What is true about customs brokers?

• A. They are government employees who enforce tariff laws
• B. They handle only export shipments
• C. They are private individuals or firms licensed by Customs and Border Patrol (CBP) to prepare and file the necessary customs entries and arrange payments of duties
• D. They do not participate in customs matters

Answer: (C)

Customs brokers are private individuals or firms licensed by U.S. Customs and Border Protection to prepare and file customs entries and arrange payment of duties for shipments entering the United States. They act as the importer’s representative with CBP, handling the necessary paperwork, tariff classifications, valuation, country of origin, and duties to ensure goods clear properly and on time. They are not government employees; their authority comes from the license granted by CBP. While they can assist with export matters as well, their primary function is to facilitate import clearance, including filing the required entries and coordinating duty payments. That combination of private licensing by CBP and the specific duties of filing entries and arranging duties is what makes this description correct.