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									                   presents...
               Power of Attorney


Please Note,
        Our Name is Changing...
             C.C.B.F.A.
      Chicago Custom Brokers & Forwarders Association


                       presents...
                Power of Attorney

                  February 8, 2007
            Mary Peglow, CCBFA President


     M. Jason Cunningham, Moderator; Tom Case,
Paul Anderson, Merit Tremper, & Brian Walsh, Panelists
    Power of Attorney
        Topics
1.Importance and Relevance of Power of
  Attorney Compliance to Brokers and
  Forwarders.
2.Legal Basis and Considerations of Power
  of Attorney for Customs Purposes
3.Practical Application of Power of Attorney
4.POA Customs Rulings Overview

    There are microphones around the room for
       your questions to panelists after the
                   presentation.           Sonnenberg &
                       Tom Case
Integrated Logistics Providers




   •TheImportance and
   Relevance of Preemptive
   Compliance to Brokers and
   Forwarders.

                                  Sonnenberg &
     Merit Tremper
       "Customer Satisfaction is our #1 Priority - Always!




Practical Applications of the
    Power of Attorney
 Regulatory Requirements



                                                             Sonnenberg &
     Brian Walsh


Customs Rulings Overview




                   Sonnenberg &
            C.C.B.F.A.
     Chicago Custom Brokers & Forwarders Association


                      presents...
                Power of Attorney

                   February 8, 2007
             Mary Peglow, CCBFA President

          M. Jason Cunningham, Moderator;
Tom Case, Paul Anderson, Merit Tremper, & Brian Walsh,
                      Panelists
                       Tom Case
Integrated Logistics Providers




   •TheImportance and
   Relevance of Preemptive
   Compliance to Brokers and
   Forwarders.
  POWER OF ATTORNEY:
          The
    Legal Foundation
presented by Paul S. Anderson
     Partner, Sonnenberg & Anderson
     Honorary Consul General of Norway
       Topics Covered
1.General Power of Attorney Legal Concepts that
  Apply in All Powers of Attorney.
2.Power of Attorney Legal Requirements under
  Customs Law.
3.Types of Powers of Attorney: General & Limited
4.Format of Power of Attorney
5.Special Considerations for Customs Powers of
  Attorney
6.Retention of Power of Attorney Documents
7.Shipper’s Export Declaration Power of Attorney
                                      Sonnenberg &
I. Power of Attorney
    General Legal
    Description &
     Obligations
         I. POWER OF ATTORNEY
               GENERALLY
Granting of Authority
  •   A POA is the authority, given in writing, which
      legally authorizes one party to act on behalf of
      the other party.
  •   It is a grant of authority or delegation and is
      not a contract.
  •   Person granting authority (grantor) is the
      ―principal‖ and the party to whom authority to
      act is granted is the ―agent‖ or grantee.
  •   The concept has its origin in common law
      which provides that an agent may be
      designated to act on one’s behalf.Sonnenberg &
        I. POWER OF ATTORNEY
              GENERALLY   (Continued)


•   Relationship between principal and agent.

        The grantee has a fiduciary obligation to
        act on behalf of the principal and
        safeguard the principal’s interests.

        As long as the agent acts within the
        designated scope of authority, liability shifts
        back to principal.

        An agent is controlled and directed by
        principal
                                         Sonnenberg &
         I. POWER OF ATTORNEY
               GENERALLY   (Continued)


Broker – Client Relationship

       Normal principles of agency law apply in the
       importer/broker Power of Attorney
       relationship.

         Broker acts as agent for principal.

         Broker as agent has no greater rights than
         principal. If principal could not sign a
         document, broker cannot either.

                                         Sonnenberg &
    I. POWER OF ATTORNEY
          GENERALLY   (Continued)




Acts performed within the scope of the agency
relationship are attributed to the principal.

   Scope of Authority – Express and Implied
   Authority.

   Specific instructions from principal – ―Do not
     sign this document.‖



                                    Sonnenberg &
    I. POWER OF ATTORNEY
          GENERALLY   (Continued)




Acts not within the scope of the agency
relationship and not authorized by the principal
are the responsibility of the agent.

    Situation where principal instructs broker to
    do something which is incorrect or illegal.

    Employee exceeds scope of authority



                                    Sonnenberg &
II. Power of Attorney
          --
  Customs Specific
    Considerations
             II. Power of Attorney -- Customs
                     Considerations
 Legal Source of Power
       •The power to sign documents and transact Customs
       Business on behalf of a principal is derived from the
       power of attorney and the Customs Brokers License
       granted to the individual or corporation.

