What Is the Power of Attorney?

Power of Attorney (POA) in Shipping – Explained Simply

A Power of Attorney (POA) is a legal document that lets someone else act on your behalf. In shipping, this usually means an importer or exporter gives authority to a freight forwarder or customs broker to handle certain parts of a shipment.

It’s not a contract—it’s a transfer of specific legal powers. You don’t need a lawyer to make one, but it must be clear, accurate, and made before the cargo is shipped.

Why POA Is Used in Shipping?

A POA allows your forwarder or agent to:

• Prepare, sign, and submit shipping documents
• Communicate between buyer and seller
• Handle your cargo
• Clear your goods through customs

With a POA, customs officials know your agent is authorized to deal with shipment matters directly—saving you time and avoiding delays.

Types of POA

1. Export POA – Authorizes a forwarder to handle cargo and customs clearance for exports. Signed by the shipper.
2. Import POA – Authorizes a forwarder or customs broker to handle imports. Required in the USA for customs brokers.
3. General POA – Gives an agent full authority over all shipment matters.
4. Durable POA – Gives authority for specific shipment-related tasks only (must be clearly stated).

What a POA Document Should Include?

(Example: Nepal requirements)

• Shipper’s full name and company name
• PAN/VAT number or citizenship number
• Signature of the shipper (preferably witnessed or notarized)
• Name of the authorized agent or freight forwarder
• A clear statement giving them permission to act on your behalf for the shipment
• Expiry date of the POA (usually when the shipment is completed)

Why It Helps Shippers?

A POA reduces your workload by letting experts manage:

• Customs paperwork
• Communication with officials
• Compliance with import/export laws

It keeps your shipment moving smoothly, prevents costly delays, and ensures legal requirements are met.