The role of the customs broker has seldom been more important, with tariffs and rapid technological change creating both challenges and opportunities.
THE WORLD of customs brokers and freight forwarders is evolving rapidly, driven by multiple factors such as; globalisation, digitisation, system integration, sustainability, environmental requirements and regulatory shifts, to name a few.
Technology is automating documentation, compliance checks and cargo tracking, pushing the industry towards more data-driven and real-time operations.
Chief executive of the International Forwarders and Customs Brokers Association of Australia (IFCBAA), Scott Carson, says supply chains are becoming more complex and dynamic, requiring brokers and forwarders to offer more integrated logistics and solutions-based services—not just transactional support.
Sustainability and ESG requirements are also influencing logistics planning and trade-based regulatory compliance. Shippers and cargo owners are becoming savvier, having access to real-time information and more transparency and visibility over their shipments, which gives them more control and input over the supply chain.
Mr Carson says licensed customs brokers (LCBs) are “pivotal players” in the supply chain, facilitating trade and serving as the key link between traders and government.
This is highlighted by the contrast between around 124,000 business importers and 56,000 exporters, compared with just ~1500 LCBs.
“While a relatively small amount of importers manage their own customs formalities, LCBs still handle the overwhelming majority of transactions and carry significant responsibility within the system,” Mr Carson says.
“The Australian Border Force (ABF) does not have the capacity to conduct a 100% check of every import declaration arriving in Australia. This operational reality highlights the importance of maintaining a high degree of confidence in LCBs and their own customs-based systems and processes.”
Mr Carson says licenced brokers act as an extension of the ABF in the private sector, ensuring declarations are accurate and compliant based on the shipment information provided to them by the importer.
The World Customs Organization (WCO) released a study on Customs Brokers in 2016 and later issued Customs Brokers Guidelines in 2018. These publications include valuable observations and conclusions, reinforcing the evolving role of brokers as trade facilitators.
“One key insight is that customs authorities can leverage brokers as communicators and force multipliers to enhance compliance,” Mr Carson says.
“Brokers occupy a unique position: on one hand, they support traders and manage customs clearance formalities; on the other, they are entrusted with assisting in the upholding of government interests. Australia’s customs clearance sector is a skilled profession that supports a range of industries and safeguards vital trade infrastructure.”
Similarly, brokers are critical partners in combating illicit trade and ensuring compliance with the regulatory requirements of other government agencies.
“To achieve these objectives, establishing effective communication channels where issues and concerns can be raised without fear of negative repercussions is essential,” he says.
A tumultuous global trade environment, especially the imposition of increased tariffs on goods from China and now most other major trading countries, is creating significant unpredictability and volatility in the world of international commerce.
Mr Carson says importers and exporters are facing sudden cost increases, shifting sourcing decisions and constant proposed and actual changes to the Harmonised Tariff Schedule, relating to trade with the US.
“This uncertainty has made tariff-based compliance more difficult and increased the risk of US-based customs delays and penalties,” he says.
“Many overseas-based businesses that are involved in selling and distributing their products into the US have had to restructure their international supply chains on short notice, putting pressure on customs brokers and forwarders to adapt quickly and manage risk amid evolving rules.”
Mr Carson says customs brokers and freight forwarders remain critical because they help businesses navigate increasingly complex international trade environments.
“With the now present frequent regulatory changes, geopolitical shifts, volatile geopolitical environment and supply chain disruptions, their expertise ensures compliance, cost-efficiency and timely delivery,” he says.
“Customs brokers and freight forwarders are trade facilitators that can interpret regulations, optimise logistics processes and resolve supply chain gaps and bottlenecks between the multitude of stakeholders throughout the international and domestic supply chain.
“Not only do they facilitate trade, they also provide their importer and exporter customers with strategic guidance, which makes them indispensable partners in global commerce.”
Mr Carson is optimistic about the roles of customs brokers and freight forwarders as they help businesses navigate increasingly complex international trade environments.
“With frequent regulatory changes, geopolitical shifts, volatile geopolitical environment and supply chain disruptions, their expertise ensures compliance, cost-efficiency and timely delivery,” he says.
“Brokers and forwarders are the professional organisations that can interpret regulations, optimise logistics, remove silos and bridge the gaps between the multitude of stakeholders dotting the supply chain.”
IFCBAA recently held its national conference in Adelaide, bringing together sector participants and industry representatives and experts.
Mr Carson says IFCBAA conferences play a vital role in strengthening customs and logistics.
“Networking is of high importance, as these conferences give professionals a rare opportunity to step away from the day-to-day grind and connect with peers, government and industry leaders,” he says.
“Delegates are also expertly informed about the latest trade-based policy and regulatory changes that affect their respective businesses, in addition to experiencing professional development.”
During the IFCBAA national conference, TradeWindow chief executive and founder AJ Smith spoke of the need for “a realistic view” of the global digital trading ecosystem, incorporating new trends in AI.
TradeWindow describes itself as an end-to-end digital trade ecosystem — providing significant benefits by improving the productivity, connectivity and visibility of trade processing.
Mr Smith spoke about addressing trade digitisation in the Asia-Pacific region, suggesting the current trading system was “broken” and “a spaghetti and bird's nest’”.
“We compensate for the issues and we've got plug-in systems and we've got workaround. It is all about trying to fix one issue and that's not the solution,” he said.
“The solution is a realistic view of the world trade environment system and the network, creating a network of networks and standards, interoperability, legal immunisation and data standards.”
We need to change because we've got such supply chain issues, we've got risk and we need to digitise
AJ Smith, TradeWindow chief executive and founder
According to Mr Smith, “tech is actually ready, but the ecosystem is broken”.