19 CFR §111.1 “Customs Business”
  "Customs business" means those activities involving transactions with Customs concerning
  the entry and admissibility of merchandise, its classification and valuation, the payment of
  duties, taxes, or other charges assessed or collected by Customs on merchandise by
  reason of its importation, and the refund, rebate, or drawback of those duties, taxes, or
  other charges. "Customs business" also includes the preparation, and activities relating to
  the preparation, of documents in any format and the electronic transmission of documents
  and parts of documents intended to be filed with Customs in furtherance of any other
  customs business activity, whether or not signed or filed by the preparer. However,
  "customs business" does not include the mere electronic transmission of data received for
  transmission to Customs and does not include a corporate compliance activity.

                                                                     Sonnenberg &
         II. Power of Attorney -- Customs
                 Considerations
                                             (Continued)


Situations where a Power of Attorney is required.

          A POA is required for Customhouse broker to
          transact business on behalf of another. HRL
          225023 (2/26/94) and 19 CFR §141.46. A
          Customs Brokers License is also required in
          order to transact Customs business on behalf
          of another. 19 CFR §111.2.

          A POA is required where the employee of a
          broker will act on behalf of the firm.

                                          Sonnenberg &
         II. Power of Attorney -- Customs
                 Considerations
                                               (Continued)


Situations where a Broker’s License is not required.
         A Customs broker’s license is not required
         where:

           An importer transacts Customs business
           solely for its own account. 19 CFR
           §111.2(a)(2)(i).

           A person transacts business in connection
           with the entry or clearance of vessels, or
           other regulation of vessels under the
           navigation laws. 19 CFR §111.2(a)(2)(iii).
                                            Sonnenberg &
        II. Power of Attorney -- Customs
                Considerations
                                             (Continued)
License Exceptions (continued)
       Employees of a broker, acting solely for the
       employer, are not required to have a license
       where:
            The broker has authorized the employee to
            sign Customs documents by executing a
            power of attorney for that purpose; or
            The broker has filed a statement with the
            Port Director authorizing the employee to
            transact Customs business on the broker’s
            behalf. 19 CFR §111.2(a)(2)(ii)(A)(2).
       Other Exceptions: (FTZ, Non commercial
       shipments.)                      Sonnenberg &
          II. Power of Attorney -- Customs
                  Considerations
                                                   (Continued)

Working with Forwarders or Other Unlicensed Persons

 •19   CFR §111.24 - Records Confidential.
       The records referred to in this part and pertaining to
       the business of the clients serviced by the broker are
       to be considered confidential, and the broker must
       not disclose their contents or any information
       connected with the records to any persons other
       than those clients, their surety on a particular entry,
       and the Field Director, Regulatory Audit Division, the
       special agent in charge, the port director, or other
       duly accredited officers or agents of the United
       States, except on subpoena by a court of competent
       jurisdiction.
                                                Sonnenberg &
         II. Power of Attorney -- Customs
                 Considerations
                                                           (Continued)

Working with Forwarders or Other Unlicensed Persons
•19 CFR §111.36(a) & (b)
 (a) Employment by unlicensed person other than importer. When
 a broker is employed for the transaction of customs business by
 an unlicensed person who is not the actual importer, the broker
 must transmit to the actual importer either a copy of his bill for
 services rendered or a copy of the entry, unless the merchandise
 was purchased on a delivered duty-paid basis or unless the
 importer has in writing waived transmittal of the copy of the entry
 or bill for services rendered.

 (b) Service to others not to benefit unlicensed person. Except as
 otherwise provided in paragraph (c) of this section, a broker must
 not enter into any agreement with an unlicensed person to
 transact customs business for others in such manner that the fees
 or other benefits resulting from the services rendered for others
 inure to the benefit of the unlicensed person.        Sonnenberg &
            II. Power of Attorney -- Customs
                    Considerations
                                                                         (Continued)
Working with Forwarders or Other Unlicensed Persons
  •19 CFR §111.36(c)
    (c) Relations with a freight forwarder. A broker may compensate a freight
    forwarder for referring brokerage business, subject to the following conditions:
    (1) The importer or other party in interest is notified in advance by the forwarder
    or broker of the name of the broker selected by the forwarder for the handling of
    his Customs transactions;
    (2) The broker transmits directly to the importer or other party in interest:
    (i) A true copy of his brokerage charges if the fees and charges are to be collected
    by or through the forwarder, unless this requirement is waived in writing by the
    importer or other party in interest; or
    (ii) A statement of his brokerage charges and an itemized list of any charges to be
    collected for the account of the freight forwarder if the fees and charges are to be
    collected by or through the broker;
    (3) No part of the agreement of compensation between the broker and the
    forwarder, nor any action taken pursuant to the agreement, forbids or prevents
    direct communication between the importer or other party in interest and the
    broker; and
    (4) In making the agreement and in all actions taken pursuant to the agreement,
    the broker remains subject to all other provisions of this part.




