Question 9
Domain 1: Customs Entry and Importation ProcessWhich statement accurately reflects the duration limitations for powers of attorney?
Correct answer: C
Explanation
A power of attorney is generally effective according to the terms stated in the instrument, but partnership-issued powers are limited by law to “a period not to exceed two (2) years from the date of execution.” By contrast, “all other powers of attorney may be granted for an unlimited period,” which matches the answer.
Why each option is right or wrong
A. Powers of attorney issued by a partnership can be granted for an unlimited period and all other powers of attorney are limited to a period not to exceed two (2) years from the date signed.
It reverses the rule by making partnership powers unlimited and limiting all others to two years.
B. Powers of attorney issued by a partnership and all other powers of attorney have the same duration limitation of two (2) years from the date signed.
It incorrectly applies the same two-year limit to every power of attorney, ignoring the partnership distinction.
C. Powers of attorney issued by a partnership shall be limited to a period not to exceed two (2) years from the date of execution, while all other powers of attorney may be granted for an unlimited period.
Under the governing rule on powers of attorney, a special statutory cap applies only when the instrument is issued by a partnership: it cannot run beyond 2 years from the date of execution. The same provision expressly allows all other powers of attorney to be granted for an unlimited period, so the answer correctly distinguishes the 2-year ceiling for partnership-issued authorities from the absence of any fixed maximum for other POAs.
D. Powers of attorney issued by a partnership are valid for five (5) years from the date of execution, while all other powers of attorney may be granted for an unlimited period.
It assigns a five-year term to partnership powers, but the rule uses a two-year maximum instead.