CUSTOMS BROKER SALARY

CUSTOMS BROKER SALARY
CUSTOMS BROKER SALARY

Customs brokers are licensed business professionals who help importers file proper documents and meet legal requirements for goods and shipments entering or leaving the United States. Customs and Border Protection, or CBP, grants customs broker licenses to qualified applicants who pass a written exam and demonstrate good moral character. Because customs brokerage specialist positions carry significant responsibility and necessitate knowledge of complex laws and regulations; customs brokers typically earn high pay even without a college degree. So, what is the salary of a licensed customs broker in New York, US, and Los Angeles, CA? Let’s find out below.

US Customs Broker Salary

According to the United States Bureau of Labor Statistics, or BLS, the median annual salary for compliance officers such as customs brokers in 2020 was $71,100, with an hourly wage of $34.18. An entry-level customs broker position, such as an import specialist, may only pay around $40,160 per year.

Entry-level jobs typically do not necessitate a college degree or extensive work experience. Experienced customs brokers with management positions in logistics or purchasing can earn up to $115,220 per year. Customs brokers with college degrees are more likely to be offered higher-level positions.

Licensed Customs Broker Salary

As of September 1, 2022, the average annual salary for a licensed customs broker in the United States was $70,005. In case you need a quick salary calculator, that works out to about $33.66 per hour. This equates to $1,346 per week or $5,833 per month.

While ZipRecruiter reports annual salaries as high as $94,000 and as low as $39,000, the majority of licensed customs brokers’ salaries in the United States currently range between $62,500 (25th percentile) and $79,000 (75th percentile), with top earners (90th percentile) making $85,500.

The average salary range for a licensed customs broker in the United States varies greatly (by up to $16,500), implying that there may be numerous opportunities for advancement and increased pay based on skill level, location, and years of experience.

Customs Broker Salary New York

The average annual salary for a licensed customs broker in New York City is $76,510 as of September 1, 2022. In case you need a quick salary calculator, that works out to about $36.78 per hour. This equates to $1,471 per week or $6,375 per month.

While ZipRecruiter reports salaries as high as $102,750 and as low as $42,630, the majority salary of a licensed customs broker in New York City currently ranges between $68,317 (25th percentile) and $86,353 (75th percentile), with top earners (90th percentile) making $93,458 annually.

The average salary range for a licensed customs broker in New York City varies greatly (up to $18,036), implying that there may be numerous opportunities for advancement and increased pay based on skill level, location, and years of experience.

Customs Broker Salary Los Angeles

The average annual salary for a licensed customs broker in Los Angeles is $67,987 as of September 1, 2022. In case you need a quick salary calculator, that works out to about $32.69 per hour. This equates to $1,307 per week or $5,665 per month.

While ZipRecruiter reports salaries as high as $98,897 and as low as $41,032, the majority of Licensed Customs Broker salaries in Los Angeles currently range between $65,756 (25th percentile) and $83,116 (75th percentile), with top earners (90th percentile) earning $89,954 annually.

The average salary range for a Licensed Customs Broker in Los Angeles varies greatly (up to $17,360), implying that there may be numerous opportunities for advancement and increased pay based on level, location, and years of experience.

Customs Broker Skill Requirements

A customs broker’s job necessitates meticulous attention to detail when preparing import and export documents according to government rules and regulations. When calculating duty taxes and tariffs, customs brokers must be precise. When deciding whether to clear goods through customs, critical thinking and analytical skills are essential. Communication skills are required to assist customers in comprehending export restrictions, tariffs, and quotas.

Customs Broker Risks

US Customs and Border Protection requires all customs brokers to take reasonable precautions to ensure that all import transactions are accurate and compliant with US laws and regulations. Errors in data entry or documentation may subject shipments to time-consuming customs examinations or result in penalties for the importer and customs broker. If a customs broker knowingly violates import regulations, Customs and Border Protection may levy a fine of up to $30,000 or revoke the broker’s license.

To keep their licenses active, customs brokers must remember to file their triennial reports with fees on time. Customs and Border Protection can fine brokers up to $10,000 per transaction if they intentionally conduct customs business for someone other than themselves.

Trends in Customs Broker Specialist Growth

Customs brokers play an important role in an expanding global business environment. According to the Occupational Information Network, 337,600 people worked in this field in 2019. Customs broker job prospects look promising through 2029, with an estimated growth trend of 5 to 7 percent from 2019 to 2029, resulting in an estimated 27,700 job openings.

Licensed Custom Broker Duties and Responsibilities

A licensed customs broker assists importers and exporters in meeting federal requirements for international shipments. They are responsible for complying with trade laws and regulations and are licensed by US Customs and Border Protection. A broker’s responsibilities include advising clients on proper import-export procedures and handling customs business on their behalf.

