File the entry
The broker prepares and transmits the customs entry electronically through the Automated Commercial Environment, so the goods are released and cleared into U.S. commerce.
The licensed trade professional
What is a customs broker?
A customs broker is a private individual or company licensed and regulated by U.S. Customs and Border Protection to transact customs business on behalf of importers and exporters. In practice, the broker is the professional who clears your goods through CBP: filing the entry, classifying every item under the Harmonized Tariff Schedule, calculating the duties and fees, and standing between your company and the agency. A licensed broker is also the professional who files duty drawback claims to recover those duties when goods are later exported.
19 CFR 111The rules that license and govern brokers
10 to 30%Typical pass rate on the broker license exam
One professionAuthorized to file entries and drawback with CBP
The definition
A licensed intermediary between you and CBP.
Customs brokers are individuals, partnerships, associations, or corporations that CBP licenses under 19 CFR Part 111 to conduct customs business. Customs business means the activities that involve transactions with CBP: entry and admissibility of goods, classification, valuation, the payment of duties, taxes, and fees, and the refund or drawback of those amounts. It is a regulated profession because getting these things wrong carries real financial and legal consequences for the importer of record.
Classify the goods
Every item is assigned a code under the Harmonized Tariff Schedule. The classification sets the duty rate, so accuracy here drives what you pay and what you can recover.
Calculate duties and fees
The broker determines the duties, taxes, and fees owed, including the Merchandise Processing Fee and Harbor Maintenance Fee, and arranges payment to CBP.
Ensure compliance
Shipments often fall under partner government agencies such as the FDA, USDA, or EPA. The broker confirms each entry meets those requirements before it moves.
Advise on trade programs
Brokers guide importers through free trade agreements, foreign trade zones, and duty drawback, the programs that legally reduce or refund the cost of duty.
Represent you before CBP
From routine questions to audits, protests, and desk reviews, the licensed broker is authorized to act for the importer in dealings with the agency.
Becoming licensed
How you become a customs broker.
The license is not a registration. It is earned through an examination that most candidates do not pass on the first attempt, followed by a federal background investigation.
1
Meet the baseline requirements
An applicant for an individual license must be a citizen of the United States, at least 18 years old, and not a current federal employee. Permanent residents and visa holders are not eligible for an individual broker license.
2
Pass the Customs Broker License Examination
The CBLE is an open book exam of 80 multiple choice questions drawn from the customs regulations, the Harmonized Tariff Schedule, and CBP directives. A score of 75 percent is required to pass. It is offered twice a year, in April and October, and pass rates are typically between 10 and 30 percent, which is why the credential carries weight.
3
Clear the background investigation
After passing, the applicant submits a license application and CBP conducts a background investigation into character and fitness before the license is granted.
4
Maintain the license
A licensed broker must exercise responsible supervision and control over the customs business they conduct, hold the permits required to operate, and complete continuing education each triennial period to stay current on regulatory change. A company can also hold a broker license, but it must employ at least one individually licensed broker who provides that supervision and control.
A common confusion
Customs broker vs. freight forwarder.
The two roles are often used interchangeably, but they do different work. Many international shipments use both.
Customs broker
Clears cargo through customs. Files the entry, classifies the goods, calculates and pays the duties, and ensures compliance with CBP and partner agencies. Must be licensed by CBP. Represents the importer before the agency and files programs like duty drawback.
Freight forwarder
Moves the cargo. Arranges transportation and logistics from origin to destination across ocean, air, and ground, books space, and manages the shipping documentation. No federal license is required to operate as a forwarder.
Why it matters for recovery
Only a licensed broker files your drawback.
Duty drawback refunds up to 99 percent of the duties, taxes, and fees you paid at import when the goods are later exported or destroyed. Claims are filed electronically with CBP, and the professional authorized to prepare and file them, and to defend them on audit, is a licensed customs broker. That is where the license stops being a formality and starts protecting real money.
Alliance Drawback Services is a licensed U.S. Customs broker that does one thing: duty drawback. Founder and CEO Anthony Nogueras is a Licensed Customs Broker with decades in the trade, and the firm carries the credential, the software, and the compliance discipline that recovering duty at scale requires. We confirm your eligibility, validate the data, match imports to exports, file the claim, and stand up the audit defense, so the recovery happens without the burden landing on your team.
Common questions
Customs brokers: FAQ.
What is a customs broker?
A private individual or company licensed and regulated by CBP under 19 CFR Part 111 to transact customs business for importers and exporters. Brokers file entries in ACE, classify goods under the HTS, calculate and pay duties and fees, ensure compliance, represent the importer before CBP, and file duty drawback claims.
Do I legally need a customs broker to import?
No. An importer may file its own entries. In practice most companies use a broker because classification, valuation, and compliance are complex and errors are costly. For duty drawback specifically, the claim is prepared and filed by a licensed broker or a self-filing importer with ABI access and drawback software.
How hard is the customs broker exam?
It is a demanding open book exam of 80 questions requiring a 75 percent score to pass, and pass rates are typically between 10 and 30 percent. The difficulty is why a licensed broker is a meaningful credential rather than a registration.
Is a customs broker the same as a freight forwarder?
No. A freight forwarder arranges transportation and logistics, while a customs broker clears the cargo through customs and must be licensed by CBP. Many shipments use both, and some providers offer both services.
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Work with a licensed drawback broker.
If your company imports and exports, a licensed customs broker can recover the duty you have already paid. We identify the refund potential in your history and run the entire program end to end.