Power of Attorney Terms To Know

The customs brokerage world is full of terminology. Last week, we focused on terminology dealing with Customs Border Protection (CBP). This week, we are going to focus on terminology importers should know about a Power of Attorney. All importers must have a Power of Attorney (POA). The Power of Attorney allows customs brokers to represent your business and conduct customs brokerage business for you. The National Customs Brokers & Forwarders Association of America, Inc. is the voice of the customs brokerage industry and informs companies of the importance of the Power of Attorney. The following are Power of Attorney terms to know when importing with a customs broker.

Principal

The name of the importer executing the Power of Attorney is the principal, also referred to as the “grantor”. As the importer, the Power of Attorney is created for you.Therefore, you are the principal and the grantor. Even if someone else is filling out the form for you, the importer is still the principal. Restrictions can be placed in the Power of Attorney by the principal. This is called a Limited Power of Attorney (LPOA) and can restrict the authority the agent has. In the case of a Power of Attorney with a customs broker, the importer has the agent to handle all of their customs brokerage matters.

Agent

The name of the customs broker/forwarder in whose favor the Power of Attorney is executed is the agent, also referred to as the “grantee”. Agents represent the importer in all customs brokerage matters when it comes to importing goods into the United States. The agent will be able to take legal actions the principal can take with a power of attorney. This includes opening and closing bank accounts. When dealing with a customs broker, once the power of attorney is signed, you authorize the customs brokerage firm and other specifically authorized employees to make decisions on your behalf regarding customs brokerage matters.

Non-resident Importer

This term refers to companies that are authorized under the laws of any state or insular possessions to do business in the United States. They are not doing business in the customs district where the entry is filed.  Non-resident importer also refers to foreign companies that are not authorized to do business in the United States. Non-resident importers must fill out a power of attorney to start getting their imports cleared at customs. AFC International, LLC is here to assist you with the customs brokerage terminology you need to know. Our Power of Attorney form can help you further understand the terminology needed to successfully import your goods into the United States. Still have questions about filling out your Power of Attorney form? Leave us comment below or join the conversation on Twitter, Google Plus, and LinkedIn.