The Difference between Freight Forwarder and Customs Broker

Logistics is doubtless a complex industry which involves multiple ports and transit destinations. Hence the contribution and collaboration of various agents, providers and people is required. Amongst many names of obvious contributors and collaborators are the freight forwarders and custom agents. These two names have been used interchangeably, thinking that they two perform the same task.  This couldn't be any surprising knowing that they both play important roles when it comes to ensuring the timely and most economical arrival of shipments.

Freight Forwarder Explained
Freight forwarders, also known as forwarding agents are connected with the supply chain and refer to the experts whose main concentration is on the physician transportation and shipment of the cargo. Any entity or parties involved in the exporting process is answerable to them. They also take charge of the assemble and completion of various required compliance and documentation filings. They are expected to understand the international requirements for shipping in various countries and regions, as well as have in-depth knowledge on international trade.In general, a freight forwarder can be likened to a cargo's travel agent, which in turn is responsible for setting up a trip, and then do all it takes, from paperwork to documentation, to facilitate the trip. This is of course all for a fee.

Customs Broker Explained
A customs agent or broker refers to a licensed individual or agency whose primary function is to assist importers and exporters in meeting the requirements of the government concerning imports and exports.Simply put, they serve as an intermediary between the customs department of the government and importer. This means that upon the arrival of the shipment, they clear and prepare the customs entry. This entails supervising examination of the goods at terminal with customs officers. And also facilitating the importer/exporter's ultimate custom release known as the Inspection act document.Their range of proficiency include expertise in procedures for entry, requirements for admissibility, valuation, classification, the duty rates and applicable taxes and fees associated with importing a merchandise. Also for a fee, brokers, on behalf of an importer, submits all appropriate payments, and necessary documents and information to the customs.

Telling the Difference
Even though the role of these two entities get to overlap, there still exist conspicuous differences between both.The term freight forwarder is wide-ranging, compared to the specific nature of customs broker's responsibilities. A customs broker requires special licensing, and is only limited to the import side of any export transaction. The freight forwarder on the other hand cover both the import and export side of any export transaction.While freight forwarders can be custom brokers or perform their services, not every customs broker can be a freight forwarder.

Conclusion
You now can tell the difference between these two key entities. Despite the difference, they have areas where they can converge in delivering their services.
At the end of the day, you want to have a good customs broker and freight forwarder or even a corporation that provides both of these services.With a logistics partner like Vagmon e-Grup& Logistics, shipping won't have to be a rigorous and difficult affair.