A Power of Attorney is necessary for brokers to perform customs business on behalf of a principal, including the filing of an informal entry. Customs business involves transactions with the Customs Service concerning the entry and admissibility of merchandise, its classification and valuation, and the payment of duties, taxes, or other charges assessed or collected by the Customs Service upon merchandise by reason of its importation.
A Power of Attorney is an essential document that evidences the authority granted by a grantor to a grantee to act in a fiduciary capacity for the principal, subject to their control (HRL 223119). Any language that accomplishes the purposes of the agency will suffice, provided it contains clear authorization to perform the duties specified. While the validity of the Power of Attorney is determined according to state law, CBP has established guidelines for the content and execution of the document. It is important to note that the Power of Attorney is not a contract between the importer and the broker. Rather, it is a “grant of authority” from the principal (importer) to the agent (broker) to perform certain acts on the principal’s behalf. The Terms and Conditions of Service, covering duties of the agent, compensation, etc., agreed to between the parties, constitute the contract, which may be either oral or in writing.
Broker Activities that Require a Power of Attorney
A broker needs a Power of Attorney to perform those activities defined as “customs business” on behalf and in the name of a principal (Section 141.46, CR). This includes the filing of an informal entry by a broker (HRL 221696).
Customs Business
“Customs business” is defined by statute [19 U.S.C. §1641 (a)(2)] as follows:
Activities concerning transactions with the Customs Service concerning the entry and admissibility of merchandise, its classification and valuation, the payment of duties, taxes, or other charges assessed or collected by the Customs Service upon merchandise by reason of its importation, or the refund, rebate, or drawback thereof. It also includes the preparation of documents or forms in any format and the electronic transmission of documents, invoices, bills, or parts thereof, intended to be filed with the Customs Service in furtherance of such activities, whether or not signed or filed by the preparer, or activities relating to such preparation, but does not include the mere electronic transmission of data received for transmission to Customs.
