First Sale Declaration Requirement

(CBP)

U.S. Customs and Border Protection’s trade office on Thursday advised the trade community of new reporting requirements to ensure that importers comply with the new declaration requirements passed in the Farm Bill related to transaction value of imported merchandise.

Effective August 20, importers are required to provide CBP with an “F” indicator next to the declared value at the line level on CBP Form 7501, or the electronic equivalent, when the declared transaction value of the imported merchandise is determined on the basis of the price paid by the buyer in a sale occurring earlier than the last sale prior to the introduction of the merchandise into the United States. This element must be submitted for each line on the entry summary, CBP form 7501. Under the Farm Bill, the declaration requirement is effective for a one year period.

Due to the complexity of the programming changes required, CBP is delaying the reporting of the First Sale Declaration Requirement for 30 days to allow the Trade time for software programming changes. However, entries subject to the First Sale Declaration Requirement that were not reported between August 20 and September 19, will require amendment. CBP will provide further guidance describing the amendments shortly. Additional information is available here.