Brokerage Module
The brokerage module is a dedicated component within logistics ERP systems used to manage customs clearance activities, HS code classification, duty calculation, and compliance with international import/export regulations. It allows freight forwarders and customs brokers to handle border-crossing documentation efficiently, ensuring shipments comply with trade laws and move smoothly through customs processes. This module is critical for global logistics operations where regulatory accuracy is non-negotiable.
How the Brokerage Module Works in Logistics?
In logistics workflows, the brokerage module links directly to shipment records and pulls key data, such as cargo descriptions, values, countries of origin, and transport modes. It uses this data to generate customs declarations, calculate duties and taxes, and classify goods using Harmonized System (HS) codes. Integrated rule engines validate documents and check for compliance issues before submission to customs authorities. Once filed, the module tracks clearance statuses, manages hold alerts, and stores release confirmations and audit history.
Usage of Brokerage Module in Logistics Operations
Customs Declaration Filing
Generates and submits digital customs entries using country-specific formats, ensuring correct data is transmitted for import/export clearance.
HS Code Management and Classification
Maintains an HS code database and matches each shipment’s cargo to the correct classification for duty assessment and reporting.
Automated Duty and Tax Calculation
Calculates applicable duties, VAT, GST, and other charges based on item value, trade agreements, and destination rules.
Regulatory Compliance Checks
Flags restricted goods, missing licenses, or incorrect documentation to prevent shipment delays or legal penalties.
Import/Export Documentation Control
Manages commercial invoices, packing lists, licenses, and certificates required for cross-border cargo processing.
Conclusion
The brokerage module brings automation and structure to the complex world of customs compliance. It reduces the risk of delays, penalties, and misclassification by validating all critical data before submission. Integrated into a logistics ERP, it ensures every shipment adheres to local and international trade laws. For logistics providers handling frequent international shipments, the brokerage module is essential for maintaining smooth customs workflows and regulatory transparency.