How to Find Out if Your Freight Broker is Legitimate?

Life would be so easy if you did your business by placing your trust in all the parties involved with no kind of shadow of doubt. For the luckiest, it might be possible, when you have worked with the same partners for a long period of time and you have thrived to build a work environment on the basis of trust and cooperation. But, most of the time, it is not always a bad idea to make the use of the channels available to inspect if the Amazon FBA customs broker Clearit USA you have hired is legitimate or not.

Verify his legitimacy online…

To operate, freight broker must always be licensed and bonded. They are been governed by FMCSA or Federal Motor Carrier Safety Administration. Refer to your broker’s website to check if they have a valid license or not. Ensure that it is renewed from time to time and the needed surety bond has not been canceled. The website will also offer you with additional information like if the license has ever been revoked at any point in time and then later reinstated. Even if the broker has been verified online, always ask for a copy of its operating authority. Compare its name motor carrier number and the dates from the copy you obtained and the ones in the FMCSA database. If there is any kind of discrepancies, inquire about them and practice discretion. Also ask the following questions:

  1. Are they registered with the UCR or Unified Carrier Registration?

The registration is compulsory. If a broker or carrier isn’t registered but does interstate commerce, it can be prone to law enforcement action. Prevent yourself from all kinds of legal troubles whenever possible and check in advance to check if a broker has an existing registration.

  1. Is the broker insured?

Every freight broker must carry an insurance certificate and ensure to get a copy of it for yourself as well for all your files. Cross check all the information mentioned on the certificate. Pay keen attention to if the insurance company is the same as it is listed on the FMSCA website. Additionally, all the information that you find on the agency’s site should match with the certificate. Verify the insured name, effective dates and policy numbers. You can also get in touch with the insurance company and ask them if their policy is in effect nonetheless.

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