Smith Logistics LLC ("Smith Logistics") is a freight forwarder and licensed customs broker. Smith Logistics has executed a valid power of attorney to authorize its unlicensed employee, Erin Johnson, to sign documents pertaining to customs business on its behalf. Which ONE of the following statements is TRUE for this scenario?
How to get there
An employee of a broker doesn't need a license when acting solely for the employer, but the regulation sets up two separate tracks for that. Match the facts to the right one.
19 CFR 111.2(a)(2)(ii)(A)(1) Authorized to sign documents. The broker has authorized the employee to sign documents pertaining to customs business on his behalf, and has executed a power of attorney for that purpose. The broker is not required to file the power of attorney with CBP, but must provide proof of its existence to CBP upon request; or
(2) Authorized to transact other business. The broker has filed with the processing Center a statement identifying the employee as authorized to transact customs business on his behalf.
(2) Authorized to transact other business. The broker has filed with the processing Center a statement identifying the employee as authorized to transact customs business on his behalf.
Erin Johnson is authorized to sign documents through a power of attorney, so track (1) applies. The only obligation it imposes is to prove the POA exists if CBP asks. That's A.
Why the other choices are wrong
B) File a statement with the processing Center: that's track (2), for employees authorized to transact other customs business. It doesn't apply to an employee signing under a POA.
C) File the POA before she starts signing: the regulation says the opposite. The broker is not required to file the power of attorney.
D) Prove she's 21 and a U.S. citizen: age and citizenship are requirements for an individual license (19 CFR 111.11). An unlicensed employee acting for the broker doesn't have to meet them.
Tip
Don't forget the catch: under 111.2(a)(2)(ii)(B), the broker must supervise that employee and is held strictly responsible for the employee's acts within the scope of employment. The broker must also promptly notify CBP if the authority is withdrawn.
Source: 19 CFR 111.2(a)(2)(ii) (eCFR).
CBP answer key: Answer A · 19 CFR 111.2(a)(2)(ii)(A)(1)-(2)Source: CBP past exams ↗