Understanding Brokerage Charges for Cross Border Shipments
A brokerage charge, also known as a customs brokerage fee, is the fee charged by a customs broker or carrier to facilitate customs clearance. Regardless of a shipment’s value, customs paperwork must be filed and the shipment must be processed before it can enter the destination country.
Brokerage services typically include:
Preparing and submitting customs documents
Communicating with customs authorities
Handling inspections, permits, and regulatory requirements
Managing administrative activities required to release the shipment
Important: A brokerage charge is not a government tax or duty. Even when no duties or taxes are owed, the customs clearance process still needs to be completed, which means a brokerage fee may still apply.
Why You May See a Brokerage Charge Even When Duties or Taxes Are Zero
A shipment may qualify for duty free or tax free treatment through a trade agreement or tariff classification, but a customs entry must still be filed.
Customs brokers and carriers often charge a minimum entry fee or clearance fee for their work.
Result: A shipment with zero duties or taxes can still generate a brokerage charge.
Ground vs. Air / Courier Shipments & How Brokerage Is Billed
| Mode / Carrier Type | Brokerage Billing Approach | Notes |
|---|---|---|
| Ground (road freight or ground couriers) | Often charged separately as an added line item | Common on standard ground shipments |
| Air / Express / Courier | Often bundled into the service cost | Express carriers typically include brokerage in their pricing |
| Carriers acting as broker/disbursement | May add a “disbursement fee” when advancing duties or taxes | Separate from the brokerage fee itself |
The De Minimis Rule and Its Removal
What Was the De Minimis Rule?
The United States previously had an USD 800 de minimis threshold, which allowed shipments valued under USD 800 to enter with simplified customs clearance and no duties or taxes. Many low value parcels skipped brokerage or incurred minimal fees because processing requirements were limited.
What Changed?
Effective August 29, 2025, the United States removed the USD 800 de minimis exemption for all countries.
This means:
All shipments entering the U.S. must undergo full customs clearance
Even low-value shipments require processing
Every shipment may be subject to brokerage or clearance fees, regardless of duty or tax outcomes
Why This Matters for Brokerage Charges
Before the change, many low value shipments avoided brokerage charges entirely or had reduced costs due to simplified processing. With the de minimis exemption removed:
Every shipment must be processed under formal or informal entry procedures
Brokerage and clearance services are required on every parcel
Even if duties or taxes are zero, the administrative work is still performed
Brokers and carriers may charge for the service, as the clearance process must still occur
From a customer perspective, transparent brokerage fees are more important than ever. Understanding these requirements helps avoid surprise charges and ensures more predictable cross border shipping costs.
About ShipTime:
Ship Smarter – with ShipTime, we are a true partner beyond just discounted rates with the Top National Couriers. We provide a best in class shipping platform packed with features and backed by our legendary Heroic Support™ team.
You can sleep easy with ShipTime’s best-in-class customer care. Our bilingual team is available by phone, live chat, or email Monday – Friday from 8:30AM to 8PM EST.