                                                                    Sonnenberg &
III. Types of Powers of
  Attorney & Relevant
  Language Required
III. Types of Powers of Attorney &
   Relevant LAnguage Required
                                      (Continued)



General Power of Attorney

Limited Power of Attorney – Limited in scope,
authority or geographical area.

  CF 5291

  Alternate Formats

  Suggested format in Regulations 19 CFR
  §141.32.

                                   Sonnenberg &
III. Types of Powers of Attorney &
   Relevant LAnguage Required
                                       (Continued)


Specific Authorizations in a typical POA.

  Endorsement of Bills of Lading.

  General endorsement, signing and attestation
  power related to entry documents.

  Receipt, endorsement and collection of
  checks. See 19 CFR §111.41.

  Sign, seal and deliver any bond required by
  law.
                                    Sonnenberg &
III. Types of Powers of Attorney &
   Relevant LAnguage Required
                                           (Continued)

POA Language and Related Issues
  Language does not have to match exactly the
  language of CF 5291.
  Must say that principal grants authority for the
  broker to act as its agent for the transaction of
  Customs business.
  Alternative method of payment (19 CFR
  §111.29(b)).
  Designation to accept service of process where
  importer / principal is a non-resident.
  Delegation authorization to appoint other
  brokers ―to authorize other Customs brokers to
  act as grantor’s agent.‖            Sonnenberg &
III. Types of Powers of Attorney &
   Relevant LAnguage Required
                                          (Continued)

Subagents (19 CFR §141.43)

  Generally, a holder of a POA for a resident
  principal cannot appoint a subagent except for
  the purpose of executing Shipper’s Export
  Declarations. 19 CFR §141.43(a)

  Agent holding a POA from a nonresident
  principal may execute a POA delegating
  authority to a subagent only if the original POA
  contains specific authority from the principal for
  the appointment of a subagent or subagents.
  Any subagent appointed must be authorized to
  accept service of process. 19 CFR §141.43(b).
                                       Sonnenberg &
IV. Form & Length of
  Power of Attorney
     IV. Form of Power of Attorney



Written original

  Pre-printed form – CF 5291

  Form specified in Customs Regulations – 19 CFR
  §141.32.




                                   Sonnenberg &
     IV. Form of Power of Attorney
                                       (Continued)




Faxed copies



 Are they valid? Under what circumstances?



 What requirements are there with a faxed copy?


                                   Sonnenberg &
  IV. Form of Power of Attorney
                                       (Continued)




Duration of POA

 Perpetual until revoked

 Special rules where principal is a partnership
 – 2 years

 Situation of ―active‖ client.



                                   Sonnenberg &
 V. Special Issues
Regarding Powers of
     Attorney
   V. Special Issues Regarding
        Power of Attorney



Who should sign the POA on behalf of the
principal?

  Officer of the corporation

  Must be ―duly‖ authorized to execute POA.

  Attestation / Notarization - generally not
  required


                                     Sonnenberg &
V. Special Issues Regarding Power of
               Attorney
                                        (Continued)




 Foreign and non-resident POA’s

   Agent must be authorized to receive service
   of process.

   Proof of authorization of principal required
   where non-resident corporation is not
   qualified to do business in state where broker
   is located.


                                    Sonnenberg &
 VI. Retention of
Power of Attorney
   Documents
 VI. Retention of Power of Attorney
             Documents




Must be retained until revoked



Revoked POA’s and letters of revocation must
be kept for five years after the revocation date.




                                     Sonnenberg &
 VII. Powers of
  Attorney for
Shipper’s Export
 Declarations
   VII. Power of Attorney for
  Shipper’s Export Declaration




The preparation and filing of a Shipper’s Export
Declaration (SED) falls under the jurisdiction of
the Bureau of the Census, Dept. of Commerce.

As a result, preparing and filing an SED is not
―Customs business‖, and does not require a
Customs brokers license or a Customs POA.



                                    Sonnenberg &
   VII. Power of Attorney for
  Shipper’s Export Declaration
                                      (Continued)




The party filing the SED on behalf of the
exporter must still have a POA issued by the
Principal Party in Interest (PPI).

This function can be done by either a freight
forwarder or a party who is both a freight
forwarder and Customs broker.

Set forth below is a copy of a POA for an SED.


                                    Sonnenberg &
Conclusion
    &
Summary
  VIII. Conclusion & Summary
The Customs POA must be in writing.
The language of the POA determines the scope of authority.
The broker needs a POA to transact Customs business on behalf of
others.
The principal controls and directs the agent, and the agent has a
fiduciary duty to the principal.
A POA must be properly executed.
POA does not have to exactly follow CF 5291 or the form set out at
19 CFR §141.32.
Certain language is recommended for inclusion such as notification
of alternative methods of payment, authority to appoint other
brokers to act as agents for the principal, general endorsement and
refund powers and designation of agent for service of process for
non-resident principals.
Faxed copies are acceptable, but recommended to follow-up with
originals.
POA’s are valid until revoked with the exception of partnership
POA’s which are valid for 2 years.

