Reference Message Network reported on May 11 according to a report on May 9 on the website of the US "Wall Street Journal". Laredo is a city in Texas that relies on cross-border trade. Most workers here are worried about the unpredictable Trump tariff plan having adverse effects. However, the knowledge of customs brokers has never been as popular as it is today.
Customs brokers help American importers classify goods, declare tariffs to the US Customs and Border Protection, and assist clients in paying taxes. During the heyday of free trade, this was a dull job that relied on rote memorization.
However, in recent months, customs brokers have received an overwhelming number of requests from clients. Clients are striving to adjust their supply chains to mitigate the impact of Trump's tariff policy. Thus, customs brokers have taken on roles as accountants, lawyers, and consultants, even predicting the future for those eager to understand U.S. policies.
Edwardo Lozano, founder and head of U.S. customs brokerage Elko, said: "Although we hate tariffs, from a business perspective, I think our performance this year is better than any previous year." He estimates that business has grown by 20% over the past month.
Diana Sanchez, an auditor at Elko, said she recently spent 13 hours a day sorting out customs documents for a Fortune Global 500 company to ensure that 400 shipments sent weekly from Mexico to the United States were correctly classified under 18,000 codes in the U.S. Customs and Border Protection database. Tariffs are determined by these codes.
In the past, one code was sufficient, but now three or five codes are needed to meet the requirements of tariff and customs operation guidelines. The majority of the work to complete and update spreadsheets must be done manually because relevant departments have not yet developed programs suitable for the frequently changing new operational guidelines.
Miguel Perez, senior manager of cross-border operations at another customs brokerage "TA Services", said automotive industry clients are particularly concerned about (customs issues). Raw materials such as metals frequently cross borders to be processed into parts and flat-screen televisions for American consumers.
Laredo, in Texas, is one of America's largest inland ports, processing goods worth more than $800 million daily. Traffic in the downtown area stops several times a day to wait for freight trains to pass through. Laredo has a vast warehouse complex belonging to more than 200 customs brokerages. Many of these customs brokerages were originally family-run businesses opened by Mexican-American families. In the 1990s, the North American Free Trade Agreement brought them a flood of business.
A leader of a U.S. customs brokerage association said: "If you want to be an actor, go to Hollywood. If you want to be a customs broker, come to Laredo."
This leader is hiring more staff to assist with the large amount of paperwork generated by the new tariff policies. He stated that more paperwork also means customs brokers face more risks and challenges.
Rules change rapidly. The U.S. Customs and Border Protection system and customs brokerage databases cannot keep up with policy changes, often failing to provide operational guidelines for which tariff formulas should be used, leaving customs brokers and their clients at risk of being fined or overpaying. Clients call hoping customs brokers can interpret the impact of Trump's social media updates on the tariffs they pay.
In addition, the president of a large customs brokerage and warehouse operator in Laredo told reporters that customs brokers are also worried that tariffs will exacerbate inflation and overall drag on domestic demand in the U.S. (Translated/Compiled by Liu Ziyuan)
Original article: https://www.toutiao.com/article/7503123328648675892/
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