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IMPORTERS - WHY IS AN OVERSEAS SUPPLIER ASKING FOR MY SOCIAL SECURITY NUMBER/TAX
ID NUMBER/IRS NUMBER/IMPORTER NUMBER?



Nov 15, 2021•Knowledge


INFORMATION

Title
Importers - Why is an overseas supplier asking for my social security number/tax
ID number/IRS number/importer number?
URL Name
Article-314
Summary
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Content


 

When an individual or company purchases goods from an overseas supplier, U.S.
Customs and Border Protection (CBP) considers them the ultimate importer.  The
ultimate importer can clear the goods or have a Customs Broker clear them on
their behalf.

If the supplier hires a carrier that provides door to door service, the carrier
service usually has brokers in their supply chain to clear the goods on behalf
of the ultimate importer. If a formal entry is required, CBP regulations require
the broker to put the ultimate importer's identification number on the CBP Form
7501- Entry Summary.
 
The ultimate importer's identification number is either the Employers
Identification Number (EIN) tax identification number assigned by the IRS or the
importer's social security number. The EIN is issued for the purpose of tax
administration and are not intended for participation in any other activities
(e.g., tax lien auction or sales, lotteries). For additional information about
EIN, please visit the IRS web page "Apply for an Employer Identification (EIN)
Online."

If the goods are cleared informally, the Entry Summary CBP Form 7501, bond and
identification number are not required. Goods are usually cleared informally
when they are for personal use, under $2500 in value, and are not in commercial
quantities.  However, because there are no guarantees that an entry will be
cleared informally, brokers find it helpful to have the ultimate importer's
identification number just in case.  A formal entry is usually required for
commercial importations valued over $2,500.

Because many foreign merchants are aware that CBP requires an identification
number for the ultimate importer for formal entries, they will often request the
purchaser's social security number to include on export documents that the
broker will subsequently rely on to prepare the CBP entry.

It should be noted that paperwork for goods sent by courier service does ask for
an importer number, whether the import qualifies for an informal entry or not.
Courier services file CBP entries electronically, and the software system they
use requires an identification number to be provided for the recipient of the
goods. If an identification number is not provided, the courier service is
required to file a paper entry, which is extremely time-consuming and in the
world of "Overnight Delivery" not practical.

The end result is that most courier services will not accept packages for
international delivery to U.S. residents if a recipient's identification number
is not provided by the shipper. Goods sent through the international postal
service that are under $2500 in value generally do not require an importer
number to be cleared through CBP.

 

 
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