The Confusion Is Common
In Sri Lanka's trade industry, the terms "freight forwarder" and "customs broker" (or "customs agent") are often used interchangeably — especially by smaller importers and exporters who deal with a single service provider for their entire shipment. But these are legally and operationally distinct roles.
What Does a Freight Forwarder Do?
A freight forwarder is an intermediary who organises the physical movement of goods from origin to destination. Their core functions include:
A freight forwarder does not necessarily handle customs clearance — that is a separate, licensed function.
What Does a Customs Broker Do?
A customs broker (also called a customs agent or customs clearing agent in Sri Lanka) is licensed by Sri Lanka Customs to prepare and submit customs entries on behalf of importers and exporters. Their core functions include:
A customs broker handles the legal compliance at the border — they do not typically arrange the shipping itself.
The Key Difference
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Does Sri Lanka Require a Licensed Customs Broker?
Yes. Under the Sri Lanka Customs Ordinance, only licensed customs agents may submit customs entries on behalf of importers. A freight forwarder who also handles customs must hold a valid customs agent licence from Sri Lanka Customs.
Do I Need Both?
Many Sri Lanka importers and exporters use a single integrated service provider who holds both freight forwarding capabilities and a customs agent licence. This simplifies communication, reduces handover errors and speeds up clearance.
Freight Express Logistics operates as an integrated freight forwarder with in-house customs clearance capability — covering the full supply chain from origin booking to duty payment and last-mile delivery.
FAQ: Customs and Freight in Sri Lanka
Can I clear customs myself without a broker?
You can act as your own customs agent if you are the importer of record, but in practice this requires ASYCUDA registration and a working knowledge of the tariff. Most businesses find it more efficient to use a licensed agent.
How much does customs clearance cost in Sri Lanka?
Customs clearance fees in Sri Lanka typically range from LKR 10,000 to LKR 40,000 per consignment depending on complexity, value and whether physical examination is required — in addition to the actual duties payable.
What happens if my goods are held at customs?
Goods can be held for physical examination (Red channel), missing documents, or queries about value or classification. Your customs broker should attend and respond. Goods left uncleared beyond the free storage period incur demurrage charges.
Contact Freight Express Logistics to discuss our integrated freight forwarding and customs clearance services.