Letters of Authority

Do you check your Letters of Authority – are they CORRECT??

Members will be aware of the obligation under Section 182 of the Customs Act 1901 to produce, if requested, a Letter of Authority (LOA) from your client authorising them to represent them for the purposes of preparing and submitting import declarations.

Members are also obligated both under the Customs Act 1901 and the conditions attached to their customs brokers licence to ensure that information supplied on an import declaration is true and correct.

In requesting details via an LOA, members should not take for granted that the details contained in same are accurate and correct.

The Customs Brokers and Forwarders Council of Australia Inc. (CBFCA) has recently been made aware from members of increasing inaccuracy in the details being provided, particularly in regards to Australian Business Numbers (ABNs).

Unfortunately, it would seem that these inaccuracies, in some a cases, are deliberate and when the importer has been questioned by the broker they admit they were quoting the incorrect ABN to be in a position to enable them to claim back the Goods & Services Tax paid on the declaration.

These actions would not only seem to be in contravention of the Custom Act but also be of interest to the Australian Taxation Office as to fraudulent claims.

Whilst decisions on how members conduct their business, in terms of commercial relationships is within their control, it would be remiss of us, the CBFCA, as both your industry association and the peak industry association for border clearance and international freight forwarding matters, to not bring these matters to your attention so as to alert you to the current practices being employed by some importers and for you to take the appropriate action when assessing letters of authority from both your current and new clients.