When exporting goods to the United States,
you must submit ISF/AMS declarations in advance,
purchase a Bond,
and process a POA to complete customs clearance.
But what exactly is this POA?
Let’s find out together~
What is POA
POA stands for Power of Attorney, which is a legal document granting a customs broker the authority to handle customs procedures on behalf of an importer or exporter. Similar to an import/export customs declaration authorization letter signed between domestic customs brokers and import/export companies, it is a commercial agreement.
Only with a valid POA can a customs broker represent an importer or exporter in handling import/export customs procedures. Customs may require the broker to provide the POA as proof of authorization when necessary.
The parties involved in signing a POA are the importer or exporter (the principal) and the customs broker (the agent). In cross-border e-commerce, the POA is usually signed between the importer and the customs broker.
Methods of POA Clearance
POA generally needs to be provided by the U.S. consignee to the customs clearance company, depending on the situation.
There are various forms for trade exports to the United States, but if the trade term is DDP (Delivered Duty Paid, delivered after tax), you usually need two methods of customs clearance:
1.In consignee’ s name: In this case, the relevant consignee of the U.S. consignee provides POA to the U.S. agent of the shipping agent, and at the same time the U.S. consignee’s Bond is required.
2.In shipper’s name: The other is to sign a POA in the name of the shipper company, and clear customs in their own name. This method of customs clearance is the
shipper providing POA to the agent of the shipping agent at the shipping location, then sending it to the agent at the destination port, and the relevant responsible person of the U.S. consignee is responsible for registering the importer’s customs registration number in the United States. At the same time, the shipper also needs to purchase a bond. Note that the sender can only purchase the annual BOND, not the single BOND.
There are two ways to clear customs, both of which require the U.S. consignee to use the U.S. local recipient’s tax number Tax ID (IRS No.) for customs clearance, which belongs to the Internal Revenue Service No. that the U.S. consignee has registered with the U.S. Internal Revenue Service.
1. The U.S. consignee must provide the tax number Tax ID to clear customs.
2. IRS No. The Internal Revenue Service No. is a tax identification number registered by the U.S. consignee with the U.S. Internal Revenue Service.
3. There is no BOND, which cannot be cleared in the United States.
4. No Tax ID, which cannot be cleared in the United States.
Importance of POA
POA is a valid authorization document for goods exported to the United States. If your goods arrive at the port, check your POA. Without it, customs clearance cannot be completed.
For U.S. POA, the local driver’s license or passport of the local person in the United States or the U.S. trader is required, or a company that has registered a BOND in the United States. POA is a formal legal document with a standardized format that is recognized by U.S. government agencies and third-party organizations. The filling of POA has a certain format.
Providing POA in export business is also a need to comply with U.S. regulations, making it easier for customs to tax imported and exported goods.
Highroad is a company that provides comprehensive services for cross-border e-commerce at home and abroad. Since its establishment, the company has always focused on the development trends of cross-border e-commerce industry, committed to a global localization service trade platform driven by information technology, based on overseas warehouses, and cross-border logistics as the link. With warehouses in Los Angeles and New York, covering a total area of approximately 300,000 square feet, Highroad’s U.S. branch specializes in providing one-stop logistics solutions for Chinese enterprises engaged in cross-border e-commerce exports, including sea freight clearance, assembly delivery, overseas warehousing, FBA transit, and drop shipping.
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