                                                     Sonnenberg &
•This   presentation is available on our website:


•www.sonnander.com




                                        Sonnenberg &
WHO SIGNS YOUR
POWER OF ATTORNEY?
presented by Merit Tremper
     Import Manager, RIM Logistics
     Director CCBFA
                      Topics Covered
I) Creating a Power of Attorney
   A) Selecting the Right Form.
   B) How to Complete Custom Form 5291.
   C) Common Mistakes.
   D) Additional Considerations
II) Validating the Power of Attorney.
   A) Why Important
   B) Signatures - Who must sign the form?
   C) Verifying the Information your client provides.
III) Modifying or Obtaining a New Power of Attorney.
   A) Importer’s Change of Name or Legal Identity.
   B) Revocation of Power of Attorney.
IV)Record keeping
V) More Sources of Information
       Section I:
Creating a Power of
     Attorney
    A. Selecting the Right Form
      I) Creating a Power of Attorney
              A) Selecting the Right Form

There are many different sources you can use when creating a Power of
Attorney for you clients to sign, for example:
          1. Create your own based upon CFR and state law.
         2.    Use Customs Form 5291.
         3.    Use NCBFFA Form (for NCBFFA members).
          •     Additions: Appoint other brokers to act as agent of principal; Allow
                for broker’s collection and endorsement of duty refunds from
                Customs; Acceptance of service of process for foreign grantors; 19
                CFR §11.29(b) notice included.

      19 CFR §141.32 Form for power of attorney.
      “Customs Form 5291 may be used for giving power of attorney to
      transact Customs business. If a Customs power of attorney is not
      on a Customs Form 5291, it shall be 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 a
      Customs Form 5291.”
      Section I:
Creating a Power of
     Attorney
     B. Completing the Form
I) Creating a Power of Attorney
   B) How To Complete CF 5291
I) Creating a Power of Attorney
   B) How To Complete CF 5291
I) Creating a Power of Attorney
   B) How To Complete CF 5291
     The following is an example of an acceptable general power of
                     attorney with unlimited authority:
              KNOW ALL MEN BY THESE PRESENTS, THAT
                        ______________________
                              (Name of principal)
                         ____________________ ,
 (State legal designation, such as corporation, individual, etc.) residing
 at _______________ and doing business under the laws of the State
           of ______, hereby appoints ____________________
                  (Name, legal designation, and address)
  as a true and lawful agent and attorney of the principal named above
   with full power and authority to do and perform every lawful act and
thing the said agent and attorney may deem requisite and necessary to
 be done for and on behalf of the said principal without limitation of any
    kind as fully as said principal could do if present and acting, and
 hereby ratify and confirm all that said agent and attorney shall lawfully
 do or cause to be done by virtue of these presents until and including
    ______, (date) or until notice of revocation in writing is duly given
                              before that date.
                         Date __________, 19__;.
                         (Principal's signature)
            Section I:
Creating a Power of
     Attorney
  C. Common Mistakes Completing the Form
I) Creating a Power of Attorney
    C) Common Mistakes

 1.Use of fictitious or non-legal name
 2.Failure to validate signature / authority to sign (next section)
 3.Omission of phrase ―which may act through any of its licensed officers or
   employees ...‖
 4.Failure to authorize action in ALL customs districts.
 5.Attempts to authorize ―subagents‖
 6.Failure to notify grantor in writing when working with other brokers.
 7.Failure to create systems to ensure proper PoA’s on file, revocations
   tracked, and PoA’s kept up to date.
 8.Failure to properly validate non-resident Power of Attorney. Failure to
   include acceptance of service (unaltered by non-resident!) in Power of
   Attorney.
 9.Signature by unauthorized corporate person (e.g. President of a
   Division, without board resolution.
 10.Misspelling grantor’s or broker’s name, incorrect abbreviation of names,
   failing to sign or date the Power of Attorney, failing to check boxes,
               Section I:
Creating a Power of
     Attorney
D. Additional Considerations in Completing the Form
 I) Creating a Power of Attorney
      D) Additional Considerations



             Designation of Customs Ports

  CFR §141.44 Designation of Customs ports in which
•19
power of attorney is valid.

