Page 1 of 3 / Standard Operating Procedure –
New Account Setup and POA Validation.
Created by Name & Title:
Julius Bong
Bessie Del Rosario.
Djeky Susilo / Approved by Name & Title:
Tirta Halim / Effective Date: / Revision Date:
1/27/2011 / Version:
001
A. Scope
The goal of this procedure:
· To describe the process to establish a new account or new Importer of Record (IOR).
· To validate IOR Power of Attorney (POA).
· To satisfy all CBP requirements to establish new IOR
B. Definition
New account is define as a new bill to party, importer of record or both (IOR that we bill directly-direct account)
C. Procedure
Procedures to establish new IOR and direct account are as follow:
Entry Team
1. Receive POA from importers & Validate the POA à Go to POA Validation
2. If POA has been validated, create new account in IES.
3. Validate all the information input is match with POA. If this is not direct account, input the “bill to party”.
4. Query IRS # through ABI. If IOR not existed on CBP database, inputting and transmitting 5106 to CBP. Print the 5106 notice acceptance from ABI and keep in the POA folder
Procedures to establish new bill to party and direct account are as follow:
Account Executive
1. Create new account in IES. For new account who does not apply for credit terms, terms of payment is COD. For new account who applies for credit terms à Go to Credit Application Validation
POA Validation
1. Using the check list to document the steps, please do the following:
2. Review the POA form received has been properly filled up.
3. To the greatest extent possible, have POAs completed in person so the grantor’s personal identification (driver’s license, passport, etc.) can be reviewed.
4. If the principal uses a trade or fictitious name in doing business, confirm that the name appears on the POA.
5. Verify that the importer’s name, importer number and Employer Identification Number (also known as the Federal Tax Identification Number) on the POA match with ABI query.
a. If IOR is not registered with CBP (5106 is not filed yet), ask IOR IRS proof or ask IOR to call 800-829-0115 (IRS#) to get the proof needed.
b. If IOR is individual, ask copy of Social security card or other IRS proof.
6. Check whether the POA grantor is named as a sanctioned or restricted person or entity by the U.S. Government. See the Bureau of Industry and Security's Export Enforcement page
7. Check applicable Web sites to verify the POA grantor’s business and registration with State authorities. For corporation and LLC of California, verify with http://kepler.ss.ca.gov. For example CA state site will give status of the company. Verify that the company status is Active (not suspended or surrender). For other state, verify with the state secretary state. For the list: http://www.coordinatedlegal.com/SecretaryOfState.html
8. Google principal address if address is physically exist not PO Box.
9. Create folder for the POA and all additional information about the company. Scan the POA and place the secure lock cabinet.
10. To access the hard copy POA, personnel is required to get permission from the GM.
Establish a credit term
Account Payable
1. Validate the form has been properly fill up, including credit reference and bank reference that are required
2. Run credit check by requesting credit references
3. Find more information about the account by searching online, asking recommendation from other business partners
4. Forward the credit application and other information founded to accounting manager for decision.
Accounting Manager
1. Make decision on the credit application
2. Inform the customer on the credit application status. If the credit is approved, setup the credit terms and limit on IES.
D. Limitation and Changes
There might events that are not covered by this SOP. In that case, please consult with management for advice. The SOP might be revised from time to time to reflect the current T Customs’ situation and need.