What are the differences between a forwarder and a customs broker?

It is important to recognize that only a licensed Customs Broker can represent an importer or an exporter through the Canada Border Services Agency.

However, it is a tendency to believe that a Customs Broker is a company that deals with customs. False, a custom broker is an individual that has successfully completed the examinations set by the CBSA that give him a certification and the right to operate as a customs broker. Furthermore, the custom broker should always have power of attorney procurement from its customers, giving him the right to represent that customer.

The customs billing fees are based on the value of the merchandise in Canadian dollars; they can also offer negotiated forfeit rates per transaction, a lump sum rate that could be interesting; the Canadian brokers use a Broker’s fee chart. 

 A Customs Broker could, also, offer an international intermodal forwarding service. In fact, by offering the forwarder services they can serve their customers on a door to door customs cleared service.

With regards to the forwarders, they are not qualified to initiate a customs clearance procedure with the CBSA.  They are specialised in the movement of the freight under consolidation at a very competitive rate. They can serve you on a door to door fashion, but they will have to use a Customs Broker for the customs clearance.

The forwarders bill on a Kg or a cubic meter basis and often built in a lump sum rate. Normally, their fees include all services, but be careful, because often these rates do not cover the terminal fees or handling charges.
 
A forwarder is not permitted to deal directly with customs for a transaction’s clearance.  A forwarder will have to use Customs Broker Services of his choice or provide the necessary goods customs clearance documents the customer’s certified Customs Broker.