First Sale Indicator No Longer Required on Entry Summaries

(World Trade Interactive)

U.S. Customs and Border Protection has announced that the requirement for importers whose shipments are valued using the First Sale Rule to indicate that on their entry summaries ended effective Aug. 19. CBP was required to collect this information and forward it to the International Trade Commission, which is conducting a review of the use of the First Sale Rule for U.S. imports during the 12-month period that began Aug. 20, 2008.

The 2008 farm bill, which effectively bars CBP from proceeding with a proposal to revoke the First Sale Rule, also required importers to declare at the time a consumption entry was filed if the transaction value of the merchandise covered by that entry 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 U.S. In order to implement this requirement, importers were required to enter the letter “F” in a miscellaneous indicator field of the entry summary for each entry line where the declared transaction value of the imported goods was determined on the basis of the first sale price.

Using the information generated by these entry summaries, the ITC expects to submit to the House Ways and Means and Senate Finance committees by Feb. 10, 2010, a report that includes the following information:

• the aggregate number of importers declaring that the transaction value of the imported merchandise is determined on the basis of the First Sale Rule, including a description of the frequency of the use of that method

• the tariff classification of such merchandise on an aggregate basis, including an analysis by sector

• the aggregate transaction value of such merchandise, including an analysis by sector

• the aggregate transaction value of all merchandise imported into the U.S. during the specified period

Source document: End of Delcaration of First Sale memorandum (PDF).