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

1. Powers of Attorney

2. POWER OF ATTORNEY
CBP REGULATION/JAS USA POLICY
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.
Before any employee of JAS USA can conduct US Customs
business on behalf of any client, a properly completed and signed
power of attorney is required. (19CFR141)

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. 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. Nonresident Corporation
Foreign Power of Attorney
Definition of Non-resident – an individual, partnership or
corporation that does not meet the definition of a resident.
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.
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.
Validity of power of attorney – 5 years

6. Resident Corporation
Definition of Resident – is an individual who resides within, or a
partnership with one or more of the 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
with the Customs territory of the United States or in the U.S.
Virgin Islands.
A power of attorney for a resident corporation shall be executed
by a person duly authorized to do so. (i.e. president, vice
president, treasurer or secretary).
Validity of power of attorney – 5 years

7. Partnerships
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.
Limited Partnership – A power of attorney granted by a limited
partnership need only state the names of the general partner who
have the authority to bind the firm unless the partnership
agreement provides otherwise.
Validity of power of attorney – 2 years

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. Importer Security Filing
Limited Power of Attorney
Limited or general POA’s - A POA may be executed for the
transaction by an agent or attorney for a specified part or all the
Customs business of the principal.

10. LIMITED LIABILITY CORPORATIONS-LLC’s
As a general rule, LLC’s are managed by their members, unless the LLC elects
to appoint managers to manage the company. In a member-managed
company, the members are agents of the company with the authority to bind
the LLC in the ordinary course of its business. This authority would include
executing powers of attorney.
In a manager-managed company, the mangers are the agents with such
binding authority. Members do not have the power to bind the LLC in their
capacity as members in a manager-managed company. Therefore, the
question of who within an LLC can execute powers of attorney will depend on
its 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. Delegation to Subagents
Sub POA’s
Customhouse brokers – A power of attorney executed in favor of
a licensed customhouse broker may specify that the POA is granted
to the broker to act through any of its licensed officers or
authorized employees.
JAS USA will grant a sub-power of attorney under above
conditions if an existing CBP permit does not exist in the port of
entry and if RLF is not possible in that port.
Request should be in writing to compliance with Name and address
of broker being assigned and a copy of original power of attorney.

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. 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. 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. TEST:
1. You must use a CBP 5291 for all Powersof Attorney?
 True
 False
2. 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. 3. Which position listed below can execute a resident corporation Power of
Attorney?
a) General Manager
b) President
c) Receiving Manager
d) All the above
4. A valid Power of Attorney is required for a broker to conduct Customs business
on behalf of a principle.
 True
 False

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 above
6. All Power of Attorney’s must be filed with the port director.
 True
 False

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
 False
8. 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. 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 above
10. A Power of Attorney can be revoked at anytime by written notice given to and
received by the broker
 True
 False