Supporting Statement
Entry Summary
1651-0022
A. Justification:
Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section of each statue and regulation mandating or authorizing the collection of information.
For each import transaction certain documentation is necessary to describe and identify the merchandise entering the commerce of the United States, to show amount of duty and /or tax paid, to provide a statistical copy for Census purposes and to have a permanent record to which other pertinent documents may be attached for Customs and Border Protection (CBP) brokers, importers or other agency use. The Entry Summary (CF-7501) was specifically designed to fulfill these requirements under 19 CFR 10.31,141.61,and 142.11. An interim rule is currently being drafted to implement the provisions of the Softwood Lumber Act of 2008 (SLA 2008), Title VIII of the Tariff Act of 1930, as added by section 3301 of Title III, Subtitle D, of the Food, Conservation, and Energy Act of 2008 (Public Law 110-246). For shipments of softwood lumber and softwood lumber products, as described in the SLA 2008, imported on or after August 18, CBP will collect three additional data elements provided by the importers of record. The three additional data elements required to be supplied are 1) export price, 2) estimated export charge, if any applies, and 3) an importer declaration. These elements must be submitted for each entry line of imported softwood lumber on the Form 7501. However, no new fields will be added to the Form 7501. CBP did not revise the form to allow for the softwood lumber provisions.
2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection.
The data on the CBP-7501 is used by CBP as a record of the import transaction, to collect the proper duty, taxes, certifications and enforcement endorsements; to provide data to Census for statistical purposes, and to other agencies as required; and to have a permanent record until the expiration of any protest time limit or completion of court action or a determination of fraudulent practices. This information is vital to CBP in carrying out the regulatory requirements associated with the import transaction documentation. CBP will collect this information as required under the Softwood Lumber Act of 2008 (SLA 2008), Title VIII of the Tariff Act of 1930, as added by section 3301 of Title III, Subtitle D, of the Food, Conservation, and Energy Act of 2008
(Public Law 110-246). CBP will reconcile and verify this information, as required by the SLA 2008.
3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g. permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also describe any consideration of using information technology to reduce burden.
Most brokers and importers are now communicating the information on the CBP- 7501 for immediate release through computers under the Automated Broker Interface (ABI), thereby eliminating the need for most paper submissions of this form. The percentage of Entry Summaries filed electronically through ABI is about 93 percent. .
4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Item 2 above.
This information is not collected in any other form, and therefore is not duplicated elsewhere.
5. If the collection of information impacts small businesses or other small entities (Item 5 of the OMB Form 83-I), describe any methods used to minimize burden.
This information collection does not have an impact on small businesses or other small entities.
6. Describe consequences to Federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.
CBP’s ability to collect of the proper amount of duties and applicable fees, and taxes could be significantly jeopardized if the CBP-7501 is not submitted as CBP regulations prescribe.
7. Explain any special circumstances that would cause an information collection to be conducted in a manner:
This information is collected in a manner consistent with the guidelines of 5 CFR 1320.6.
8. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.
9. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees.
There is no offer of a monetary or material value for this information collection.
10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.
No special assurance of confidentiality is provided with this information collection.
11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent.
There are no questions of a sensitive nature.
12. Provide estimates of the hour burden of the collection of information.
FORM |
HOURS |
NO. OF RESPONDENTS |
RESPONSES PER RESPONDENT |
TOTAL RESPONSES |
TIME PER RESPONSE |
7501 Formal Entry |
6,393,600 |
10,000 |
1,920 |
19,200,000 |
20 minutes or (.333) hours |
7501 Formal Entry with SLA 2008 |
266,433 |
210 |
1,905 |
400,050 |
40 minutes or (.666) hours |
7501 Informal Entry |
232,657 |
28,500 |
98 |
2,793,000 |
5 minutes (.0833) hours
|
TOTAL |
6,891,852 |
|
|
22,393,050 |
|
Due to rounding, the numbers are slightly different in ROCIS.
Public Cost
The cost to respondents is estimated at $1,137,873,560.00. This is based on the estimated burden hours (6,893,678) multiplied (x) hourly rate ($20.00)
There is no record keeping burden associated with this collection.
13. Provide an estimate of the total annual cost burden to respondents or recordkeepers resulting from the collection of information.
There are also start-up costs associated with this collection, as every respondent must reprogram their computer system to report the additional requirements in fields that were not previously used. CBP checked with the private sector on this issue and they estimated that the start-up/reprogramming costs will be approximately $20,000 per respondent, for a total of $4,200,000. This is calculated by the number of respondents (210) multiplied (x) individual costs ($20,000) = $4,200,000.
14. Provide estimates of annualized cost to the Federal Government. Also provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information.
The estimated cost to the Federal Government associated with collecting the information is $1,879,912. This is based on $1,859,362 for operational processing which is calculated by the estimated hours expended (69,900) multiplied (x) hourly rate ($35.00) = $1,859,362. .
Plus the reprogramming expenses associated with the revision of this information collection. CBP estimates that reprogramming will cost $20,550. This is calculated by the estimated hours expended (513) multiplied (x) hourly rate ($40.00) = $20,550.
15. Explain the reasons for any program changes or adjustments reported in Items 12 or 13 of this Statement.
There has been no increase or decrease in the estimated annual burden hours previously reported for this information collection.
16. For collection of information whose results will be published, outline plans for tabulation, and publication.
This information collection will not be published for statistical purposes.
17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.
CBP does not seek approval to not display the expiration date.
18. Explain each exception to the certification statement identified in Item 19,
“Certification for Paperwork Reduction Act Submissions,” of OMB Form 83-I.
CBP does not request an exception to the certification of this information collection.
No statistical methods were employed.
| File Type | application/msword |
| Author | Preferred Customer |
| Last Modified By | Authorized User |
| File Modified | 2009-01-15 |
| File Created | 2009-01-14 |