Customs brokers have an important role to play in the world of trade, assisting businesses around the world with the complex aspects of importing and exporting goods. However, these professionals are set to be in particularly high demand in 2025 as the global environment poses new challenges.
Therefore, it's vital that all enterprises working internationally understand what they have to offer and how best to manage these partners, especially when there are multiple companies involved.
Why do companies turn to customs brokers?
Customs brokers are often used by companies that have a relatively small volume of imports or exports. This means it may not be financially viable to invest in employees or software solutions dedicated to these areas. However, partnering with an expert broker who is familiar with local rules and regulations can be a practical and cost-effective way of ensuring firms are paying the correct duties and are in compliance with all customs requirements.
These partners can handle all necessary customs filing processes - whether on paper or via electronic customs platforms, leaving businesses free to focus on other areas.
However, this is far from the only situation in which brokers can be useful - especially in today's turbulent times. The current uncertainty in the trade world is making an already complex environment even more challenging as businesses struggle to keep up with an ever-changing tariff situation.
The impact of a changing environment
It's no surprise that many firms are turning to brokers to help them navigate this environment. Indeed, it was recently noted by the Detroit Free Press that firms are looking for help in identifying ways to lower or defer the amount of duties they have to pay when shipping goods to the US. These may include using foreign trade zones, entry consolidation programs, or diversifying suppliers.
Managing an ever-changing environment is also a consideration, especially in the US. For instance, CEO and founder of consultancy Trade Force Multiplier Cindy Allen told the publication that in the first two years of president Donald Trump's first term, there was a 300 percent increase in regulatory revisions and actions in this space.
This was comparable to the changes seen in the previous 20 years. However, Ms Allen said this could well have been surpassed in just six weeks since Mr Trump's second inauguration in January.
The advantages of broker management solutions
Expert advice and partners who can manage these challenges are a priority for many firms. However, one consequence of this may be that large importers and exporters end up working with multiple brokers around the world - especially if they're seeking to diversify their supply chains. Therefore, solutions to help manage this complexity will be necessary.
This is where tools such as broker management software come in. These allow firms to handle all aspects of their relationships from a single, central platform. This ensures data can be easily transferred between parties - including importers and exporters, suppliers, brokers and customs authorities - for greater efficiency and transparency.
Having full connectivity and visibility with brokers will be essential in a complex trading environment. This helps in managing the smooth flow of shipments around the world, enabling the fast and accurate payment of any owed duties and ensuring full records are kept in the event they are needed.