October 2023 — Question 18
Which of the following may a licensed organizational broker appoint as a subagent for a resident importer (principal) under a power of attorney that contains express authority to appoint subagents?
- AThe broker's licensed officer✓ CBP's answer
- BA co-principal
- CA port director
- DA surety Category III – Bonds
Why this answer
Section 141.43 limits delegation: holders of a power of attorney for a resident principal generally may not appoint subagents, but its provision for licensed customhouse brokers permits a power granted to a brokerage to be exercised through the firm's own licensed officers or authorized employees. Where the power expressly authorizes subagents, the organizational broker may accordingly appoint its licensed officer, option A. The remaining choices fail on their face: a co-principal grants authority rather than receives it from the broker, and neither a port director nor a surety can serve as the importer's delegated agent, one being the regulator and the other the guarantor of payment. Watch for: Assuming any related party can be a subagent rather than the broker's own personnel.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the October 2023 examination.
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