Experienced US importers know the importance of the Customs Form 7501, and newbies into the world of importing find out quickly. The US Customs and Border Protection (CBP) determines whether or not they will release your goods from customs into the country. Therefore, the form is also called the ‘Entry Summary’. Either way, this is a make-or-break document.
COVID-19 & US Imports
It is interesting to look at the effect on US imports of the coronavirus pandemic, first identified in December 2019 in Wuhan, China, and then quickly spread across the globe. This was a period of great uncertainty for importers who had been going about their business, diligently filing their Customs Form 7501, and meeting other CBC requirements.
Data released annually by the US Census Bureau; Foreign Trade Division tells the story of importing goods (not services) in numbers (data presented on BOP bases). Since the latest data available for 2021 ends in March, let’s look at the same month in preceding years. Focusing on the import of goods, just before the COVID-19 pandemic in March 2019, imports were US 213,712 million. A year later (2020), they fell 9.16 % to US 194,146 million. Note that the drop was more significant than in exports.
This year there was a recovery with imports jumping 20.76 % to US 234,444 million. However, the total balance of US goods and services imports has been in a deficit for years. Though, overall and despite the deficit and trade wars, US importers will still be filing their Customs Form 7501 in the near and distant future.
What is Form 7501?
Why do you need a Customs Form 7501? Every imported consignment must pass through the US customs clearance process. The importer must file the Entry Summary with the CBP to do this successfully. If you understand the reason for the document, you will see that it isn’t just another frustrating form to fill out. Instead, the form helps the CBP to:
- Protect and improve US profits by evaluating the financial worth of imported goods to collect fees and taxes.
- Decide all vital information concerning the import, such as origin and category.
- Protect the country against illegal arms trafficking, copyright violations, fraud, illicit substances, and more.
Note that some products, such as medicinal drugs and food, may need permits from a relevant national agency (e.g., the FDA).
Form 7501 must describe the exact contents of the goods you are importing and country of origin, weight, quantity, and buying price.
Who fills out the form?
Some importers hire a customs broker to deal with customs clearance. The broker prepares and submits all documents to the CBP to ensure a smooth and quick release of your goods from customs. Other importers save time and money by leaving out brokers and becoming self-filers. Self-filing is a perfect solution for SMBs to increase profits and added value.
eezyimport offers a DIY Self Entry (7501) online platform that enables exactly this. Within minutes, the eezyflow™ system guides importers through the process. Besides time, resources, and cost-saving, you have complete autonomy and visibility. You can access the system anytime, anywhere (phone, desktop, tablet). Suppose you need help with our DIY Broker Entry (7501) solution. In that case, a broker will review your entry and ensure you are aligned with all regulations and ready to file.
Our company aims to empower importers with pioneering solutions that remove obstacles and ensure growth and success!
Get in touch with eezyimport today and let us discuss your success!