Did you know that at the end of 2022, new rules came into effect and changed the policies and procedures for how importers interact with customs brokers in the US? This publication contains everything you need to know about this change.
A Power of Attorney (POA) is a legal document you sign to give someone you trust the authority to make decisions on your company’s behalf. On the basis of the power of attorney granted, this lawyer, agent or official broker has the legal right to represent himself and to make decisions before the competent authorities (e.g. customs).
How has the new regulation affected POAs?
- Customs brokers sign the customs power of attorney directly with the importer, not through a freight forwarder or third party.
- Customs brokers now play a crucial role in customs operations as they have a duty to advise their clients on how to rectify any breaches, errors or omissions and must record these warnings.
- Customs brokers are now authorised to register entries at ports regardless of the U.S. customs territory in which they are located, eliminating the need to hire brokers based on the port of entry.
How should dispatchers implement the POA?
- Brokers must sign the POA before carrying out any customs business for a client.
- Brokers may use CBP Form 5291 Power of Attorney or other alternatives demonstrating that the importer authorises the broker to act as its agent in commercial customs transactions.
- Include the full name of the importer and the broker, as well as their business names.
- Include the alternative payment method statement from 19 CFR 111.29 (b) (1), executed after 1982, in the POA’s, or attached to it.
- Carry out new POA’s for existing clients whenever there is a corporate restructuring that results in the legal extinction of the importer or broker.
- POAs can be granted for an unlimited period of time. However, POAs for partner customers must be renewed every two years.
- POA’s are not required if the broker is acting as a registered importer.
How long should brokers keep records of POAs?
- Brokers must keep records of POAs on file until they are cancelled. Revoked POAs must be retained for five years from the date of revocation or until the customer becomes an inactive customer. An “active” client is one from whom the Broker has obtained a POA and with whom he has carried out customs business on at least two occasions in a period prior to 12 months. An “active” client is one from whom the Broker has obtained a POA and has done customs business with at least twice in the preceding 12 months.
