Effective December 19, 2022, all Power of Attorneys (POA) implemented with forwarders or other third parties must be restructured to satisfy a new requirement because of the Modernization of the Customs Broker Regulations Final Rule (87 FR 63267) under 19 CFR 111.36(c)(3). A broker must complete POAs directly with the importer of record (IOR) or drawback claimant, in order to transact customs business on behalf of the client, U.S. Customs and Border Protection (CBP) said in CSMS # 54194146 notice on December 1.

For brokers with POAs implemented prior to December 19, “CBP will permit the requirement identified in the Modernization of the Customs Broker Regulations Final Rule to be satisfied” by February 17, 2023, CBP said. “Brokers may take steps to ensure that a POA has been directly executed with an importer or drawback claimant by affirming the POA via direct communication with the importer or drawback claimant.”

CBP also stated the broker must execute a POA directly with the IOR. “However, the IOR or claimant may have a freight forwarding agent or third party assist in executing the POA, for example, by: providing translation services; providing counsel in reviewing the terms of a POA; or, providing courier services to relay a written POA.”

Based on this guidance from CBP, please be advised that you may be contacted by a Mohawk Global representative to re-execute your existing POA on file.

For more information on restructuring your POAs, reach out to Mohawk Global Trade Advisors.

By Clarissa Chiclana

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