5 Customs Broker Mistakes That Can Hurt Your Import Process

A customs broker plays a crucial role in international trade operations. They are authorized by Mexico’s Tax Administration Service (SAT) to handle customs clearance and know exactly how to navigate the complex customs procedures. However, even the most experienced brokers can make mistakes.

The 5 Most Common Customs Broker Mistakes

1. Incorrect Tariff Classification

A customs broker must be well-versed in tariff and non-tariff regulations, as well as any updates to the Customs Law. One of the most common mistakes is misclassifying goods, which can result in missing critical documentation such as prior permits, certifications, quotas, or mandatory standards (NOMs).

It’s essential for brokers to be cautious and accurate when classifying goods, as this directly impacts duties and taxes. Even seasoned customs brokers sometimes overlook requirements that can trigger costly consequences.

2. Errors in Completing the Import Declaration (Pedimento)

Before filing the import declaration, it’s critical to double-check that the quantities and descriptions declared match the actual goods. Any discrepancy may be treated as an omission, causing authorities to hold the shipment until it’s clarified—and fines may follow.

Additionally, it’s important to remember that certain costs under INCOTERMS—like freight, insurance, and packaging—must be properly declared. Failing to include these dutiable additions correctly can result in sanctions against the broker.

3. Poor Time Management and Lack of Experience in Streamlining the Process

One of the most frequent issues—not just for customs brokers, but also for any importer or exporter—is failing to account for the time required to complete customs procedures. This often leads to delays because they don’t know how to optimize the process using time-saving strategies.

Brokers are strongly encouraged to leverage technology—such as mobile apps or smart devices—to track every stage of the customs clearance process and maintain full visibility over the shipment and required paperwork.

4. Lack of Knowledge of Non-Tariff Regulations

Hiring a broker unfamiliar with non-tariff regulations can create serious problems. These regulations are government-imposed measures that control the flow of goods across borders. A qualified broker must also understand tariff shifts between countries.

The National Foreign Trade Information Service (SNICE) provides tools and resources to help determine which tariff and non-tariff regulations apply to each product.

5. Failing to Keep a Complete Foreign Trade File for Each Operation

By law, every importer must maintain a record of all documents proving the legal ownership and presence of goods in the country. If you hire a customs broker, they are responsible for keeping this record updated—but not all brokers do so consistently.

According to Article 59 of Mexico’s Customs Law, “The importer must submit, in digital or electronic format as applicable, the value declaration and all required information, documentation, and evidence when requested by customs authorities, in accordance with the regulations and terms established by SAT.”

What Legal Backup Does a Customs Broker Have?

A customs broker should be informed, experienced, and knowledgeable enough to handle foreign trade operations. However, they are not a legal entity authorized to resolve legal disputes or contingencies on their own. That’s why it’s crucial for brokers to work alongside specialized customs and trade attorneys.

Today, there are attorneys who specialize in foreign trade law, with both theoretical and practical expertise at the national and international level. Among the key responsibilities of a customs attorney are:

• Understanding how customs processes work, including the correct customs regimes for goods.
• Knowing how to interpret and apply international treaties and economic agreements between trading countries.
• Mastering Mexican laws that regulate foreign trade, including the Foreign Trade Law, the Customs Law, the Import and Export Tariff Law, and the Mexican Constitution.

Want to Learn More About Customs Brokers?

Check out our article “Customs Broker vs. Freight Forwarder” to better understand their differences.

If you’d like more information, feel free to reach out to one of our sales agents. They’ll be happy to provide you with the tools you need to manage your foreign trade operations more efficiently.