Having freight shipped internationally can be a stressful experience. One of the easiest ways to reduce this stress is to work with a licensed customs broker. However, you might be caught off guard when a broker asks you to sign a power of attorney (POA) for your import transaction.
Key Takeaways
With these requirements in mind, you might have more questions regarding the power of attorney for international shipping. Our guide answers some of the most common questions and provides you with a fundamental understanding of a customs POA.
A POA is a written document that gives a third party the authority to act on the behalf of you or your business. In terms of international shipping, this is the documentation that allows a customs broker to take temporary possession of your shipment at the U.S. border or a port of entry and clear your products through customs.
Customs clearance can be a complex process. Giving power of attorney to a customs expert can make it far easier to clear your shipment, especially if you have little to no experience importing goods from other countries.
If you plan to retain a customs broker to act as your importer of record (IOR), you will need to sign over power of attorney. This gives the power to the customs broker to receive your goods, sign documentation, and make decisions on your behalf.
As noted above, CFR 19.141.146 outlines the requirement for importers to sign a POA in order to have a customs broker work on their behalf. The code specifically states, “Before transacting Customs business in the name of his principal, a customhouse broker is required to obtain a valid power of attorney to do so.”
It’s not mandated by law that you must grant anyone power of attorney, but unless you plan on brokering your own imported shipments, you will need to grant that authority to your customs broker.
Related: 12 Benefits of Using a Customs Broker
The business representative who authorizes POA should rank highly within their organization. CEOs, CFOs, and people in presidential/vice presidential roles are usually responsible for authorizing POA on behalf of their businesses.
Not every import operation might be large enough to have these specific roles. In such cases, the owner/operator would handle signing POA over for import transactions.
Handing over power of attorney isn’t as simple as just signing the bottom of a form. You will be responsible for providing the party with POA information they need to act as your proxy.
The information includes:
Besides needing that information to act as your power of attorney, the customs broker also needs the basic information about your imports in order to know what products they’re actually helping clear through customs.
Granting a customs broker POA over your shipment has a number of benefits that add up to two main points.
For a specific example, consider the Harmonized Tariff Schedule (HTS) codes used to classify goods coming into the country. The HTS is, by necessity, a highly complex and detailed document. Inexperienced importers may find it difficult to accurately classify their commodities, and even minor mistakes can result in hefty fines from CBP.
By signing POA over to a licensed customs broker, you can virtually eliminate this risk and ensure that your goods clear customs hassle-free.
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Allowing a broker to act on your behalf is one of the smartest ways to prevent penalties and seizures when your goods enter the United States. If you’re ready to partner with a customs expert, we’re here to help.
USA Customs Clearance offers expert, trouble-free brokerage services for importers just like you. With our knowledge and experience, you can rely on a smooth and fast customs clearance process. This lets you put more time and energy into reaching customers, growing your business, and increasing profits.
In addition to brokerage services, we also offer:
Once you’re ready to grant power of attorney for international shipping, give us a call at (855) 912-0406 or submit a contact form online. We’re ready to help you power up your importing business.
Hello, I have a package waiting at customs in Louisville and I need to deliver it to Amazon, where you can pick it up from customs. I need POA power of attorney to deliver the package to Amazon. Can you help me? Kind regards