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Must-read Before Signing the Power of Attorney for Customs Declaration! Beware of These 5 Money-eating Black Holes

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The Power of Attorney for Customs Declaration Agency may seem simple but actually harbors significant risks. Exposing the 5 common pitfalls in the power of attorney, providing a 4-step risk avoidance guide, comparing the pros and cons of electronic/paper power of attorneys, to help import and export enterprises avoid losses of hundreds of thousands of yuan caused by unclear authorities and undefined responsibilities. A self-check list and interactive benefits are attached at the end of the article.

Mr. Zhang recently had a sleepless night because a shipment of imported goods was detained by the customs - the customs broker made an operational mistake with the power of attorney he casually signed, resulting in 30,000 yuan of demurrage charges. And Ms. Li was overcharged 20% service fee by a bad agent due to unclear terms in the power of attorney. How many secrets are hidden in this thin piece of Power of Attorney for Customs Declaration Agency?

Why Does Your Power of Attorney = Risk Guarantee?

 Why Do 90% of Shippers Sign the Power of Attorney for Customs Declaration Wrongly?

Customs data shows that in 2023, customs declaration disputes caused by power of attorney issues increased by 37% year-on-year. The three common pitfalls are:

  • Authority Black Hole: Key authorities such as "accompanying inspection" and "advancing tax payments" are not clearly marked, and the agent may operate beyond their authority.
  • Responsibility Shifting: Hidden clauses require the principal to bear all the responsibilities for customs declaration errors.
  • Time Limit Trap: A "long-term valid" entrustment may be misused for many years.

Experts from Zhongshitong Teach You Four Steps to Avoid Risks

Manager Wang, who has been engaged in customs affairs for 20 years, suggests:

  • List Authorities: Tick off specific authorities such as customs declaration, inspection, and tax payment one by one.
  • Double Validity Period: Overall entrustment period + deadline for a single shipment of business.
  • Define Responsibilities: Note that "fines caused by the agent's operational mistakes shall be borne by the agent".
  • Termination Clause: Reserve the right to terminate the entrustment in writing at any time.

Is the Electronic Power of Attorney Safer? Beware of New Traps

With the promotion of the "Single Window" in international trade, the usage rate of electronic power of attorneys has reached 68%, but note:

  • Whether the validity period of the digital certificate covers the business cycle.
  • The automatic renewal function of the system may cause the loss of control over authorities.
  • The electronic signature should be bound to the specific handler rather than a unified signature of the enterprise.

Your Power of Attorney Needs an Upgrade

Before signing next time, you might as well check against: Have you clearly defined the way to handle disputes over commodity codes? Have you limited the agent's right to sub-entrust? Are the freight settlement terms consistent with the logistics contract? After all, in the eyes of the customs, the power of attorney in black and white is your "legal alter ego".

What pitfalls have you encountered with the power of attorney? Welcome to share your experiences in the comment section. We will randomly select three readers to present the electronic version of the International Trade Document Risk Avoidance Manual.

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Must-read Before Signing the Power of Attorney for Customs Declaration! Beware of These 5 Money-eating Black Holes

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