Power of attorney training


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Basic level power of attorney training for day-to-day operations

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Power of attorney training

  1. 1. Powers of Attorney
  2. 2. POWER OF ATTORNEY CBP REGULATION/JAS USA POLICYBefore transacting Customs business in the name of his principal,a customhouse broker is required to obtain a valid power ofattorney to do so. He is not required to file the power of attorneywith a port director. Customhouse brokers shall retain powers ofattorney with their books and papers, and make them available torepresentatives of the Department of the Treasury.Before any employee of JAS USA can conduct US Customsbusiness on behalf of any client, a properly completed and signedpower of attorney is required. (19CFR141)
  3. 3. ACCEPTABLE POA FORMS• CBP 5291 may be used for giving power of attorney to transact Customs business.• If CBP 5291 is not available, either a general power of attorney with unlimited authority or a limited power of attorney as explicit in its terms and executed in the same manner as the CBP 5291.• JAS Forwarding USA Inc does have an electronic format available.
  4. 4. Revocation of Power of Attorney Any power of attorney shall be subject to revocation at any time by written notice given by the principle or by the port director.
  5. 5. Nonresident Corporation Foreign Power of AttorneyDefinition of Non-resident – an individual, partnership orcorporation that does not meet the definition of a resident.A power of attorney executed by a nonresident principal shall notbe accepted unless the agent designated thereby is a resident andis authorized to accept service of process against suchnonresident.Power of attorney shall be supported by documentationestablishing the authority of the grantor designated to execute thepower of attorney on behalf of the corporation. Validity of power of attorney – 5 years
  6. 6. Resident CorporationDefinition of Resident – is an individual who resides within, or apartnership with one or more of the partners reside within, theCustoms territory of the United States or the Virgin Islands of theUnited States, or a corporation incorporated in any jurisdictionwith the Customs territory of the United States or in the U.S.Virgin Islands.A power of attorney for a resident corporation shall be executedby a person duly authorized to do so. (i.e. president, vicepresident, treasurer or secretary). Validity of power of attorney – 5 years
  7. 7. PartnershipsA power of attorney granted by a partnership shall state thenames of all members of the partnership. One member of thepartnership may execute a power of attorney in the name of thepartnership for the transaction of all its Customs business.Limited Partnership – A power of attorney granted by a limitedpartnership need only state the names of the general partner whohave the authority to bind the firm unless the partnershipagreement provides otherwise. Validity of power of attorney – 2 years
  8. 8. Partnership requirements Validity of partnership power of attorney not to exceed 2 years from the date of execution A copy of the partnership agreement must accompany the power of attorney. For this purpose, a partnership or limited partnership means any business association recognized as such under the laws of the state where the association is organized. Change in Partners – When a new firm is formed by a change in membership, no power of attorney filed by the antecedent firm shall thereafter be recognized for any Customs purpose.
  9. 9. Importer Security Filing Limited Power of AttorneyLimited or general POA’s - A POA may be executed for thetransaction by an agent or attorney for a specified part or all theCustoms business of the principal.
  10. 10. LIMITED LIABILITY CORPORATIONS-LLC’sAs a general rule, LLC’s are managed by their members, unless the LLC electsto appoint managers to manage the company. In a member-managedcompany, the members are agents of the company with the authority to bindthe LLC in the ordinary course of its business. This authority would includeexecuting powers of attorney.In a manager-managed company, the mangers are the agents with suchbinding authority. Members do not have the power to bind the LLC in theircapacity as members in a manager-managed company. Therefore, thequestion of who within an LLC can execute powers of attorney will depend onits management structure. Validity period not to exceed 2 years. JAS USA requires copies of the LLC docs showing the list of members for the LLC.
  11. 11. Delegation to Subagents Sub POA’sCustomhouse brokers – A power of attorney executed in favor ofa licensed customhouse broker may specify that the POA is grantedto the broker to act through any of its licensed officers orauthorized employees.JAS USA will grant a sub-power of attorney under aboveconditions if an existing CBP permit does not exist in the port ofentry and if RLF is not possible in that port.Request should be in writing to compliance with Name and addressof broker being assigned and a copy of original power of attorney.
  12. 12. Identity Verification for Powers of Attorney By ensuring that each POA is valid, the broker joins US CBP on the national security frontlines in verifying the data used to screen what enters this country. Identity verification required for all types of companies and/or individuals. “Reasonable care” requires verification of the ALL POA signer’s identity. JAS USA requires an identity verification form to be completed by the party that obtains the POA. This form indicates that you have verified the person, who signed the POA, is in fact who they say they are.
  13. 13. Standards for Validation POA’s should be completed in person so that the grantor’s personal identification (driver’s license, passport, etc) can be reviewed. Foreign POA (FPOA”s should be completed in the presence of a JAS representative in the country of signing. Validating documents remain the same for FPOA’s. Verify that the importer’s name, importer number and IRS# or Social Security # on the POA match what appears on bond query. Check all parties screening to determine that POA grantor does not appear on any Government lists.
  14. 14. Additional Validation LLC’s & Partnerships Check applicable web sites 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
  15. 15. TEST:1. You must use a CBP 5291 for all Powersof Attorney?  True  False2. A Power of Attorney issued by a Partnership is valid for what period of time? a) 1 year b) 5 years c) 2 years d) Until revoked
  16. 16. 3. Which position listed below can execute a resident corporation Power of Attorney? a) General Manager b) President c) Receiving Manager d) All the above4. A valid Power of Attorney is required for a broker to conduct Customs business on behalf of a principle.  True  False
  17. 17. 5. A resident is considered to be….? a) An individual who resides within the customs territory of the United States and the US Virgin Islands b) A partnership with one or more of the partner who resides within the customs territory of the United States or the US Virgin Islands c) A corporation incorporated in any jurisdiction within the customs territory of the United States or the US Virgin Islands d) All the above6. All Power of Attorney’s must be filed with the port director.  True  False
  18. 18. 7. Customhouse brokers shall retain Power of Attorney’s with their books and papers and make them available to a representative of the Department of the Treasury.  True  False8. Verifying the Power of Attorney grantor’s identity and legal authority to enter into a POA is considered “reasonable care” for brokers.  True  False
  19. 19. 9. Which of the following is a way to validate a Power of Attorney? a) Check applicable websites to verify the POA grantor’s business and registration with state authorities b) If the principal uses a trade or fictitious name in doing business, confirm that the name appears on the POA c) Verify that the importer’s name and Employer Identification Number on the POA match what is in ACS. d) All the above10. A Power of Attorney can be revoked at anytime by written notice given to and received by the broker  True  False
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