Question 7

Domain 1: Customs Entry and Importation Process

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 Which regulation explains why the existing POA is no longer valid?