Brokerage is a payment to an intermediary who does not act on his own account.
A broker acts for both buyer and seller and usually has no role other than to put both parties to the transaction in touch with each other.
Brokerage is usually calculated as a percentage of the business concluded as a result of the broker’s activities.
The small percentage the broker receives is a good indication of the broker’s rather limited responsibilities.
It is, therefore, important to establish the exact role of the intermediary rather than accept the term ‘broker’ at face value (see also WCO EN 2.1).