Customs legislation is highly technical and requires specialized expertise. Its dynamic nature and numerous grey areas necessitate constant monitoring of potential updates and changes, requiring each new situation or issue to be reevaluated and interpreted. For most companies engaged in foreign trade, hiring customs brokers/assistants or specialized personnel in every area of foreign trade is often not financially feasible. In this article, we will aim to explain, as clearly as possible, the performance criteria that should be considered during the selection process of a customs broker.

Most companies involved in foreign trade (except those that file their declarations through direct representation) work exclusively with customs brokers. Although some firms may also receive auditing and consulting services from independent audit firms, customs brokers are primarily responsible for the execution of foreign trade operations.

Given the complexity and diversity of customs legislation and operations, along with the direct involvement of customs brokers in these operations, the responsibility borne by customs brokers is significantly increased. The notion that customs brokerage services only involve the registration of declarations should be abandoned, and companies’ expectations of their customs brokers should be revised in light of this broader perspective.

Additionally, considering the high penalties involved in customs procedures, it becomes crucial to meticulously select the right customs broker.

From a company’s perspective, where cost and time are critical factors, knowing that they can receive all the services they may need in customs and foreign trade from a single source and work with a reliable partner who can provide accurate answers to all their questions is undoubtedly a highly preferred scenario.

So, what should the performance criteria be for customs brokerage firms? In other words, what should we expect from our customs broker? Let’s begin listing them.

1. Information Security: Ensuring data security is non-negotiable. Companies should inquire about the measures in place to safeguard their data, ask about the information security certifications obtained from accredited organizations, and request information regarding professional liability insurance. High-volume firms might even ask for a policy tailored specifically to them.

2. Digitalization: This is another critical factor. Using AI and robotic systems to draft declarations and conduct checks through electronic systems is one of the most essential aspects. Many firms claim their declarations are filled electronically. However, the key question to ask is how much of the necessary fields are being filled using AI and how the checks are being conducted.

3. Competency of Personnel Handling Customs Operations: While customs brokerage firms often boast about the number of brokers or assistants they employ, if your only point of contact during operations is a customer representative, there may be an issue. Instead of asking how many people work at the firm, you should inquire about who will handle your operations and what their experience is.

4. Employment of Specialized Personnel: Customs brokerage firms should employ specialized staff in areas such as TAREKS, tariff classification, origin, inward processing regimes, investment incentive certificates, government subsidies, and sectors like agriculture and food. Following these areas through electronic systems is also essential, and the effectiveness of these systems should be examined.

5. Accurate Information Sharing: It’s not enough to merely inform companies about regulatory changes. The right approach is to provide relevant updates that directly impact the company’s operations, along with an analysis of how the changes will affect them.

6. Analysis of Customs Valuation Elements: Customs brokers who can analyze the various elements included in customs valuation will stand out. This includes reviewing transfers to related or unrelated suppliers, analyzing international contracts, checking for royalty or licensing payments, and examining additional payments related to imported goods.

7. Support in Customs Disputes: Customs brokers must provide comprehensive and qualified support in objections, settlements, and litigation related to customs disputes. Meticulously prepared justifications, including all relevant regulations, are critical for favorable outcomes.

8. Response Time to Queries: If your inquiries take an excessive amount of time to be answered or if you have to repeatedly follow up, this signals a problem with the service.

9. Support Under the Authorized Economic Operator (AEO) and Other Facilitation Programs: It's essential to ask about the firm’s experience with supporting clients through these programs.

10. Training Programs: Does the customs brokerage firm offer training programs, such as basic or advanced customs and foreign trade training, or specific training tailored to the company's needs?

11. Boutique Service Approach: A customs broker should be able to evolve according to the client’s needs and offer customized services beyond basic requirements.

12. Customs Operation Reporting: Companies should regularly receive reports detailing the number of declarations registered, their processing times, clearance lanes used, additional duties, fines, and corrective actions taken.

13. Transition to a New Customs Broker: When a company's relationship with its customs broker ends, it should be able to access past operational data seamlessly. Therefore, it’s essential to start using any provided archive systems from the outset and ensure that they are user-friendly.

Lastly, it is crucial to remember that a power of attorney is never enough; a contract detailing the responsibilities of both the company and the broker should always be in place.

Choosing a customs brokerage firm that acts as a true solution partner, capable of addressing all potential customs needs in a streamlined and efficient manner, will ease operations, save time, and reduce costs.