“Post-COVID, it's a different environment that we're trading in. Nothing would have changed if it wasn't for COVID because at that moment, everybody was happy,” he said.
“Whereas, governments in the post-pandemic era realised the system was broken. We need to change because we've got such supply chain issues, we've got risk and we need to digitise,” he said.
Mr Smith spoke of the three keys to trade — the movement of goods, the movement of information and the movement of money.
He also mentioned disconnected systems, a lack of tighter standards and a lack of legal harmonisation.
Mr Smith talked about the ASEAN Single Window (ASW), a regional initiative agreed by ASEAN Leaders as a step toward the realisation of an ASEAN Economic Community (AEC).
The ASW connects and integrates the National Single Window (NSW) of each ASEAN member state to significantly expedite cargo and promote ASEAN economic integration.
“A big part of the world is thriving in a great economy. With digitisation and all of these tools, trade and main practices will be exposed,” Mr Smith said.
“But there's this human motivation that the great economy exists, we all know it exists, and we want to slow it down so that the economy can thrive a little bit longer.”
Mr Smith said the missing ingredient was “the intelligence layer”.
“We've had the tools, we've had the technology, we've had the means, but we didn't have the intelligence to bring it all together,” he said.
“Now, AI is moving at speed, getting trillions of dollars of investment. Like, we were in the billion-dollar age before, now we're in the trillion-dollar age.
“This is just out of this world. So, now, the beauty of that is that intelligence is available to us, and making it free, and everybody wants us to use their lockers into their systems.”
Mr Smith said he was talking of AI capabilities well beyond chatbots.
“You only need to know what question to ask, that's where experience comes in. That's available now, and we're at the point of singularity. So, if you don't know what the point of singularity is, I don't know either, but it's a very important point in the technology evolution. That's where the intelligence of the machine overtakes the intelligence of the human,” he said.
He said it was important to invest in AI research as well as to invest in people through upskilling.Also speaking at the IFCBAA national conference was Daniel Curtis, head of the Simplified Trade System Unit (STS) at the Australian Trade and Investment Commission (AUSTRADE).Mr Curtis discussed what the STS program was about and how they had been involved in industry to date.
He said STS was about forming the many agencies, systems and regulations into a single reform program.
“We're looking at exports, we're looking at imports and thinking about all the different participants in the supply chain,” he said.
“And what we're about is working through a reform program that makes trade simpler, faster and easier. The reason we have an STS agenda is because of business and this was really born out of businesses coming to government, going to ministers and saying we have great conversations one on one with different agencies,” Mr Curtis said.
“But what we want to do is kind of see how this all comes together. The Simplified Trade System program was set up almost five years ago and we've been spending a lot of our time talking to industry with co-design workshops where we've sat in your warehouses and kind of looked at how you do your business. We've had formal consultation papers, we come to events like these.”
For more insights on the single window idea, DCN approached Andrew Hudson, lawyer and partner for Rigby Cooke Lawyers in Melbourne.
As the international supply chain moves towards digitising and digitalising its processes, a related issue is how that government can facilitate the movement of goods through that process by reducing the number and complexity of reports needed to be made to government and its border agencies.
“The ideal is that there is one ‘window’ through which all reports can be made which provides information required by government and its agencies,” Mr Hudson says.
“The concept of a ‘trade single window’ or ‘single window for trade’ has been pursued on an international, regional and national basis by many government and non – government organisations.”
The World Customs Organization (WCO) refers to the commonly applied definition as follows: ‘a single window is defined as a facility that allows parties involved in trade and transport to lodge standardised information and documents with a single entry point to fulfill all import, export and transit-related regulatory requirements’.
According to Mr Hudson, the WCO has issued many guidelines on how a Trade Single Window (TSW) can be developed including through the International Convention on the simplification and harmonisation of customs procedures (as amended, which is known as the Revised Kyoto Convention).
The World Trade Organisation (WTO) Trade Facilitation Agreement commits countries to the development and implementation of their own TSWs and has provided guidance on the way they can be developed through the work of the private and government sectors.
“A TSW also requires the development of supporting legal infrastructure and information and communications technology which can support the operation of the TSW, which, of themselves, are difficult outcomes,” Mr Hudson says.
“In an ideal world, there would be national and regional TSWs and a ‘big bold and beautiful’ TSW managing international trade.”
Mr Hudson explains the practice of creating and maintaining TSWs “creates significant challenges” and adoption of regional and national TSWs has not been uniformly achieved.
“For example, ASEAN and the EU are actively working towards the development of a TSW, although the UK has recently stopped its development of a TSW,” he says.
A number of countries have developed TSWs which are working on a national basis. Some countries with relatively developed TSWs include Hong Kong, Sweden, Indonesia, Japan, Singapore, South Korea and Thailand.
“Other nations have developed TSWs but are still working to include reporting to all relevant government agencies,” he says.
“While Australia has versions of TSWs for separate agencies such as the Maritime Single Window being developed for the Australian maritime industry and the ABF’s Integrated Cargo System which is used for the customs clearance of goods, Australia has yet to develop a comprehensive national TSW.”
Mr Hudson says the concept has been “the subject of consideration” for many years and was the focus of the work by the (former) Simplified Trade System Implementation Taskforce which made recommendations regarding its development and implementation.
“However, the creation of a comprehensive TSW across all Australian government agencies operating at the border, taking into account existing legislative requirements and ICT requirements is still some time away,” he says.
“The process would need to be supported by political will and confirmed expenditure by our federal government, full cooperation by government border agencies and the private sector including service providers and those providing software to the private sector.”
This article appeared in the August | September 2025 edition of DCN Magazine