•Unless   a power of attorney specifically authorizes the agent to act
thereunder at all Customs ports, the name of each port where the
agent is authorized to act thereunder shall be stated in the power of
attorney. The power of attorney shall be filed with any port director, in
a sufficient number of copies for distribution to each port where the
agent is to act, unless exempted from filing by §141.46. The port
director with whom a power of attorney is filed, irrespective of whether
his port is named therein, shall approve it, if it is in the correct form
and the provisions of this subpart are complied with, and forward any
copies intended for other ports as appropriate.
I) Creating a Power of Attorney
    D) Additional Considerations



             Working with Other Brokers
  •―Power   to Appoint‖ other brokers clause.
     In order to work with other brokers, the Power of
  Attorney clause should contain the clause ―...to authorize
  other Customs brokers to act as grantor’s agent...‖
      Broker A must then provide Broker B with a copy of the
  original PoA along with a subsidiary PoA signed by Broker
  A made out on behalf of and in the name of the grantor.
  Must be signed by Officer of broker A.
I) Creating a Power of Attorney
    D) Additional Considerations


  •Checklist for   Working with Other Brokers:

  1.Does Power of Attorney contain power to appoint other
  brokers?
  2.Does secondary Power of Attorney specify district(s) in which
  appointed broker may act or does it say ―all?‖
  3.Does appointed broker have a copy of original Power of
  Attorney?
  4.Is the subsidiary Power of Attorney made out in the name of
  the grantor, not the issuing broker’s name?
  5.Are all names correct?
  6.Is the subsidiary Power of Attorney signed by a licensed
  officer of the issuing broker?
  7.Has the grantor been notified of the subsidiary Power of
  Attorney as well as the identity of the s subsidiary broker?
I) Creating a Power of Attorney
    D) Additional Considerations



         Working with Freight Forwarders
  1. Power of Attorney does not confer right to conduct ―Customs
     Business‖ on Freight Forwarder that does not have a
     Customs license.

  2. Export Powers of Attorney. A freight forwarder must comply
     with 15 CFR 30.4

      ―To perform any act or condition which may be required or
      authorized by law or regulation of the United States in connection
      with any commodity shipped, consigned or forwarded by the grantor;

      ―To endorse or negotiate any draft, check, or warrant drawn to the
      order of the grantor in connection with the exportation of any
      commodity shipped, consigned or forwarded by the grantor.‖
        Section II:



Validating a Power
    of Attorney
   A. The Importance of Validation
  II) Validating a Power of Attorney
 A) Importance of Validation Procedures by the Broker

•Why should a Broker Always Validate the Power of
Attorney?

 Because the Power of Attorney (POA) can authorize the
movement of conveyances and merchandise into the United
States, it is critical that it be examined carefully. By ensuring that
each POA is valid, the broker joins U.S. Customs and Border
Protection on the national security front lines in verifying the data
used to screen what enters this country.

  In addition to security, the broker’s own professional business
interests 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.
         Section II:



Validating a Power
    of Attorney
  B. Who Signs the Power of Attorney?
 II) Validating a Power of Attorney   B) Who Signs the
Power of Attorney Form on Behalf of the Importer?


       Who Can Not Sign the Power of Attorney?

•19 CFR §141.31 General requirements and
definitions.

•(c)Minor agents. A power of attorney to a minor shall
not be accepted.
 II) Validating a Power of Attorney   B) Who Signs the
Power of Attorney Form on Behalf of the Importer?


         When the Importer is an Individual



 •AnIndividual using his Social Security number
 can sign a Power of Attorney as an individual.

  Make sure you get a copy of his drivers license and
 he signs in front of an employee of the Customs
 Broker.
 II) Validating a Power of Attorney   B) Who Signs the
Power of Attorney Form on Behalf of the Importer?

When the Importer of Record is a Partnership


•§ 141.39 Partnerships.
•(a)(1) General. A power of attorney granted by a partnership shall
state the names of all members of the partnership. One member of the
partnership may execute a power of attorney in the name of the
partnership for the transaction of all its Customs business.
•(2) Limited partnership. A power of attorney granted by a limited
partnership need only state the names of the general partners who
have authority to bind the firm unless the partnership agreement
provides otherwise. 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.
•(b) 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.
     II) Validating a Power of Attorney   B) Who Signs the
    Power of Attorney Form on Behalf of the Importer?


When the importer is a Corporation, you must first determine
whether it is a either a U.S. or a non-resident corporation.

       •19    CFR 141.31 General requirements and definitions.

       •(d) Definitions of resident and nonresident. For the purposes of
       this subpart, ―resident‖ means an individual who resides within, or
       a partnership one or more of whose partners reside within, the
       Customs territory of the United States or the Virgin Islands of the
       United States, or a corporation incorporated in any jurisdiction
       within the Customs territory of the United States or in the Virgin
       Islands of the United States. A ―nonresident‖ means an individual,
       partnership, or corporation not meeting the definition of
       ―resident.‖
 II) Validating a Power of Attorney   B) Who Signs the
Power of Attorney Form on Behalf of the Importer?



•19   CFR §141.38 Resident corporations.
•A power of attorney shall not be required if the person
signing Customs documents on behalf of a resident
corporation is known to the port director to be the
president, vice president, treasurer, or secretary of the
corporation. When a power of attorney is required for
a resident corporation, it shall be executed by a
person duly authorized to do so.
 II) Validating a Power of Attorney   B) Who Signs the
Power of Attorney Form on Behalf of the Importer?



