FedEx Brokers (what they are, how they work + more)
International shipping can be a minefield if you don’t know what you’re doing. This is because each country has different rules about what products are allowed, how much it costs, and what documents need to be filled out.
Fortunately, your international FedEx shipments include agency services. In this article, you’ll learn more about FedEx’s agency services and how they can help expedite your next shipment, so keep reading to learn more!
What is the FedEx Broker in 2022?
FedEx’s international shipping service will be available in 2022 with a customs broker called FedEx Broker-Inclusive. For international shipments with a declared customs value of less than $500,000, FedEx defaults to the designated broker and uses its US Customs and Border Protection (CBP) to assist with customs clearance. Other services include customs and tax collection, protest preparation and filing, and more.
For more help navigating the world of international shipping, complete this article for more helpful facts and tips!
What is a customs broker?
Before answering any questions about whether FedEx uses brokers, it’s important to understand what brokers are and the role they play in international shipping.
Brokers, also known as customs brokers, are experts at helping shippers through the customs clearance process for international shipments.
Mainly, these professionals fill out the paperwork and ensure that the shipper follows any rules or regulations related to cross-border trade.
Brokers can be individuals, companies or other entities. All US-based brokers must be certified and accredited by US Customs and Border Protection (CBP).
Why do I need a broker?
When shipping internationally, you do not need to hire a broker. However, if you choose not to use a broker, it is your responsibility to understand all the rules and regulations.
In addition, it is your responsibility to submit all shipping documents to CBP yourself and to ensure that the information you provide is accurate.
However, given the complexities of international shipping, many businesses hire brokers to save time and avoid mistakes or charges.
Does FedEx use a broker?
FedEx’s international shipping services include customs brokerage, also known as FedEx Broker-Inclusive.
FedEx defaults to the designated agent when you use the agent service for international shipments with a declared customs value of less than $500,000.
Additionally, FedEx will use its U.S. Customs and Border Protection (CBP) bond to facilitate customs clearance.
Therefore, if you use the option to include a broker for a shipment with a declared customs value of more than $500,000, FedEx may continue to act as a broker.
However, in this case, the goods will be cleared under the importer’s CBP letter of guarantee.
Although FedEx provides brokerage services, you may also choose to use your brokerage through the FedEx International Broker Select service.
That said, be sure to specify that you will be using your broker before shipping; otherwise, FedEx will be the default broker.
What does FedEx’s brokerage services include?
FedEx offers comprehensive brokerage services, including the following:
- Duties and Tax Calculations
- customs bond
- Protest preparation and filing
- Follow up on clearing issues
- tax refund system
- Trade Facilitation Solutions
How do I use FedEx’s proxy service?
Before shipping, you should take the following steps to ensure your shipment arrives at customs in good condition:
1. Provide power of attorney
When using FedEx agent services, you must provide FedEx with a power of attorney for the company to act as your customs broker.
To begin the process, download and complete the Power of Attorney form.
2. Connect with Customs and Border Patrol (CBP)
Depending on your expected shipping frequency, you can arrange for a one-time or continuous use letter of guarantee.
For assistance with arranging a CBP bond, please email ftn_bond@fedex.com.
3. Understand Ancillary Fees
FedEx may charge assisted customs clearance fees for the following international shipments:
- Customs clearance
- Services requested by the shipper, recipient or importer
- Recover fees that regulators transfer to FedEx for filing
These service charges may apply to U.S. or non-U.S. shippers, recipients or designated third parties.
For more information on charges that may apply to your shipment, please select the destination country from the “Assessment of Assisted Customs Service Charges” on the “Imported Shipments” list.
What are the brokerage fees for FedEx?
A customs clearance fee will be charged when FedEx arranges customs clearance and processes the shipment as a shipment with brokerage included.
This fee is charged to cover the cost of checking the commercial invoice submitted with the shipment.
For shipments from Canada to the U.S., the fees are as follows:
- Customs Clearance Fee – $35.00
- Additional Commercial Invoice (after 1) – $5.00
- Additional Commercial Invoice Lines (after 5 lines) – $1.00 per line
FedEx customs clearance fees include the following:
- Admissibility Review
- Compliance Review
- delivery order
- ACE cargo release
- Free Trade Application
- Shipment/Event Tracking
- Duties and Tax Calculations
- tax preparation
- Status notification
- ABI processing
- liquidation monitoring
- Item data archive
- ACE Entry Summary
- online pictures
Note that this $35.00 fee covers the most common paperwork required by CBP.
Additionally, additional fees may apply for FDA reporting, additional bills of lading, and real-time entry/quota processing.
For shipments from the U.S. to Canada, the customs clearance fee is CAD 75.00 and other government agency fees are USD 7.50.
To view customs clearance services and associated fees for shipping to other countries, please see here.
To learn more, you can also read our posts on FedEx Military Shipping, FedEx Express Saver, and FedEx Collect.
in conclusion
If you ship any volume internationally, it’s worth learning more about FedEx’s brokerage services. Not only are these services affordable, but they also save you the trouble of trying to navigate international shipping yourself.
