What is a Power of Attorney (POA)?
Power of attorney meaning
A power of attorney is a legal authority document that allows one party (the agent) to act on behalf of another (the principal).
A power of attorney in shipping gives a carrier, freight forwarder, or customs broker the legal right to handle shipments, file customs declarations, and manage import or export actions.
This helps ensure smooth clearance and avoids border delays.
What is a durable power of attorney?
POAs are typically limited in time and scope because they’re intended for specific shipping events, not indefinite use.
However, a durable power of attorney continues to be valid even if the person granting it becomes incapacitated. In some regions, it is also called an enduring power of attorney (EPOA).
PRO TIP: Who can override a power of attorney?
The principal or an authorized officer from their company can typically revoke a POA at any time before shipment is executed. Regulatory authorities or customs may also reject a POA if it’s expired, not signed by the correct party, or doesn’t meet format/legal standards.
How to get power of attorney
To set up a POA document, you’ll typically need to:
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Determine the type of power of attorney you need – general power of attorney, export power of attorney, import power of attorney, or durable power of attorney.
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Draft the POA document with required details. Depending on your market, these may include:
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Business name and address
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Tax identification number or importer ID
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Jurisdiction
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Declaration authorizing the agent
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Authorized and witnessed signatures
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The POA document should be submitted to your carrier, freight forwarder, or customs broker along with other shipping documentation.
Why do you need a power of attorney in international shipping?
In international shipping, a valid power of attorney allows your appointed agent to handle key tasks like filing declarations, paying duties, and managing documentation.
Without a power of attorney, your representative may not have the legal authority to act on your behalf, which can lead to customs clearance delays, shipment holds, or penalties.
For example, depending which market you are exporting from or importing to, FedEx may request a POA to act on your behalf when filing declarations or arranging release of goods.
What are the 4 types of power of attorney in shipping?
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A general power of attorney gives broad authority for multiple shipping actions.
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An export power of attorney allows an agent to handle outbound customs and documentation.
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An import power of attorney authorizes representation for inbound clearance and duties. A durable power of attorney may cover extended or multi-shipment periods, if specified.
What are the benefits and limitations of a power of attorney in shipping?
For small businesses or one-time shipments, the cost and effort of preparing a power of attorney may outweigh the benefits, especially if the shipping process is straightforward. However, for businesses with frequent international shipments, a power of attorney may be more essential and enable efficient customs clearance.
Businesses should consider both the benefits and limitations of a power of attorney for shipping before deciding whether it is important for their operations.
| Benefits | Limitations |
|---|---|
| May speed up customs clearance | Varies by country (not all jurisdictions treat POAs the same) |
| Allows your forwarder or broker to pay duties and taxes | Can be time-consuming to draft, translate, and notarize |
| Helps avoid legal or financial penalties | Only valid if properly signed by an authorized person |
| Defines roles clearly to reduce liability issues | Limited to what is legally allowed under the power of attorney act |
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The information provided in this document does not, and is not intended to, constitute legal and/or business advice; instead, the information contained herein is for general informational purposes only. Readers of this document should contact their own advisor to obtain advice with respect to any particular matter or topic addressed herein. The content in this document is provided on an “as is” basis; FedEx makes no warranties or representations in relation to the currency, accuracy and/or sufficiency of the information set out herein and shall not be liable for any reliance placed on the same. For the avoidance of doubt, any and all liability with respect to actions taken or not taken based on the contents of this document are hereby expressly disclaimed.