International shipping can be a minefield if you don’t know what you’re doing. That’s because every country has different rules about which products are allowed, how much fees cost, and which paperwork needs to be filled out.
Luckily, your international FedEx shipments include brokerage services. In this article, you’ll learn even more about FedEx’s brokerage services and how they can help speed up your next shipment, so keep reading to learn more!
What Is FedEx Broker in 2023?
FedEx’s international shipping services come with a customs brokerage called FedEx Broker-Inclusive in 2023. For international shipments with a declared customs value of less than $500,000 USD, FedEx defaults as the designated broker and facilitates clearance using its U.S. Customs and Border Protection (CBP) bond. Other services include duty and tax collection, protest preparation and filing, and more.
To get even more help navigating the world of international shipping, finish this article for more useful facts and tips!
What Is a Customs Broker?
Before answering any questions about whether FedEx uses brokers, it’s important to know what a broker is and what role they play in international shipping.
A broker, also known as a customs broker, is an expert that helps shippers with the customs clearance process for international shipments.
Mainly, these professionals fill out paperwork and make sure shippers follow all of the rules or regulations associated with cross-border trade.
Brokers can be private individuals, corporations, or other entities. All US-based brokers must be certified and accredited by the U.S. Custom and Border Protection (CBP).
Why Do I Need a Broker?
You’re not required to hire a broker when shipping internationally. However, if you choose not to use a broker, you’re responsible for knowing all of the rules and regulations.
As well, you’re responsible for submitting all of the shipping documents to CBP on your own and making sure the information you provide is accurate.
However, given the complex nature of international shipping, many businesses hire brokers to save time and avoid errors or charges.
Does FedEx Use Brokers?
FedEx’s international shipping services include customs brokerage, also known as FedEx Broker-Inclusive.
When you use a broker-inclusive service for international shipments with a declared customs value of less than $500,000 USD, FedEx defaults as the designated broker.
In addition, FedEx will facilitate clearance using its U.S. Customs and Border Protection (CBP) bond.
So, if you’re using the broker-inclusive option for shipments with a declared customs value exceeding $500,000, FedEx may continue to serve as the broker.
However, in this case, the shipments will be cleared under the importer’s CBP bond.
Although FedEx provides broker services, you also have the option of using your broker through the FedEx International Broker Select service.
That said, just be sure to specify that you’ll be using your broker before shipping; otherwise, FedEx will become the default broker.
What’s Included With FedEx’s Broker Services?
FedEx provides comprehensive brokerage services that include the following:
- Duty and tax calculation
- Customs bonds
- Protest preparation and filing
- Follow-up on liquidation issues
- Duty drawback system
- Trade Facilitation Solutions
How Do I Use FedEx’s Broker Services?
Before shipping, you should take the following steps to keep your shipment on track when it reaches customs:
1. Provide Power of Attorney
When using the FedEx broker-inclusive service, you must issue a Power of Attorney to FedEx for the company to provide services as your customs broker.
To start this process, download and complete the Power of Attorney form.
2. Establish a Bond with Customs and Border Patrol (CBP)
Based on your anticipated shipping frequency, you can arrange for single or continual use bonds.
For assistance arranging a CBP bond, send an email to firstname.lastname@example.org.
3. Understand Ancillary Fees
FedEx may charge an ancillary clearance service fee on international shipments for the following:
- Clearance processing
- Services requested by the shipper, recipient, or importer
- To recover costs passed to FedEx by the regulatory agency for filing
These service fees may be applied to either a US-based or a non-US-based shipper, recipient, or designated third party.
For more information about the fees that may apply to your shipment, select the destination country from the Ancillary Clearance Service Fees Assessed on the Import Shipments list.
How Much Is the FedEx Brokerage Fee?
A clearance entry fee is charged when FedEx arranges clearance services and a shipment is processed as a brokerage-inclusive shipment.
This fee is charged to cover the cost of checking the Commercial Invoice submitted with the shipment.
For Canada to US shipments, the fees are as follows:
- Clearance Entry Fee – $35.00
- Additional Commercial Invoices (After 1) – $5.00
- Additional Commercial Invoice Lines (After 5) – $1.00 each
FedEx’s clearance entry fee includes the following:
- Admissibility Review
- Compliance Review
- Delivery Order
- ACE Cargo Release
- Free-Trade Application
- Shipment/Event Tracking
- Duty and Tax Computation
- Preparation of Duty Payment
- Status Notification
- ABI Processing
- Liquidation Monitoring
- Entry Data Archiving
- ACE Entry Summary
- Images Online
Note that this $35.00 fee covers the most common paperwork required by CBP.
As well, additional fees may be applicable for things like Food and Drug Administration Reporting, additional bills of lading, and live entry/quota handling.
For US to Canada shipments, the clearance entry fee is $75.00 CAD and the Other Government Agency Fee is $7.50.
To see Clearance Services and Related Fees for shipments to other countries, check here.
If you do any amount of international shipping, then it’s worth learning more about FedEx’s brokerage services. Not only are these services affordable, but they’ll also save you the headache of trying to navigate international shipping on your own.