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Customs proposes change in valuation rule
January 28, 2008

A proposed change in rules by Customs and Border Protection could result in importers paying higher duties for goods they purchase through multi-sale transactions overseas.

The proposed “Sold for Exportation to the United States” rule would eliminate “first sale” as the basis for valuation, for example, the price a foreign intermediary pays a manufacturer, before it marks up the goods for sale and export to the U.S.

Instead, importers would base valuation on the transaction value of the goods, or the last price paid before import.

Trade attorney Robert Pisani said the proposed rule is intended to bring the U.S. in line with a decision in April, 2007 by the World Trade Organization Technical Committee on Customs Valuation. He predicted rule would face a legal challenge since Customs’ existing first-sale rule is based on a series of court decisions.

Customs has set a March 24 deadline for public comment.