POA Shipping

When you appoint a customs broker to assist you with customs clearance in some countries, such as the US and the Netherlands, you'll always be asked to complete a POA form. In this post, I'll explain this crucial form in detail.

What is POA (power of attorney)?
What information does the POA form include?
What about the validity of a POA?
How much does a POA cost?
What is POA (power of attorney)?
POA is a legal document that authorizes a person to authorize an agent, such as an attorney, to handle matters on their behalf. For example, when applying for immigration, you must grant your attorney the authority to purchase a home, make payments, and submit immigration materials on your behalf. Here, we focus on the POA for importing goods from China to the U.S.

Meaning of POA in shipping
A POA is actually a delegation agreement, which grants your designated customs broker the legal authority to clear your goods through U.S. customs on your behalf. This means that once you hire a broker for customs clearance, you'll need a POA. Only after receiving the power of attorney can your broker assist you.

Purchase the bond required by U.S. Customs if necessary.
Manage the ISF declaration.
Handle other matters related to customs clearance, such as payment of taxes and duties, etc.
When do you need a power of attorney?
The power of attorney must be established before your cargo declaration is submitted to Chinese customs. In addition to submitting a series of documents, such as a packing list, for the clearance of goods, your shipment is also required for the U.S. customs declaration. For example, the ISF must be submitted no later than 24 hours before the goods are loaded onto the vessel.

What information does the POA include? (4 points)
Your agent will give you a POA template to complete. Different agents provide various POA forms. But don't worry, these forms basically cover the clauses and the following four parts for authorization. Here, I'll use the FedEx POA as an example to show you what these four essential parts look like.

IRS number
The IRS number is the tax identification number registered by US importers with the Internal Revenue Service. In the US, it is impossible to complete the clearance process without an IRS number. Furthermore, the importer's bond must be cleared using the IRS number.

There are two types of IRS numbers.

Employer Identification Number (EIN): Issued to business entities
Social Security Number (SSN): issued to individuals
You can consult your customs broker or freight forwarder to find out which type is right for you.

The type of entity
You must indicate the type of business, such as individuals or corporations, in the power of attorney. There are many options to choose from. You can complete it based on your current situation.

Name and address
If you are an individual, you must write your full name and address. If you are a business, you must write the full company name and address. Whenever there are multiple addresses, use your headquarters address.

Authorized signature and date
Only with an authorized signature will the power of attorney be valid and legal. If you are an individual, only your full name is required in writing. If you are a company, a senior official of your company is required to write your full name and title. Typically, only one authorized signature is required. If EU companies export products to the United States, two senior officials of the company are required to authorize their signatures.

Except for the authorized signature, the above information can be provided directly to your agent and left to be completed for you.

What about the validity of the power of attorney?
Typically, there is no expiration date on a power of attorney, unless you are unwilling to cooperate with this agent and wish to change it. Keep in mind that if your business is owned by a partnership, powers of attorney should be limited to a maximum of two years.

One more thing: if there are any changes, such as a new company name or address, during the term of the agreement, the power of attorney will no longer be valid, and you will need to complete a new one.

How much does a power of attorney cost?
Power of attorney fees vary from one customs broker/shipper to another. Most brokers will charge this fee along with other U.S. customs clearance costs. For the specific power of attorney fee, you should consult your broker.

The end
In short, once you find a broker to handle the freight forwarding, you must sign a power of attorney. The broker can be your customs broker or a local freight forwarder. We have cooperative carriers experienced in handling shipments from China to the U.S.