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Why Is DHL Express Requesting a Customs Power of Attorney for Recent Shipments?

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mtelander

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Posted 01 August 2024 - 12:56 PM

We are a dietary supplement contract manufacturer. We have been the importer of record for a material a few times but DHL Express has acted as the importer of record for the past few shipments but with our most recent one we got a weird notification "Due to the value and/or type of commodity you are importing, DHL Express will not act as the importer of record with U.S. Customs. A Customs Power of Attorney will be required to allow DHL to act as your Customs Broker." The material has not changed and neither has the supplier and they are now asking for our EIN and Power of Attorney. Has anyone seen this happen before?



ChristinaK

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Posted 01 August 2024 - 02:44 PM

It's not because of the $$ value, but because they are dietary supplements. 

 

For FSVP, you are required to have an agreement in place for who is the importer of record. From what it sounds like, you either didn't have one in place, or it changed and now DHL wants something in writing if they're assuming responsibility, because it is required per FSVP regulations.

 

If you are the IOR, you need to be the ones vetting your foreign suppliers. You are then also the entity responsible for ensuring food or drugs (including dietary supplements) imported meet all FDA regulations, as well as any other import regulations (UFLPA for items from China, for example).

 

The FDA has increased their scrutiny of foreign imports and FSVP programs this year. There have been many FDA Warning Letters and FSVP violations published this year, especially concerning drugs, supplements, and medical supplies.

 

I suggest taking a course on FSVP. It will clarify what you are required to do. FSPCA has an online self-paced course available, as well as recognized in-person courses lead by certified instructors.


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mtelander

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Posted 01 August 2024 - 03:00 PM

It's not because of the $$ value, but because they are dietary supplements. 

 

For FSVP, you are required to have an agreement in place for who is the importer of record. From what it sounds like, you either didn't have one in place, or it changed and now DHL wants something in writing if they're assuming responsibility, because it is required per FSVP regulations.

 

If you are the IOR, you need to be the ones vetting your foreign suppliers. You are then also the entity responsible for ensuring food or drugs (including dietary supplements) imported meet all FDA regulations, as well as any other import regulations (UFLPA for items from China, for example).

 

The FDA has increased their scrutiny of foreign imports and FSVP programs this year. There have been many FDA Warning Letters and FSVP violations published this year, especially concerning drugs, supplements, and medical supplies.

 

I suggest taking a course on FSVP. It will clarify what you are required to do. FSPCA has an online self-paced course available, as well as recognized in-person courses lead by certified instructors.

 

Hi Christina,

    Thank you for this. I am actually the FSVP certified personnel for my company and have taken many courses on this. We have an agreement with DHL express in place to be the importer of record for this material but now they are saying they wont take responsibility because of the value and type of material it is. The material and supplier have not changed. We have already vetted this supplier and I have an FSV record on file for them. So i was just wondering why now they would say they dont want to take responsibility and if anyone else has had this happen for them?



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Posted 01 August 2024 - 03:06 PM

Companies won't take the risk for 1 reason and 1 reason only ---------------- $$$$$$

 

My guess is DHL look at the liability (and insurance) and said no thank--their insurance was probably in it's annual review ahead of renewal


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ChristinaK

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Posted 01 August 2024 - 03:18 PM

Companies won't take the risk for 1 reason and 1 reason only ---------------- $$$$$$

 

My guess is DHL look at the liability (and insurance) and said no thank--their insurance was probably in it's annual review ahead of renewal

 

I was about to post the same thing! Haha.

Yeah, it's likely because of the liability $$$. 

 

Our company is listed as IOR, but our customs broker (not DHL) screwed up the import code and we ended up losing $20k on a container that was flagged & then destroyed by CBP (after 4 freaking months of back-and-forth and runaround). Because we're the IOR, guess who CBP is billing? Ugh. 


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Scampi

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Posted 01 August 2024 - 05:48 PM

I used to import/export fresh poultry-------------sigh the good ole days waiting on the border to determine whether or not it was a skip lot while my poultry just kept aging lol

 

Had a load refused once because the fax machine pulled the pages out of order!!!!!!!!  I wish I was making this up


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salvatore bulgarella

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Posted 01 August 2024 - 07:17 PM

We are a dietary supplement contract manufacturer. We have been the importer of record for a material a few times but DHL Express has acted as the importer of record for the past few shipments but with our most recent one we got a weird notification "Due to the value and/or type of commodity you are importing, DHL Express will not act as the importer of record with U.S. Customs. A Customs Power of Attorney will be required to allow DHL to act as your Customs Broker." The material has not changed and neither has the supplier and they are now asking for our EIN and Power of Attorney. Has anyone seen this happen before?

Yes, it seems like DHL Express has changed their policy on acting as the importer of record for certain shipments. This is likely due to increased scrutiny on imports by U.S. Customs. You'll need to provide your EIN and Power of Attorney to allow DHL to act as your Customs Broker. This is a standard procedure, and you can find more information on the CBP website.





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