CBP New York Offers POA Validation Techniques

The Port of New York/Newark issued a Nov. 9 notice on the importance of validating powers of attorney "prior to transacting Customs business on behalf of the principal." Ensuring the validity of each POA allows brokers to join CBP "on the national security frontlines in verifying the data used to screen what enters this country," Port Director Adele Fasano said. "In addition to security, the broker's own professional business interest and continuing obligation to demonstrate 'reasonable care' require verification of the POA grantor's identity and legal authority (position in a company or partnership) to enter into a POA. CBP has successfully pursued administrative penalties as well as criminal prosecution against brokers who fail to obtain valid POAs."

The port also included some suggestions for how to validate a POA. Among the best practices are to have the POAs completed in person to allow for a photo ID review, and a check to verify the POA grantor's business and "registration with the State authority." Also suggested are the use of a mapping system to check for a "brick and mortar" location and not just a postal box and a review of a client's website beyond just he landing page, it said.

The port also pointed to Commercial Customs Advisory Committee recommendation 010045 on verifying the authenticity of information (see 1607260019). The agency said CBP "may seek to revoke or suspend an individual and/or corporate broker's license or initiate a broker penalty in the amount of $30,000 for the subsequent violation of this nature."

Email ITTNews@warren-news.com for a copy of the notice.