Broker License
Broker License A permit issued by U.S. Customs and Border Protection that authorizes individuals or companies to act as customs brokers, allowing them to file customs entries and conduct customs business on behalf of importers.
Latest Update (March 2025)
CBP has announced the broker license exam will be available in a computer-based testing format starting October 2025, replacing the traditional paper-based testing system.
View CBP AnnouncementWhat It Means
A broker license is essentially a professional credential issued by the U.S. government that allows someone to represent importers in customs matters. Think of it like a specialized law license that focuses exclusively on helping businesses navigate the complex rules of bringing goods into the country, filing the right paperwork, and paying the correct import taxes.
What is a Broker License?
A customs broker license is a federally-issued credential that authorizes the holder to conduct customs business on behalf of others. Getting this license requires extensive knowledge of customs regulations and procedures:
Official Authorization
A legal credential from CBP that permits filing customs entries, paying duties, and representing importers
Knowledge Verification
Proves the holder has demonstrated expertise in customs regulations through a rigorous examination process
License Types
Individual License
Issued to a specific person who has passed the broker exam and background check
Corporate License
Issued to a business entity that has at least one qualifying licensed broker as an officer
National Permit
Allows brokers to file entries at any port nationwide (replaced the district permit system in 2022)
Historical Timeline
License Formalization
Tariff Act of 1930 formally established customs broker licensing requirements
Exam Standardization
Nationwide standardized broker exam implemented with stricter requirements
Electronic Filing Era
Mod Act required brokers to file entries electronically, changing license requirements
Continuing Education
CBP began encouraging formal continuing education programs for licensed brokers
National Permit
Implementation of national permit system, eliminating the need for multiple district permits
Exam Modernization
Restructured examination with expanded focus on ACE, trade agreements, and e-commerce
Real-World Example
The Journey to Becoming a Licensed Customs Broker
Meet Sarah Chen
Sarah works for an international logistics company and decides to pursue a customs broker license to advance her career. Here's her path through the licensing process:
Phase 1: Preparation (6-12 months)
- Purchases recommended study materials including CBP regulations (19 CFR), Harmonized Tariff Schedule, and prep course materials
- Dedicates 15-20 hours weekly to studying for 8 months
- Takes multiple practice exams, focusing on challenging areas like classification and valuation
- Joins online study groups with other aspiring brokers
Phase 2: Examination Day
- Takes the October exam, bringing allowed reference materials
- Completes 80 multiple-choice questions within the 4.5-hour time limit
- Uses a strategic approach: answering easier questions first, then returning to more difficult ones
- Waits approximately 6 weeks for results
Phase 3: Post-Exam Process
After receiving notification that she passed with a score of 78%, Sarah:
- Submits CBP Form 3124 (Application for Broker License) with the $300 application fee
- Completes fingerprinting and background investigation
- Receives approval notification after 3 months
- Pays the $500 license fee
- Obtains a $50,000 customs broker bond
- Applies for and receives her national permit
The Result
After approximately 18 months of effort and $850 in fees (plus study materials), Sarah becomes a licensed customs broker. This credential allows her to:
Receive a 15% salary increase at her current company
Take on more responsibilities handling key client accounts
Begin creating a career path toward customs compliance management
Add a valuable professional credential recognized throughout the industry
Broker License Exam Simulator
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