Supporting Statement 2014

Supporting Statement

Entry Summary

1651-0022

A. Justification:

1. 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 statute and regulation mandating or authorizing the collection of information.

CBP Form 7501, Entry Summary, is used to identify merchandise entering the commerce of the United States, and to document the amount of duty and/or tax paid. CBP Form 7501 is submitted by the importer, or the importer’s agent, for each import transaction. The data on this form is used by CBP as a record of the import transaction; to collect the proper duty, taxes, certifications and enforcement information; and to provide data to the U.S. Census Bureau for statistical purposes. CBP Form 7501 must be filed within 10 working days from the time of entry of merchandise into the United States. Collection of the data on this form is authorized by 19 U.S.C. 1484 and provided for by 19 CFR 142.11 and CFR 141.61. CBP Form 7501 and accompanying instructions can be found at http://www.cbp.gov/newsroom/publications/forms.

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 information on CBP Form 7501 is vital to CBP in carrying out the regulatory requirements associated with the import transaction documentation.

Most entry summaries are filed electronically and payments for duties are made using the Automated Clearinghouse (ACH). However, if a supplemental payment is necessary after the initial ACH payment, this may be in the form of a check or cash. CBP Form 7501A Document/Payment Transmittal is used to reconcile a presented payment with the associated entry so the respondent’s account is properly credited.

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.

Approximately 97 percent of 7501 data is transmitted electronically through the Automated Broker Interface (ABI).

CBP Form 7501A Document/Payment Transmittal is not submitted electronically because it is used to transmit information and documents to CBP that are not electronic, such as check or cash payments. However, it is available electronically on the CBP website.

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, 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, applicable fees, and taxes could be significantly jeopardized if the CBP Form 7501 is not submitted as regulations prescribe.

7. Explain any special circumstances.

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.

Public comments were solicited through a Federal Register notice published on April 22, 2014 (Volume 79, Page 22519) on which no comments were received, and on July 7, 2014 (Volume 79, Page 38326) on which no comments have been received.

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.

There is no assurance of confidentiality provided to respondents. A PIA for the Automated Commercial System (ACS) dated December 2, 2008, and a SORN for ACS/ACE, dated December 19, 2008 (Vol. 73, Page 77759) will be included in this ICR.

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	8,079,363	2,450	9,903	24,262,350	20 minutes (.333 hours)
7501- Formal Entry with Softwood Lumber Act of 2008 *	266,433	210	1,905	400,050	40 minutes (.666 hours)
7501- Informal Entry	1,014,726	1,572	2,582	4,058,904	15 minutes (0.25 hours)
7501A- Document/Payment Transmittal	300	20	60	1,200	15 minutes (0.25 hours)
TOTAL	9,360,822			28,722,504

* For shipments of softwood lumber and softwood lumber products, as described in the Softwood Lumber Act of 2008, CBP collects three additional data elements.

Public Cost

The cost to respondents is estimated at $263,039,098. This is based on the estimated burden hours (9,360,822) multiplied by (x) the estimated hourly wage rate of respondents ($28.10).

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 no recordkeeping, capitalization start-up or maintenance costs associated with this collection.

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 $271,200,200. This is based on the number of responses (28,722,504) multiplied by (x) the time to process each response (0.166 hours) = 4,767,936 hours multiplied by (x) the average hourly wage rate of general CBP employees ($56.88) = $271,200,200.

15. Explain the reasons for any program changes or adjustments reported in Items 12 or 13 of this Statement.

There are no increases or decreases to the burden hours and no changes to the information collected.

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”.

CBP does not request an exception to the certification of this information collection.

2. Collection of Information Employing Statistical Methods

No statistical methods were employed.

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