Customhouse Broker

Summary of Customhouse Broker

A firm licensed by the U.S. Customs Service to act as the importer's agent in facilitating the clearance of goods through customs. In this capacity, the customhouse broker files all necessary documents with customs to ensure that the merchandise is expeditiously inspected by customs and that proper tariff classification is applied to the goods and correct duties and taxes are levied; the broker also makes payment for such levies on behalf of the importer.

In order for a customhouse broker to perform for a client, the principal must invest the broker with a power of attorney, which is filed with the Customs Service.

In the 1980s there were more than three thousand persons licensed as customhouse brokers in the United States. Many of these individuals are employed by brokerage firms operating in major port cities.

(Main Author: William J. Miller)