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April 2025, question 3
Broker Compliance · Entry and release
John and Fred Smith each had a 25% ownership share of a general partnership, JJF, with their father, Jack Smith, owning the other 50%. Three weeks ago, JJF had sent ABC Customhouse Brokers (ABC) a copy of the bill of lading, a commercial invoice, and a packing list for their incoming shipment. JJF, a longtime client of ABC, had executed a new customs power of attorney (POA) signed by Jack Smith one month ago. However, John Smith advised ABC that his father, Jack Smith, died last week, with JJF changing by operation of law into Smith & Smith, a new partnership that inherited JJF’s legal rights and responsibilities. ABC states that they cannot proceed with the customs clearance on Smith & Smith’s behalf without a newly executed POA. Which regulation explains why the existing POA is no longer valid ?
- 19 CFR 141.34
- 19 CFR 141.39(b)
- 19 CFR 111.23(b)
- 19 CFR 111.30(b)
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CBP's answer: B. B: 19 CFR 141.39(b)
Section 141.39(b) says that when a new firm is formed by a change in membership, no power of attorney filed by the antecedent firm is recognized for any Customs purpose. JJF became Smith & Smith when Jack died, so ABC needs a new POA. Section 141.34 is about the general POA rules, and 111.23 and 111.30(b) are about broker records and organization changes, not POA validity.
no power of attorney filed by the antecedent firm shall thereafter be recognized for any Customs purpose 19 CFR 141.39(b)
Search for: change in partners
CBP's key cites: 19 CFR 141.39(b)
Question and key from CBP's April 2025 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).