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|Requirement for Customs Broker POAs Executed Prior to Dec. 19 to Be Satisfied by Feb. 17, 2023|
Customs and Border Protection (CBP) in a Dec. 1 message to customs brokers said in the Customs Broker Modernization Regulations under 19 CFR 111.36(c)(3), which becomes effective on Dec. 19, a customs broker must execute a power of attorney (POA) directly with an importer of record (IOR) or drawback claimant (client) and not through a freight forwarder or other third party to transact customs business on behalf of the client.
For customs brokers with POAs executed prior to Dec. 19, CBP said it will permit the requirement identified in the Customs Broker Modernization Regulations under 19 CFR 111.36(c)(3) to be satisfied by Feb. 17, 2023. “Brokers may take steps to ensure that a POA has been directly executed with an importer or drawback claimant by affirming the POA via direct communication with the importer or drawback claimant,” CBP said.
On or after Dec. 19, Customs Broker POAs must be executed pursuant to the requirements in 19 CFR 111.36(c)(3) established by the Final Rule, CBP said.
How must a customs broker obtain a POA with a client?
A customs broker must execute a POA directly with the importer of record (IOR) or drawback claimant, and not through a freight forwarder or other (unlicensed) third party, in order to transact customs business for that importer of record or drawback claimant. The term “directly” means the IOR or claimant must execute and sign the POA by directly communicating with the customs broker, and cannot have an agent or third party sign or negotiate the POA in their stead. However, the IOR or claimant may have an agent or third party assist in executing the POA, for example, by providing translation services; providing counsel in reviewing the terms of a POA; or, providing courier services to relay a written POA, CBP explained.
Questions about this message should be sent to CBP’s Broker Management Branch, Office of Trade at firstname.lastname@example.org.
Podcast by NCBFAA Customs Counsel Lenny Feldman
It is most important for importers and customs brokers to keep their powers of attorney (POAs) up to date, so they may continue conducting customs business together. While these requirements largely remain in place under the new customs broker regulations, one significant change that’s drawing attention and concern is the fact that starting Dec. 19 the customs broker will be required to execute its POA directly with the importer of record or drawback claimant, and not via a freight forwarder or third party as permitted in the past.
Listen to this insightful “Two-Minutes in Trade” podcast by Lenny Feldman, NCBFAA Customs Counsel and Operating Committee Member with the law firm of Sandler, Travis & Rosenberg, P.A., about whether your POAs are ready for the new customs broker regulations.