Quick Answer
A customs broker is a business that, on behalf of importers and exporters, handles customs declarations, duty payment and other clearance formalities. Under Article 22 of Taiwan’s Customs Act, declaration and duty formalities may be entrusted to a customs broker; declarations submitted to customs must be reviewed and signed by a certified customs specialist; and a broker must be approved by customs before registering its business and applying for a brokerage license. A broker’s main job is to file declarations from the shipment data, confirm the tariff classification, help pay duties and assist with inspections so goods are released smoothly.
What Does a Customs Broker Do?
- Files import and export declarations based on the commercial invoice, packing list, bill of lading and other documents.
- Confirms the tariff classification, which determines the duty rate and import/export rules; see What Is an HS Code?
- Helps pay duties and taxes, such as customs duty and import business tax (VAT).
- Assists with customs inspections of documents or goods.
- Handles special clearance, for example triangular trade transshipments in Taiwan, which require import and export declarations to be filed together (Customs Administration rule); see What Is Triangular Trade?
Customs Broker vs Freight Forwarder
| Comparison | Customs broker | Freight forwarder |
|---|---|---|
| Core work | Clearance: declarations, classification, duties, inspections | Transport: booking, arranging carriage, consolidation, house bills of lading |
| Legal basis in Taiwan | Customs Act, Article 22 | Shipping Act (ocean freight forwarder), Civil Aviation Act (air freight forwarder) |
| Required? | You may declare yourself or appoint a broker | You may book directly with a carrier or use a forwarder |
In practice, many companies offer both services. For more on forwarders, see What Is a Freight Forwarder?
Import Clearance Process
- Goods arrive; obtain the arrival notice and bill of lading (or telex release) details.
- Prepare documents: commercial invoice, packing list, bill of lading, certificate of origin, inspection or permit documents.
- The broker confirms the tariff classification and submits the import declaration.
- Customs reviews and, if needed, inspects documents or goods.
- Duties and taxes are paid.
- Goods are released and collected.
Food imports into Taiwan also require a border inspection application under Article 30 of the Act Governing Food Safety and Sanitation; see What Is an Import Agent Service?
Export Clearance Process
- Book space and obtain the shipping order (S/O) details.
- Prepare the commercial invoice, packing list and any required permits or certificates.
- The broker submits the export declaration.
- Customs reviews and inspects.
- Goods are released and loaded onto the vessel (or aircraft).
- Obtain the bill of lading and export documents.
How Do Customs Brokers Charge?
Typical items include a declaration fee, documentation fee and inspection assistance fee. They vary with the goods, number of declarations and scope of service, so ask the broker for an itemized quote before appointing them.
How Tang Sugar Can Help
In export and multilateral trade, Tang Sugar coordinates manufacturers, logistics companies, customs brokers and end buyers, managing commercial invoices, packing lists and bills of lading so clearance runs smoothly. For help, contact us or learn about our triangular and multilateral trade service.
FAQ
What does a customs broker do?
On behalf of importers and exporters, a customs broker files declarations, confirms tariff classification, pays duties and taxes and assists with inspections so goods clear customs smoothly.
Do I have to use a customs broker in Taiwan?
Article 22 of the Customs Act says declaration and duty formalities “may” be entrusted to a broker, so it is optional, but in practice most companies use a professional broker.
What qualifications does a customs broker need in Taiwan?
Under Article 22 of the Customs Act, a broker must be approved by customs before registering its business and applying for a brokerage license, and declarations must be reviewed and signed by a certified customs specialist.
Is a customs broker the same as a freight forwarder?
No. A customs broker handles clearance; a freight forwarder arranges transport, such as booking, consolidation and issuing house bills of lading.
What fees does a customs broker charge?
Commonly a declaration fee, documentation fee and inspection assistance fee, varying with the goods, number of declarations and scope of service. Ask for an itemized quote first.
How should I choose a customs broker for food imports?
Food imports into Taiwan need a Food and Drug Administration border inspection on top of normal clearance, so choose a broker familiar with food inspection and its documents, and confirm the quote clearly lists declaration and inspection-related fees. Many brokers also arrange transport; see What Is a Freight Forwarder?
Further Reading
- What Is a Freight Forwarder?
- International Trade Documents Explained
- What Is an HS Code?
- How Is Import Duty Calculated?
Sources
- Laws & Regulations Database of Taiwan: Customs Act (Article 22)
- Customs Administration, Ministry of Finance: Triangular trade (in Chinese)
- Laws & Regulations Database of Taiwan: Act Governing Food Safety and Sanitation (Article 30)
