The Importance of Power of Attorney for Freight Forwarding
Understanding Legal Requirements for US Customs
One of the most common questions we have been hearing lately is “Why do I need to give my customs broker Power of Attorney?” This is a fair question and it can sometimes feel like another case of bureaucratic red tape when establishing Power of Attorney (POA). However, when it comes to US Customs, you always want to make sure you are following the letter of the law. Establishing POA is not only required by law, it enables your customs broker to make sure all aspects of the customs entry process are legal.
You might have heard of POA regarding personal decisions, such as giving a family member or close confidant control over financial or medical choices. The concept with customs brokers is similar; permission for your customs broker to represent your interests when dealing with imports and/or exports.
The answer to “Why” is simple: customs brokers are licensed by Customs and Border Protection (CBP). Licensed brokers, such as Sheltered International, have passed exams and are incredibly knowledgeable about sometimes obtuse or obscure freight forwarding regulations. Giving your custom broker POA might include, but is not limited to, the ability to endorse, sign or declare requests or delivery or withdrawal, collect drawbacks, act as a grantor of import bonds, and, in general, transact customer business.
Amended Laws from Customs and Border Protection
The National Customs Brokers & Forwarders Association of America, Inc. (NCBFAA), an organization that tracks legislative and regulatory issues for over 100,000 international trade workers, recently highlighted the importance of a current POA. As of December 19th, 2023 when 19 CFR 111.36(c)(3) entered into effect, “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 in order to transact customs business on behalf of the client” (emphasis ours).
Using Power of Attorney to Create a More Efficient Workflow
It is understandable to misinterpret POA as unnecessary. Some business owners might believe in the efficiency of communicating directly with their customers and not wanting to bring in a third-party. However, the third-party in this instance is one with expertise in the field and licensed standing will speed up the process and make sure that your business will not have to pay unexpected fines.
While it may seem like a hassle or roadblock at the time, establishing POA only needs to be done once. With your licensed customs broker acting as a go-between, there is not a need for constant back and forth and extra checking on legal items.
Executing Power of Attorney Can Be Simple
Fortunately, Sheltered International has plenty of experience working with the CBP and businesses of all sizes. It typically does not take more than a few minutes to satisfy all of the paperwork and legal requirements for POA. We make it simple for you; POA can be accomplished via PDF or by logging into the SiShips online portal.
It is even possible to sign a non-resident POA. Businesses located outside of the United States just need to have two company officers with ID sign the requisite forms.
While establishing POA is vital for conducting imports and exports business, it is not complex or burdensome. Remember that POA gives Sheltered International the ability to serve in your best interests as your freight forwarding partner.
How SiShips Gives You the Advantage
Sheltered International combines expertise with state of the art software to bring you quality domestic and international shipping solutions. SiShips puts the shipper in control, offering efficient and cost effective ways to ship your product.
To learn more about managed transportation with SiShips, or to view a demo of our software, contact us today.