•19   CFR §111.1 Definitions.

•  Officer. ―Officer‖, when used in the context of an
association or corporation, means a person who has
been elected, appointed, or designated as an officer
of an association or corporation in accordance with
statute and the articles of incorporation, articles of
agreement, charter, or bylaws of the association or
corporation.
  II) Validating a Power of Attorney   B) Who Signs the
 Power of Attorney Form on Behalf of the Importer?


Special Considerations for Corporate Powers of Attorney
    Get a copy of the page of the Corporation Papers that
    list the Corporate Officers of the Company.
    • While Customs usually accepts Powers of Attorney
      documents signed by President, Vice President,
      Secretary, and Treasurer. Other modern titles such
      as CFO, CEO, COO, etc. may or may not have
      authority unless named as an officer in the Corporate
      Papers.
    If you don’t get that page you will not know if you hold a
    valid Power of Attorney.
 II) Validating a Power of Attorney   B) Who Signs the
Power of Attorney Form on Behalf of the Importer?



•19   CFR §141.36 Nonresident principals in general.
•A power of attorney executed by a nonresident principal
shall not be accepted unless the agent designated thereby is
a resident and is authorized to accept service of process
against such nonresident.


•19CFR §141.37 Additional requirements for nonresident
corporations.
•   If a nonresident corporation has not qualified to conduct
business under state law in the state in which Customs district
the agent is empowered to perform the delegated authority, the
power of attorney shall be supported by documentation
establishing the authority of the grantor designated to execute
the power of attorney on behalf of the corporation.
 II) Validating a Power of Attorney   B) Who Signs the
Power of Attorney Form on Behalf of the Importer?
            Section II:



Validating a Power
    of Attorney
 C. Verifying the Information Clients Provide
 II) Validating a Power of Attorney              C) Verifying the
Information Clients Provide

•   Here are some ways the broker can validate a Power of
    Attorney:
1. To the greatest extent possible, have POAs completed in person so
   the grantor’s personal identification (driver’s license, passport, etc.)
   can be reviewed.
2. Check applicable Web sites to verify the POA grantor’s business
   and registration with State authorities.
3. If the principal uses a trade or fictitious name in doing business,
   confirm that the name appears on the POA.
4. 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 ACS.
5. 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, U.S. Department of Commerce)
 II) Validating a Power of Attorney   C) Verifying the
Information Clients Provide



•How do brokers verify the IRS / importer number
provided by an importer?

•TheNational Finance Center (―NFC‖) confirmed the
forms NFC will accept for IRS verification. It MUST be
a Federal form, not a state form, and the accepted
forms are listed below:

•147C, 1040, 2363, 941V, SS-4, 1065, 8109, 8109C,
7004, 1096, 1120, 1120S
  II) Validating a Power of Attorney                                             C) Verifying the
 Information Clients Provide

•http://www.bis.doc.gov/ComplianceAndEnforcement/ListsToCheck.htm

•Lists   To Check
•The   following lists may be relevant to your export or reexport transaction.
•Denied    Persons List
A list of individuals and entities that have been denied export privileges. Any dealings with a party on this list that
would violate the terms of its denial order is prohibited.
•Unverified     List
A list of parties where BIS has been unable to verify the end use in prior transactions. The presence of a party on
this list in a transaction is a ―red flag‖ that should be resolved before proceeding with the transaction.
•Entity List
A list of parties whose presence in a transaction can trigger a license requirement under the Export Administration
Regulations. The list specifies the license requirements that apply to each listed party. These license
requirements are in addition to any license requirements imposed on the transaction by other provisions of the
Export Administration Regulations.
•Specially   Designated Nationals List
A list compiled by the Treasury Department, Office of Foreign Assets Control (OFAC). OFAC’s regulations may
prohibit a transaction if a party on this list is involved. In addition, the Export Administration Regulations require a
license for exports or reexports to any party in any entry on this list that contains any of the suffixes ―SDGT‖,
―SDT‖, or ―FTO‖.
•Debarred   List
A list compiled by the State Department of parties who are barred by §127.7 of the International Traffic in Arms
Regulations (ITAR) (22 CFR §127.7) from participating directly or indirectly in the export of defense articles,
including technical data or in the furnishing of defense services for which a license or approval is required by the
ITAR.
•Nonproliferation Sanctions
Several lists compiled by the State Department of parties that have been sanctioned under various statutes. The
Federal Register notice imposing sanctions on a party states the sanctions that apply to that party. Some of these
sanctioned parties are subject to BIS’s license application denial policy described in §744.19 of the EAR (15 CFR
§744.19).
          Section III:
Modifying or Creating a
New Power of Attorney
    A. Change of Name or Legal Identity
 III) Modifying or Creating a New Power of Attorney. A)
Importer’s Change of Name or Legal Identity