Customs broker qualifications include maintaining a current license and a customs permit for each district in which the broker will conduct customs business. Customs officials have the authority to levy fines and penalties on brokers who fail to perform their duties or willfully violate the law. Examine the duties of a customs broker in greater detail.

#1. Client representation

The customs broker must have a valid power of attorney from their client to conduct customs business on their behalf. Most customers sign an unlimited power of attorney, granting the broker the authority to perform any lawful act in the course of conducting customs business. It is the broker’s responsibility to confirm the identity of the person issuing the document and that she has the authority to sign it.

#2. Customs transaction management

According to MyPlan, a customs broker’s job description includes completing all the necessary documentation to clear goods entering the United States. The broker creates entry forms with shipment information such as classification codes, country of origin, weights, and quantities using the commercial invoice. Brokers typically transmit information to US Customs via the automated broker interface.

#3. Payment of duties and fees

Customs duties must be paid within ten working days of entry. Brokers may pay customs duties directly and bill their customers. If the importer has an automated clearinghouse account, the broker calculates the number of duties and fees due on the entry and debits the account.

What Factors Affect the Salary of a Licensed Customs Broker?

A licensed customs broker’s salary is determined by a variety of factors, including education, experience, and job location. In this section, we will look at how these factors influence salary.

#1. Years of expertise

Salary increases are typically linked to your level of experience. In general, the longer you work as a customs broker, the more money you can expect to make. According to the Bureau of Labor Statistics and the National Compensation Survey, these factors can influence your customs broker salary.

#2. Location

Your location can also influence how much you can earn as a customs broker. Working in a large metropolitan area typically equates to a higher salary as well as a higher cost of living.

How to Increase Your Salary as a Licensed Customs Broker

Now that you have a better idea of how much you could earn as a customs broker, let’s look at ways to increase your salary.

#1. Improve your skills

Pursuing and improving in-demand skills may put you ahead of the competition for promotions and higher-paying jobs. These abilities include:

  • Classification: Learn how to properly classify imported goods using the Harmonized Tariff Schedule.
  • Valuation: Determine the customs value of imported goods.
  • Licensing: Obtain the necessary licenses and permits for goods importation.
  • Documentation: Prepare and submit the necessary paperwork for importing goods.
  • Auditing: Examine documentation and shipments to ensure that customs regulations are followed.

#2. Expand your network

To be successful, customs brokers must have a large network of contacts. Start by expanding your network if you want to increase your salary. Participate in industry events, join relevant trade associations, and volunteer in your community. The more people you know, the more likely it is that you will be informed about new opportunities.

#3. Maintain a consistent level of performance.

Customs brokers who maintain a consistent level of performance are more likely than those who do not to receive salary increases and bonuses. You will be more likely to receive a raise if you can demonstrate that you are consistently meeting or exceeding your job duties.

How To Become A Customs Broker

To become a customs broker, you should first ensure that you are eligible. While no formal education is required, you must be an American citizen, at least 21 years old, and not currently employed by the federal government. If you meet all of these requirements, you may legally apply to take the appropriate exam and undergo background screening.

The exam, which all customs brokers must pass, consists of 80 questions covering a wide range of import and export knowledge, including entry requirements, penalties, tax rates, valuation protocols, and other topics. While it is possible to self-study and pass the exam, many aspiring customs brokers prefer to enroll in a customs broker preparation program at a community, trade, or vocational college.

The exam is only given twice a year, and 60 questions must be answered correctly to pass. Most experts estimate that the entire application, examination, and licensing process can take up to a year.

Frequently Asked Questions

Is being a customs broker hard?

To obtain the license, you must pass the US Customs broker exam. This is one of the most difficult exams to pass in the United States. The exam is taken by approximately 2,600 people each year, with only about 15% passing. To pass, most examinees will need to take a prep course.

Where do customs brokers make the most money?

Licensed Customs Brokers earn the most in San Francisco, CA, at $107,762, with total compensation that is 46% higher than the national average.

Why is customs broker exam so hard?

The Customs Broker Exam is difficult because it covers a wide range of customs compliance topics. Historically, the pass rate has ranged from 1.5% for the April 2012 test to 34% for the October 2012 test.

What are the skills of a customs broker?

Coordination: adjusting one’s actions to the actions of others. Mathematics is the application of mathematics to the solving of problems. Personnel Resource Management entails motivating, developing, and directing employees while also identifying the best people for the job. Persuasion is the process of persuading others to change their minds or behavior.

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