![[logo] ShipNerd - Ship smarter!](https://www.shipnerd.com/support/wp-content/uploads/2024/02/logo_4x.svg){kind=logo}
Support Home > Import & Export Shipping >
Brokerage 101: Understanding Brokerage Fees
What is Brokerage?
When goods cross international borders (shipping internationally), they must clear customs. Couriers often act as customs brokers, handling the paperwork, calculating duties/taxes, and advancing payments on your behalf. For this service, they charge brokerage fees – someone’s gotta do it!
Brokerage services include:
- Preparing and submitting customs entry paperwork.
- Calculating duties and taxes owed.
- Paying duties and taxes to customs on behalf of the importer and subsequently collecting on those fees paid.
Brokerage Fees
Brokerage fees are the charges applied by a courier for handling the customs clearance process for your shipment — regardless of value. Starting August 29, 2025, all shipments will require either a formal or informal customs entry when entering the United States, meaning that brokerage fees will always apply even if the shipment is entered duty-free.
Common Types of Brokerage Fees
- Entry Preparation Fee – Charged for filing the import entry with customs. This fee always applies.
- Disbursement Fee – Charged when the courier advances duties and taxes to customs on behalf of the importer – typically calculated as a percentage of the duties/taxes advanced, with a minimum flat fee.
- Additional Line Item Fees – Applied when an invoice contains multiple tariff codes requiring extra processing.
- Special Handling Fees – For shipments requiring extra effort to clear, such as food, pharmaceuticals, or restricted items (ie: FDA).
How Brokerage Fees Work Together
| Fee Type | When It Applies | Example |
|---|---|---|
| Entry Preparation Fee | Always | Every shipment |
| Disbursement Fee | When duties/taxes are owed | Goods with 5% duty |
| Additional Line Item Fee | When multiple tariff codes | Apparel + electronics |
| Special Handling Fee | For regulated goods | Food, FDA, Pharmaceuticals |
Example Scenarios
- Duty-free shipment under a trade agreement (ie: USCMA): Entry prep fee applies. No disbursement fee because no duties/taxes are owed — depending on the commodity that you are shipping.
- Shipment with duties owed: Entry prep fee + disbursement fee (for advancing duties) + applicable government fees & duties.
- High-value shipment with many tariff codes: Entry prep fee + additional line item fees + disbursement fee (if duties apply).
Key Takeaways
- Brokerage fees are the collection of charges for customs clearance work.
- Disbursement fees are one type of brokerage fee — they apply only if the courier advances duties/taxes on your behalf and subsequently collecting the fees that they’ve advanced.
- Entry prep fees will always apply (regardless of value) because all shipments need to be cleared by customs.
- Government-imposed fees (like MPF in the U.S.) may also apply in addition to courier brokerage fees.
- Even duty-free goods can have brokerage fees — but not disbursement fees if no duties are paid.
How ShipNerd Helps
We know brokerage fees can feel like surprise costs that eat into margins and frustrate your customers. That’s why we’ve worked hard to negotiate discounted brokerage rates with our courier partners.
What this means for you:
- Lower Costs: You (and your customers) save money on the fees that always apply, like entry preparation.
- More Predictability: By reducing and simplifying brokerage charges, you can estimate landed costs with more confidence.
- Better Experience for Your Customers: Lower brokerage fees mean fewer surprise charges at delivery, helping you keep buyers happy and coming back.
We’re committed to helping businesses of all sizes ship smarter — not just with competitive shipping rates, but also by tackling hidden costs like brokerage fees.