Use of the First Sales rule for Customs Valuation of U.S Imports

USE OF THE FIRST SALES RULE FOR CUSTOMS VALUATION OF U.S IMPORTS

Where there are multiple sales of goods prior to their importation into the United States, the First Sale rule allows importers, in certain circumstances, to use the price paid in the “first or earlier sale” as the basis for the customs value of the goods rather than the price the importer ultimately paid for the goods. Under U.S. law, the preferred method of valuing imported merchandise for customs purposes is transaction value of the goods sold. When such transaction value is required and the goods are sold more than once before they are actually imported (e.g., in sales involving middlemen), the First Sale rule allows an earlier sale to be used in declaring customs value as long as that sale can be documented as a sale for exportation to the United States and the importer meets all other Customs requirements.