   •When   an importer merely changes its name, but not its
   legal identity, the Power of Attorney remains valid.
        ―Amalgamated, Inc.‖ is purchased by ―Big Buyer, Inc‖ but
        continues to operate as ―Amalgamated, Inc., a subsidiary
        of Big Buyer, Inc.‖ is merely a name change but the legal
        entity ―Amalgamated, Inc.‖ continues, and the Power of
        Attorney remains valid.
        ―Amalgamated, Inc.‖merges with ―Big Buyer, Inc‖ and
        continues to exist as ―Amalgamated, Inc.‖ ―Amalgamated,
        Inc.‖ continues, and the Power of Attorney remains valid.
        ―Apple Computer, Inc.‖ merely changes its name to
        ―Apple, Inc.‖ -- no new power of attorney is needed.
 III) Modifying or Creating a New Power of Attorney. A)
Importer’s Change of Name or Legal Identity

   •When  an importer changes its legal identity, the Power of
   Attorney becomes invalid and a new PoA must be issued
   by the new legal entity.
        ―Amalgamated, Inc.‖ is purchased by ―Big Buyer, Inc‖ but
        continues to operate as ―Amalgamated, a division of Big
        Buyer, Inc.‖ is a change in the legal entity and a new
        Power of Attorney will be required from Big Buyer, Inc.
        ―Amalgamated, Inc.‖ and ―Big Buyer, Inc‖ merge to form
        ―Big Amalgamated Buyer, Inc.‖ This is a change in the
        legal entity and will require a new Power of Attorney.
 III) Modifying or Creating a New Power of Attorney. A)
Importer’s Change of Name or Legal Identity

             when a broker merely changes its name the PoA
   •Similarly,
   remains valid, but when it changes its legal identity, it
   must either:
   •(1)   Receive a new Power of Attorney from the importer, or
   •(2)If allowed under the terms of the original Power of
   Attorney, grant or assign the Power of Attorney to the new
   legal entity.
            This can be accomplished when the original Power of
           Attorney contains a ―power to appoint‖ other brokers.
           Old entity must appoint powers to new entity after new
           entity comes into existence, but before old entity ceases
           to exist and before new entity conducts ―customs
           business‖ or performs any actions under the Power of
           Attorney.
           Section III:
Modifying or Creating a
New Power of Attorney
     B. Revocation of Power of Attorney
  III) Modifying or Creating a New Power of Attorney. B)
 Revocation of the Power of Attorney


  •19 CFR §141.35 Revocation of power of
  attorney.
  •Any power of attorney shall be subject to revocation at
  any time by written notice given to and received by the
  port director.


  Make sure you keep this letter revoking your Power
of Attorney next to the revoked power of attorney
document. This is to ensure you don’t clear cargo in
error when your Power of Attorney is revoked.
   Section IV:
Record Keeping
IV) Record Keeping Requirements.




 •19CFR §141.46 Power of attorney retained by
 customhouse broker.
 •Before  transacting Customs business in the name of his
 principal, a customhouse broker is required to obtain a valid
 power of attorney to do so. He is not required to file the
 power of attorney with a port director. Customhouse brokers
 shall retain powers of attorney with their books and papers,
 and make them available to representatives of the
 Department of the Treasury ...
IV) Record Keeping Requirements.




•19   CFR §141.34 Duration of power of attorney.
•Powers   of attorney issued by a partnership shall be
limited to a period not to exceed 2 years from the date of
execution. All other powers of attorney may be granted for
an unlimited period
   IV) Record Keeping Requirements.


•19    CFR §111.23 Retention of records.

•(a)Place and period of retention—(1) Place. Records must be retained by
a broker in accordance with the provisions of this part and part 163 of this
chapter within the broker district that covers the Customs port to which
they relate unless the broker chooses to consolidate records at one or
more other locations, and provides advance notice of that consolidation to
Customs, in accordance with paragraph (b) of this section.

•(2)Period. The records described in paragraph (a)(1) of this section, other
than powers of attorney, must be retained for at least 5 years after the date
of entry. Powers of attorney must be retained until revoked, and
revoked powers of attorney and letters of revocation must be
retained for 5 years after the date of revocation or for 5 years after
the date the client ceases to be an “active client” as defined in
§111.29(b)(2)(ii), whichever period is later. When merchandise is
withdrawn from a bonded warehouse, records relating to the withdrawal
must be retained for 5 years from the date of withdrawal of the last
merchandise withdrawn under the entry
      Section V:
Additional Resources
V) Sources of Additional Information


