Brokers Should Communicate Directly With Importers to Re-Execute POAs Ahead of Feb. 17, CBP Says

A 60-day “cushion” CBP is giving customs brokers to re-execute existing powers of attorney directly with importers of record and drawback claimants will “allow the brokers time to contact the appropriate party with whom they need to re-execute the power of attorney,” Jeannine Delgado of CBP’s broker management branch said during a Dec. 1 webinar held by CBP.

The webinar came hours after CBP announced by CSMS message that brokers have until Feb. 17 to re-execute any powers of attorney they had previously executed with freight forwarders or other third parties to satisfy a new requirement in the agency’s recent broker modernization final rule that the POAs be “directly” executed with the importer of record or drawback claimant (see 2210170071).

By “directly,” CBP means that “the IOR or claimant must execute and sign the POA by directly communicating with the broker, and cannot have an agent or third party sign or negotiate the POA in their stead,” CBP said in the message. “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.”

The requirement takes effect for all new POAs Dec. 19. The 60-day grace period runs from that effective date until Feb. 17, and applies to all POAs executed with forwarders or other third parties prior to that Dec. 19 effective date. “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 in the CSMS message.

CBP is “recommending” that, if a broker has an existing POA signed by an importer client but that was “perhaps received indirectly through a freight forwarder [and] not from the importer,” the broker “contact the importer directly and request a confirmation from the importer that the terms of the POA remain amenable to them,” Delgado affirmed on the webinar.

Delgado said the change does not affect Broker A-Broker B POA relationships, which are still allowed. Also, other provisions in Part 111 on relationships with unlicensed parties remain unchanged, she said. “Brokers may still negotiate powers of attorney that include a clause waiving the transmittal of an entry or a bill for services,” for example, Delgado said.

But under the new regulations, “freight forwarders or other unlicensed entities, other third parties, do not have a direct role in negotiating the power of attorney,” Delgado said. “The freight forwarder may be copied in any communications; however, those communications must be directly between the broker and the importer of record.”