GRF Knowledge Base
What is a POA?
As per CBP Publication 2034-1022, “A Power of Attorney (POA) is a written statement legally authorizing a person to act for another. A POA is a requirement for customs brokers transacting customs business on behalf of an importer of record (IOR) or a drawback claimant (claimant).”
https://www.cbp.gov/document/guidance/job-aid-power-attorney
Why is a POA required?
For legal and practical reasons, a valid Power of Attorney (POA) is required to serve you. A POA grants GRF-CHB the authority to act on your behalf regarding customs matters.
Who can sign the POA?
A.The POA needs to be signed by an officer of the business whose name appears on the articles of incorporation or latest status filing as President, Vice President, Treasurer, or Secretary of the corporation.
B. Other titles are acceptable if accompanied by Articles of Incorporation, a resolution of the Board of Directors, or a letter from the Corporate Secretary authorizing the named officer to sign for the corporation.
Are electronic signatures accepted?
No, electronic signatures are not accepted.
What documents are required for POA validation?
A. Most recent status filing with the Secretary of State showing the officer(s) names
B. If the most recent status filing does not show the names of the officers, please provide a copy of the articles of organization/incorporation.
C. A government issued picture ID of the POA signor.
D. A copy of the IRS letter validating the EIN number
Are there additional requirements for foreign importers?
Yes, all foreign importers are required to have a resident agent as per Code of Federal Regulations Title 19, Chapter I Part 141 Subpart B § 141.18 Entry by nonresident corporation.
What POA requirements apply for a freight forwarder?
Due to updated CBP Regulations effective as of 12/19/2022, Customs Brokers must execute a POA directly with the client, not via a freight forwarder or other third party.
https://www.cbp.gov/document/guidance/job-aid-power-attorney
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The DUNS number is a unique nine-digit identifier provided by D&B that serves as a universal business identifier and is widely used by companies and organizations worldwide. It helps establish the credibility and legitimacy of a business entity and facilitates transactions with suppliers, customers, and financial institutions. Having a Dun & Bradstreet (DUNS) number is important for FDA registration and compliance for several reasons:
Identification and Verification:
Verification: The FDA uses the DUNS number as a unique identifier to accurately identify and verify facilities during the registration process. This helps ensure that the correct information is associated with each facility and facilitates effective communication between the FDA and regulated entities.
Regulatory Compliance:
FDA regulations require facilities engaged in manufacturing, processing, packing, or holding food products for consumption in the United States to register with the agency. The DUNS number is one of the key pieces of information required for FDA registration. Without a DUNS number, facilities may encounter difficulties or delays in completing the registration process and maintaining regulatory compliance.
Enhanced Transparency and Accountability:
The use of DUNS numbers enhances transparency and accountability in the regulatory process by providing a standardized method for tracking and monitoring facilities across different regulatory agencies and jurisdictions.
Overall, having a DUNS number is a critical aspect of FDA registration and compliance for facilities involved in the production, processing, packing, or holding of food products intended for consumption in the United States. It helps ensure accurate identification, regulatory compliance, transparency, and effective communication between the FDA and regulated entities, ultimately contributing to the safety and integrity of the U.S. food supply.
The Periodic Monthly Statement (PMS) program is an initiative introduced by the U.S. Customs and Border Protection (CBP) designed to streamline the customs clearance process for eligible importers. In essence, the PMS program allows approved importers to consolidate their payments for certain duties, taxes, and fees into a single monthly statement. This simplifies the administrative burden associated with importing goods into the United States, reducing paperwork and providing greater flexibility in managing financial transactions. Key features and benefits of the Periodic Monthly Statement program include:
Consolidated Payments
Instead of making individual payments for each import entry, importers enrolled in the PMS program can make a single monthly payment covering all eligible transactions.
Cash Flow Management:
The ability to defer duty payments for 30 days can help importers better manage their cash flow and optimize financial planning.
Cost Savings:
Streamlining the customs clearance process through PMS can lead to cost savings associated with reduced paperwork, faster processing times, and improved efficiency in supply chain management.
