CBP Says Brokers Should Not be Penalized for Not Following 2005 Guidance for Obtaining a Valid POA
U.S. Customs and Border Protection has posted a memorandum regarding its 2005 guidance for obtaining a valid power of attorney.
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(In 2005 CBP issued an administrative message suggesting the steps a broker may follow when validating a POA.)
NCBFAA Concerned that Guidance Has Inadvertently Become Standard Criteria
During arecent National Customs Brokers and Forwarders Association of America Customs committee meeting, the NCBFAA expressed concern that the 2005 guidance for validating a POA has inadvertently become standard criteria that the Broker Management Officers (BMOs) adhere to in ascertaining whether a broker demonstrates "responsible supervision and control."
Broker Should Not be Penalized for Not Following Guidance
CBP says that the 2005 guidance, which is reissued on CBP's website, contains suggested steps that a broker may follow when validating a POA. If the broker fails to follow the suggested steps in obtaining a valid POA, such failure does not require penalty action; however, a broker must be in possession of a valid POA when conducting "Customs business."
Suggested Steps for Validating a POA
CBP also reissued its 2005 guidance listing its suggested steps that brokers follow to validate a POA:
To the greatest extent possible, have POAs completed in person so the grantor's personal identification (driver's license, passport, etc.) can be reviewed.
Check applicable websites to verify the POA grantor's business and registration with State authorities.
If the principal uses a trade or fictitious name in doing business, confirm that the name appears on the POA.
Verify that the importer's name, importer number and Employer Identification Number (also known as the Federal Tax Identification Number) on the POA match what is in the Automated Commercial System.
Check whether the POA grantor is named as a sanctioned or restricted person or entity by the U.S. Government. (See the Bureau of Industry and Security's "Lists to Check.")
(See ITT's Online Archives or 04/21/05 news, 05042110, for BP summary of CBP's 2005 guidance.)
CBP contact- Alfred Morawski (202) 863-6505
CBP Memo (dated 07/17/09) available at http://www.cbp.gov/linkhandler/cgov/trade/trade_programs/broker/poa_clarification.ctt/poa_clarification.pdf
Reissued 2005 POA validation notice (dated 07/22/09) available at http://www.cbp.gov/xp/cgov/trade/trade_programs/broker/validating_poa.xml