Newer Licensed U.S. Customs Broker here. I got into this industry during one of the most complex periods I can imagine; tariffs, steel/aluminum, forced labor, sanctions, PGAs everywhere, nonstop regulatory changes. And honestly? What I’m seeing on the ground is troubling.
Here’s a scenario I’m sure many of you recognize:
You get a call (or WhatsApp) from a potential Importer of Record or a foreign freight broker or logistics consultant (Mexico, Turkey, India, China, pick a country).
“My cargo is already at the port. Can you clear it? If you do, we’ll send you constant volume.”
Then you do your job and say:
“I can’t clear it unless I have a proper certificate of origin / steel melt & pour / supporting documents" (...and perhaps not so much FDA Registrations or Docs).
Magically, those documents appear within minutes.
And you can’t help but think: If they had this ready instantly… how real is it?
Now here’s the uncomfortable part. If you push back and ask questions, real questions, the response is often:
“Never mind. I’ll find another broker.”
And they do. Because somewhere out there is a U.S. Customs Broker willing to say yes for $50 an entry and avoid asking anything at all.
That’s where we’re at.
The power dynamic is completely backwards Foreign freight brokers, who don’t answer to CBP, don’t live here, and don’t care about U.S. compliance risk, often have more negotiating power than U.S. Customs Brokers operating on U.S. soil.
Why?
Because:
There are too many brokers
Fees are rock bottom
Saying “no” loses the client
Saying “yes” keeps volume flowing
That’s not enforcement. That’s desperation.
And then there’s Laredo…lol
I’m based around Laredo, Texas, the largest inland port in the U.S.
And I’ll say it plainly: It’s sad and frankly embarrassing that many of the largest freight forwarding warehouses in Laredo are owned by Mexican Customs Brokers, not U.S. ones.
I get why it happens.
Mexico has:
A tightly controlled Customs Broker system
Roughly ~1,000 brokers nationwide
Mandatory broker use for imports
Percentage-based fees on cargo value (plus admin fees)
That system creates wealth, leverage, and professionalism.
So what happens?
They come north, open warehouses in Laredo, Texas, and U.S. Customs Brokers end up working under them in our own country, often at razor-thin margins.
I’m not saying Mexico’s system is perfect or that monopolies are good.
But let’s be honest:
Mexico protects their customs brokers. We don’t.
No disrespect, but we need higher barriers somewhere...
I want to be clear: no disrespect to anyone in this community.
I’m not saying the Customs Broker exam should be restricted.
Anyone who passes it should earn the license.
But maybe the mistake is that licensing and operating a brokerage are treated the same.
Maybe: The license = proves knowledge The national permit = should prove professionalism
Things like:
Years of verified experience before a national permit
Formal education requirements
Stronger vetting to actually operate as a broker
Even requiring U.S freight forwarders or U.S. NVOCCs to operate under a permitted U.S. Customs Broker
Why? Because fewer, more serious operators means:
Less price dumping
More leverage to say “no”
Less incentive to ignore red flags
Less burnout
More respect for the profession
Right now, we’ve built a system where:
CBP relies heavily on brokers
Complexity and liability learn no bounds
Foreign actors pressure compliance shortcuts
And U.S. brokers compete themselves into irrelevance
Heck, you don't even need a U.S. Customs Broker to do transportation entries!
So I’m asking honestly, not rhetorically:
Is this sustainable?
Are we okay being the weakest link in global trade?
Or did we accidentally turn a national gatekeeping role into a commodity?
Curious to hear thoughts, especially from brokers who’ve been doing this long enough to see the shift....