Source: U.S. Customs and Border Protection; Logfret USA
Date: 18th August 2023
As of February 17, 2023, brokers holding powers of attorney (POA) for active clients must satisfy the requirements identified in the Modernization of the Customs Broker Regulations Final Rule (87 FR 63267) under 19 CFR 111.36(c)(3).
Brokers should ensure that a POA has been directly executed with an importer of record or drawback claimant (client), and not through a freight forwarder or other (unlicensed) third party, in order to transact customs business for the client.
- If the broker holds a POA that was executed and signed by a freight forwarder or other third party on behalf of the client, the broker must execute a new POA with the client that meets the Modernization of the Customs Broker Final Rule requirements.
- If the broker holds a POA signed by the client, however, the broker did not execute the POA through direct communication with the client, the broker may affirm the existing POA via direct communication with the client or may execute a new POA through direct communication with the client in order to comply with the new requirement.
Brokers executing a POA on or after December 19, 2022 must comply with the requirements in 19 CFR 111.36(c)(3) established by the Final Rule. These requirements include the following:
- Brokers must directly execute a POA with the client in order to transact customs business.
- An agent or third-party cannot serve as a barrier to communications between brokers and the client; however, the client may have an agent or third-party assist in executing the POA, for example by: providing translation services; providing counsel in reviewing the POA terms; or providing courier services to relay a written POA.
In addition, a Broker A-Broker B relationship is not prohibited by the new requirements as long as the client authorizes it broker (Broker A) to allow other brokers (Broker B) to transact any portion of the customs business conducted on behalf of the client. For further information on the Broker A-Broker B relationship, see the Customs Broker Guidance for the Trade Community publication.