    U.S. Customs and Border Protection Website:
   http://www.cbp.gov
    Customs Rulings via CROSS system.
    Customs Broker Management Branch, Trade
   Compliance & Facilitation, Office of Field Operations:
   (202) 344-2580.
    For members of NCBFFA, 1995 publication entitled
   ―Using a Power of Attorney: A practical, Legal &
   Regulatory Guide for Brokers and Freight Forwarders‖
A copy of this presentation will be
available on the Customs Brokers
             Website.

        www.CCBFA.org
POA Rulings Overview

         Brian F. Walsh
 Barnes, Richardson & Colburn
        (312) 565-2000
 bwalsh@barnesrichardson.com
  www.barnesrichardson.com
CROSS

> Search for “Power of Attorney.”
> About 50 Rulings
> Oldest: July 16, 1991
> Most recent: July 15, 2005
> Rulings break out into distinct categories
Drawback

> Who can claim drawback?
> Clarification of the parties to the claim
> Who can sign the documents?
NAFTA

> Who can sign NAFTA certificate?
> Who can correct NAFTA certificate?
Bonds

> Who can execute a bond?
> Is a particular limited POA sufficient to allow
  for execution of a bond?
Customs Business

> Whether consultants and messengers need
  to be licensed
1520 (c) and other unrelated issues

> Power of Attorney language comes up
  peripherally
Ruling Categories

> We are going to skip the previous categories
  and focus on the categories in the following
  slides
Billing

> What should be the flow of funds in a multi-
  broker transaction?
> Who should receive the bills?
> Can the broker deposit refund checks?
Employer - Employee

> Can a broker work for more than one firm?
> Can a broker be the license holder for more
  than one firm?
Sufficiency of form

> Facsimile copies
> Ultimate consignees
Broker A – Broker B

> Authority issues that can arise in multiple
  broker transactions
Billing: HQ 225507, December 7, 1994

> Canadian CHB (Parent Co.)
> U.S. CHB (U.S. Subsidiary)
> Canadian shipper/importer
> POA secured directly by U.S. broker
> Billing may not go through Canadian Parent
  must be direct to importer
Billing: HQ 113794, February 4, 1997

> CHB may endorse and deposit refund
  checks into its own account:
  > The check is made payable to an importer, care
    of the CHB
  > The importer has given a power of attorney “to
    receive, endorse and collect checks issued for
    Customs duty refunds in grantor’s name drawn
    on the Treasurer of the United States
Billing: HQ 113794, February 4, 1997

> The importer has a running account with the CHB
  with a current balance owing to the CHB.
> The CHB endorses the importer payee’s name
  upon the check below which the CHB endorses its
  own name.
> The CHB credits the importer’s account in the
  monetary amount of the check.
> The CHB deposits the check in its own account
Billing: HQ 115080, September 14, 2000

>   FF refers business to CHB
>   FF obtains POA on behalf of CHB
>   CHB pays FF referral fee
>   Payment of Fee okay, if:
     > Importer notified in advance as to broker
       selected
     > CHB transmits directly to importer statement of
       charges
Billing: HQ 115080, September 14, 2000

  > No part of the agreement between FF and CHB
    shall prevent direct communication between
    CHB and importer
Employer/Employee: HQ 222573, March 8, 1991

> A person may be employed by more than
  one brokerage if employment is during non-
  concurrent hours
> A qualifying license holder for one firm may
  not be the qualifying license holder for a
  second firm, but may be an employee
  subject to supervision and control
Employer/Employee: HQ 225006, February 15,
1994

> Licensed broker has his own firm
> Also works for other firm as an employee
> Paid a salary and on the list of employees
  submitted to Customs
> If a bona fide employee it is not necessary to
  disclose the relationship to the importer
Sufficiency of form: HQ 222743, July 16, 1991;
HQ 115616, April 8, 2002

> Whether CHB satisfies the requirement to
  maintain a POA by keeping faxes?
> CHB may begin transacting Customs
  business upon receipt of a fax
> Facsimile copies may be retained as original
  documents
Sufficiency of form: HQ 231493, December 15
2006
> Ultimate consignee is not the importer of
  record
> Broker identifies consignee under 19 CFR
  24.5 and 142.3(a)(6)
> Broker is not required to obtain POA from
  ultimate consignee as there is no principal-
  agent relationship
Broker A-Broker B: HQ 225375, October 31, 1994

> FF receives POA from Importer
> POA contains language permitting FF to
  authorize other CHBs to act as grantor’s
  agent.
> FF acting under importers POA may issue
  another POA appointing CHB as importer’s
  agent
Broker A-Broker B: HQ 223453, January 21, 1992

> May a POA name more than one CHB as
  agent? No
> May Broker A appoint an outport Broker B?
  Only if POA specifically allows it
     C.C.B.F.A.
  Chicago Custom Brokers & Forwarders Association




     Questions?
Please Use the Microphones
       for Questions



               February 8, 2007
        Mary Peglow, CCBFA President
       Moderator: M. Jason Cunningham

								
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