First sale for export
Also called: first sale rule · earlier sale
A valuation approach in which duty is based on the price of an earlier sale in a chain, typically from manufacturer to middleman, rather than the last sale to the importer. The United States allows it under conditions set by case law; the EU under the UCC generally requires the last sale before entry, with narrow transitional exceptions that have ended.
In practice
In US imports through trading companies it can reduce dutiable value substantially, but it requires the full price chain to be documented.
USA
EURelated terms
- Transaction value
- The price actually paid or payable for goods when sold for export to the importing country, adjusted for items such as commissions, packing, assists,…
- Customs value
- The value of imported goods on which ad valorem duties are calculated. Almost all countries follow the WTO Customs Valuation Agreement, under which…