Administrative Efficiency:
By consolidating payments, importers can significantly reduce the administrative workload associated with customs clearance, saving time and resources. We will create an intuitive tailored report for your organization that will allow receivers to view the PMS information as it is built with the entries processed in the month. Our system will also send a courtesy reminder at least 4 calendar days prior to the payment due date.
Customs Compliance:
Participation in the PMS program requires adherence to specific compliance standards set by CBP, promoting greater accuracy and consistency in customs declarations and documentation.
It's important to note that participation in the Periodic Monthly Statement program is subject to certain eligibility criteria and compliance requirements established by the U.S. Customs and Border Protection.The importer must have a continuous bond and the importer will need to have an ACH PUN (payer unit number).
Importers interested in enrolling in the program should CONTAC US to determine their eligibility and ensure compliance with program guidelines.
FSVP, or Foreign Supplier Verification Program, is a crucial component of the FDA's Food Safety Modernization Act (FSMA), designed to ensure that food imported into the United States is safe for consumption.
There are several benefits for a supplier to comply with FSVP:
Access to U.S. Market:
Compliance with FSVP is mandatory for foreign suppliers who want to export food products to the United States. By adhering to FSVP requirements, suppliers gain access to a significant market and expand their business opportunities.
Improved Reputation and Trust:
Compliance with FSVP demonstrates a supplier's commitment to food safety and quality. This can enhance their reputation among consumers, retailers, and other stakeholders, fostering trust in their products and brand.
Competitive Advantage:
Suppliers who comply with FSVP may gain a competitive advantage over those who do not. Compliance demonstrates professionalism, reliability, and a willingness to meet the highest food safety standards, which can differentiate them in the marketplace.
Enhanced Food Safety Standards:
Implementing FSVP helps suppliers improve their food safety practices and standards. This not only ensures compliance with U.S. regulations but also enhances the overall safety and quality of their products, benefiting both domestic and international consumers.
Reduced Risk of Recalls andLegal Issues:
By implementing robust food safety measures and complying with FSVP requirements, suppliers can reduce the risk of contamination incidents, recalls, and legal issues. This helps safeguard their business interests and avoids potential financial losses.
Facilitated Trade Relationships:
Compliance with FSVP requirements can streamline trade relationships with U.S. importers and distributors. Suppliers who have established FSVP systems in place are more likely to attract reputable partners and build long-term, mutually beneficial trade relationships.
Overall, having an FSVP as a supplier brings numerous benefits, including market access, enhanced food safety standards, improved reputation, reduced risks, competitive advantage, and facilitated trade relationships.
Please visit the electronic Code of Federal Regulations on the subject at
eCFR :: 21 CFR Part 1 Subpart L -- Foreign Supplier Verification Programs for Food Importers
Having a U.S. Agent for FDA matters is crucial for foreign companies seeking to comply with FDA regulations, maintain communication with the FDA, and navigate the regulatory landscape in the United States.
Communication Bridge:
The U.S. Agent serves as a communication liaison between the FDA and the foreign company. They receive communications from the FDA on behalf of the foreign company and ensure that important information, such as regulatory updates or inspection notifications, is promptly relayed to the company.
Accessibility:
The presence of a U.S. Agent ensures that the FDA can easily reach out to a representative within the United States if needed. This facilitates smoother communication and interaction between the FDA and the foreign company, which is especially important in cases of urgent matters or regulatory compliance issues
Legal Representation:
In the event of regulatory enforcement actions or inspections by the FDA, having a U.S. Agent provides the foreign company with a designated representative in the United States. This can be beneficial for handling any regulatory issues or inquiries that arise, as the U.S. Agent can help facilitate communication and resolution with the FDA
Legal Representation:
In the event of regulatory enforcement actions or inspections by the FDA, having a U.S. Agent provides the foreign company with a designated representative in the United States. This can be beneficial for handling any regulatory issues or inquiries that arise, as the U.S. Agent can help facilitate communication and resolution with the FDA
Requirement:
For foreign companies that are required to register with the FDA, designating a U.S. Agent is often mandatory. This requirement is outlined in various FDA regulations, such as the Food Safety Modernization Act (FSMA) and the Federal Food, Drug, and Cosmetic Act (FD&C Act), to ensure that foreign companies have a point of contact within the United States for regulatory purposes
What is a bond
According to the U.S. Customs, “a bond is a performance contract taken out by a party engaging in transactions or activities with CBP to adequately protect the revenue of the United States and to ensure compliance with any pertinent law, regulation, or instruction regarding the conduct of that business. The bond is a contract between the principal and the surety, or an agreement by a principal secured by cash in lieu of surety.”
