By Alice Magos, Online Advice Columnist

Dear Alice,

I'm interested in international trade. Can you tell me the difference between a Freight Forwarder and a Customs Broker? My partner and I keep going back and forth over this distinction.

Confused in Cleveland

Dear Confused,

Well, a dyed-in-the-wool, genuine freight forwarder might howl in indignation at this characterization, but I'm here to tell you that "freight forwarder" is just a fancy term for a travel agent for cargo.

If you're an exporter, your friendly freight forwarder is the guy (or gal, or company) who moves your stuff from here to there. That is, he moves stuff you've sold to your overseas customer via carriers (ship, train, plane, hot air balloon, blimp, or pontoon bicycle) so it actually gets to your customer overseas. It's his job to make sure all the documentation is in order, that all the export regulations have been complied with (no guns, no hazardous chemicals, no endangered species) and that all the import restrictions are met (no rice to Japan, no practically anything to Egypt).

On top of all that tedious paper-pushing, your freight forwarder can provide other valuable services, such as banking, warehousing and distribution, packaging and relabeling, and even translating and interpreting. He's an especially handy fellow to have around if you're a rookie exporter, since he knows the answers to all the questions you're too dumb to ask. He can keep you out of a peck of problems.

On the other hand, if you're an importer, you'll be hiring a customs broker to get the stuff you've bought from your overseas supplier safely through the wilds of the U. S. Customs house and into your loving hands. Be forewarned that there are customs brokers (paper filers who assume you know what you're doing) and then there are customs brokers (full-service firms who can save you from yourself.)

Be aware that there are up to 40 federal agencies that may be interested in certain imported products and a huge body of laws to be reckoned with on tariffs, trademark, food and drug regs, and other issues too numerous to count. A licensed, full-service customs broker is the best guide you can get for the perilous passage of international trade.

So you see that freight forwarders and customs brokers can both deliver the goods for you, one way or another. Which you use just depends upon whether your goods are coming or going.

But before hiring one, take time to educate yourself about the ins and outs of this import/export game, so you'll know a good freight forwarder or customs broker when you see one. Do your research through some of the many available sources of exporting information such as Export.gov and Bureau of Industry and Security."

May good fortune follow you, and if you have any questions, be sure to Ask Alice!

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