Entry Summary: CBP Regulations for Importing Goods into the US

United States imports are on the rise. According to the data from the Bureau of Economic Analysis (BEA), the total volume of January 2022 imports was up $3.8 from December 2021 for a total of $314.1 billion. This continues a steady trend over the past few years — in June 2021, for example, the total volume of imports was just over $283 billion.

With higher trade volumes, however, comes greater scrutiny from Customs and Border Protection (CBP) officials, especially as port congestion remains at an all-time high. To help ensure accurate processing and approval of shipments — and to make it easier for CBP staff to reject or hold shipments that aren’t compliant — all importers of record (IORs) are responsible for completing the Entry Summary, also known as CBP Form 7501.

As one of the most important documents to file for successful imports, it’s worth understanding the basics of Form 7501: What it is, what it contains, who’s responsible for its completion, and how importers can streamline the Entry Summary completion process.

 Key Takeaways

• The IOR is ultimately held responsible for making sure that the Entry Summary details are fully reported, calculated correctly, and paid on time, however, freight forwarders or licensed customs brokers will often file the Entry Summary on their behalf.
• While using a licensed customs broker is an excellent route for importers wanting to outsource a lot of the legwork related to compliance, self-filing the Entry Summary also does have many benefits for the importer.

• Magaya Customs Compliance uses automation to reduce the amount of time importers spend completing Entry Summary documents. For example, section 301 automation allows the system to recommend potential applicable 301 tariffs/exclusions for HTS from China.

What is the Entry Summary?

According to the official CBP website, “Entry Summary refers to the documentation necessary to enable U.S. Customs and Border Protection to assess duties, collect statistics, and determine whether other requirements of law have been met.” All shipments coming into the U.S. require a completed Entry Summary or they will be denied entry.

It’s no surprise, then, that this document contains a host of information including entry type, summary data, bond type, port code, and a variety of trade and tax data to help customs officials ensure that IORs have dotted all their I’s and crossed all their T’s.

What does the Entry Summary contain?

To help companies navigate Entry Summary filings, the CBP has created a sample Form 7501 that includes detailed instructions for completion. This sample defines specific blocks and columns that must be completed along with what is expected for each block.

Form 7501 blocks and columns include:

• Block 1, Entry Number

The entry number is an 11-digit alphanumeric code that contains a three-digit filer code, seven-digit entry number, and one-digit check value.

• Block 2, Entry Type

The entry type is a two-digit code that includes the type of entry. For example, code 01 is “Free and Dutiable”, while code 05 is “Vessel Repair”.

• Block 3, Summary Date

The Summary Date is the month, day, and year that the Form is filed with the CBP.

• Block 4, Surety Number

The Surety Number is the three-digit code that identifies the surety company on the Customs Bond.

• Block 5, Bond Type

The Bond Type is a single-digit numeric code: 0 is for U.S government entries or those that don’t require a bond, 8 if for continuous entries and 9 is for single transactions.

• Column 29, HTS Number

Column 29 is the nine-digit HTS Number which should be left justified.

• Column 30, Gross Weight

Gross weight is the shipping weight in kilograms for goods entering the U.S. by any mode of transportation.

In total, there are 26 blocks and 8 columns to complete in Form 7501.

Who is responsible for the Entry Summary?

The IOR is ultimately held responsible for making sure that the Entry Summary details are fully reported, calculated correctly, and paid on time. In many cases, however, freight forwarders or licensed customs brokers will file the Entry Summary on their behalf.

Worth noting? Regardless of what type of provider is contracted to complete Form 7501, the IOR is responsible for any issues with the Entry Summary — and if these issues are substantial, they could face delayed or rejected shipments.

Can importers self-file their own Entry Summary?

Yes.

While using a licensed customs broker is an excellent route for importers wanting to outsource a lot of the legwork related to compliance, self-filing the Entry Summary has many benefits for the importer.

Some of these benefits include reduced overall costs since IORs won’t need to outsource the work and pay the fees associated with customs broker processing. Self-filing also provides direct visibility into the completion process, in turn reducing the risk of missed entry data or compliance issues.

Finally, self-filing allows organizations to reduce the total number of touchpoints required for completion and in turn limit the chance of errors. For example, if a customs broker outsources some of their Form 7501 work to another firm, this opens the door to security risks that IORs may not be aware of — but are ultimately responsible for managing.

How does Magaya Customs Compliance enable faster and more efficient Entry Summary filings?

The Magaya Customs Compliance solution can help deliver faster and more efficient Entry Summary filings for IORs thanks to features such as:

• Real-time CBP updates and alerts

By providing IORs with real-time information about relevant CBP updates and alerts, importers can make informed decisions about where, when, and how to import goods.

• Validation tools

Form field validation tools ensure the type of Entry Summary data entered is in the correct location and format. If the data entered is not correct, IORs receive an automatic warning.

• Automation capabilities

The Magaya Customs Compliance solution includes automation capabilities to help reduce the amount of time importers spend completing Entry Summary documents. For example, section 301 automation allows the system to recommend potential applicable 301 tariffs/exclusions for HTS from China

• Step-by-step tutorials

Make sure your team is prepared to fully complete Form 7501 with step-by-step tutorials. These tutorials not only limit the chance of incorrect data entry but help teams gain the confidence to complete Entry Summaries accurately and completely, in turn reducing the total amount of time required.

• Pre-filled CBP forms from Magaya Supply Chain

Easy importing of pre-filled CBP forms from the Magaya Supply Chain platform helps minimize the amount of duplicate data entry required.

• Built-in tariff classification and duty rates

Built-in tariff classification and duty rates simplify the process of getting the right rates to clients. In addition, IORs can access robust query capabilities, descriptive searches of HTS codes, and built-in links to relevant government resources and websites.

• Proactive updates to ensure compliance

The Magaya Customs Compliance solution is regularly updated to ensure that IORs have access to the latest tariff rates, form versions, and duty values to improve regulatory compliance.

Getting Form 7501 right the first time is critical for IORs to streamline shipments and ensure compliance. Self-filing 7501 makes it possible to both save money and reduce risk — discover how Magaya Customs Compliance can help.