An importer must post a bond when filing an entry to make sure that he/she will abide by the import rules, especially payment of duties and taxes imposed by Customs.
How is the bond amount calculated
Bond Amount: The amount of the bond depends on the shipment value and the fees owed. CBP sets the bond amount based on regulations outlined in Title 19, Code of Federal Regulations (CFR), Part 113.13(b).
(1) The prior record of the principal in timely payment of duties, taxes, and charges with respect to the transaction(s) involving such payments;
(2) The prior record of the principal in complying with CBP demands for redelivery, the obligation to hold unexamined merchandise intact, and other requirements relating to enforcement and administration of customs and other laws and CBP regulations;
(3) The value and nature of the merchandise involved in the transaction(s) to be secured;
(4) The degree and type of supervision that CBP will exercise over the transaction(s);
(5) The prior record of the principal in honoring bond commitments, including the payment of liquidated damages; and
(6) Any additional information contained in any application for a bond.
Are there different bond types?
Yes, there are two types of Bonds:
1. Single Transaction Bond: Covers a specific import transaction.
2. Continuous Bond: Covers multiple transactions over a period (usually one year). Importers who frequently import goods may opt for a continuous bond.
How is the continuous bond amount calculated?
The calculation method for a Continuous Bond amount involves estimating the total duties, taxes, and fees anticipated over the upcoming or preceding 12 months (whichever is greater), then multiplying this sum by 10%. The result is rounded up to the nearest $10,000 to determine the total bond amount. The minimum Continuous Bond required for import bonds is $50,000. For bond amounts surpassing $1,000,000 in duties, taxes, and fees over the 12-month period, the amounts are rounded up to the nearest $100,000 value.
The provided chart offers a straightforward illustration of how estimated duties, taxes, and fees correspond to Continuous Bond amounts. It's important to note that this chart serves solely as an example for bond amount calculation; actual bond amounts may vary significantly. Understanding how to accurately assess and round up to the appropriate amount is crucial.
Total 12 Month Taxes, Duties, and FeesBond Amount$0 to $499,999$50,000$1,000,000 to $1,999,999$200,000$2,000,000 to $2,999,999$300,000$500,000 to $599,999$60,000$600,000 to $699,999$70,000$700,000 to $799,999$80,000$800,000 to $899,999$90,000$900,000 to $999,999$100,000Ultimately, understanding your business operations is key to determining the appropriate bond amount. For sporadic import activities, a single entry bond may suffice. However, if you expect a higher volume of imports, a continuous import bond is advisable. Accurately estimating import duties, taxes, and fees for the next 12 months is crucial in selecting an adequate bond amount.
For additional information regarding bond calculation and regulations, please refer to the Guide for the Public: How CBP Sets Bond Amounts published by the Office of Trade, Trade Policy & Programs, Publication # 3569-0224
How often is bond sufficiency reviewed?
As per 19 CFR 113.13(c) regulation, “CBP will periodically review each bond on file to determine whether the bond is adequate to protect the revenue and ensure compliance with applicable law and regulations. If CBP determines that a bond is inadequate, the principal and surety will be promptly notified in writing. The principal will have 15 days from the date of notification to remedy the deficiency. Notwithstanding the foregoing, where CBP determines that a bond is insufficient to adequately protect the revenue and ensure compliance with applicable law and regulations, CBP may provide written notice to the principal and surety that, upon receipt thereof, additional security in the form of cash deposit or single transaction bond may be required for any and all of the principal's transactions until the deficiency is remedied.”
In summary, CBP will review bond sufficiency periodically and when insufficiency is determined, upon written notice, the principal will have 15 days to remedy the deficiency.
