exam at a hotel conference room, an educational testing center, or a college campus testing environment.

Most likely you will be sitting at a long table with a laptop or a cubicle and a computer to take your exam.

The exam is 80-question, 4.5 hours, and is open book, meaning you can take any and all of your study materials with you for the duration of the exam.

The exam is based on the 19 Code of Federal Regulations, the Harmonized Tariff Schedule (HTS), as well as other Customs and Border Protection (CBP) material.

You are tested on topics including: duty-drawback, classification, valuation, broker compliance, penalties, record-keeping, free trade agreements, free trade zones, country of origin, intellectual property rights, entry process, etc.

The exam is more of a test of where to find information quicky and efficiently as possible as opposed to possessing a body of trade compliance knowledge.

The reason for such a low pass rate is because of the sheer amount of material to be familiar with, the tricky wording CBP often crafts their questions, and the imposed time-limit to be able to look up the exact information in a timely manner.

A 75% or above passing grade is required.

Post-exam process

If you scored 75% or higher, you passed!

Congratulations!

What's next?

After you receive your passing grade by CBP via email, you will need to submit your application along with a $100 processing fee and your fingerprints to the port director of the port where you wish to conduct Customs business.

In about a month, the port director will call you in for a 30-minute interview where he will ask a few "get to know" you questions to judge your character and to make sure everything checks out.

After your background check, your application will be sent and reviewed by an official CBP governing board in Washington, D.C.

From your initial interview to receiving your official Customs broker license by mail could take from six to eight months.

Should you pursue an LCB?

Possible salary increase, industry respect, and future job opportunities are the main reasons why most people decide to get their Customs broker license.

The job outlook for Customs broker is quite promising and the industry has been growing 5% every year since 2004.

One study suggests that by 2029 there will be more than 25,000 new jobs for Customs brokers.

In a globalized world where manufacturing, procurement, and design continue across borders at lightning speed, there will always be a need for those who can assist companies with their merchandise importation and shipments.

Conclusion

If you are interested in international trade, import-export and logistics then a career in trade compliance may be for you.

Obtaining your Customs broker license will only solidify your career path.

It signals to job recruiters and hiring managers that you possess a certain level of trade knowledge and are dedicated to the profession.

My Customs broker colleagues have been promoted faster, have taken on managerial roles, and are leading compliance departments at their respective companies.

Becoming a licensed Customs broker, when compared to other professional fields such as law, medicine, dentistry and the trades such as plumbing and electrical, is fairly easy.

You just need to make sure you qualify and be able to pass an exam, albeit a difficult one at that.

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