Commodity Clips

US Importers Must Declare “First Sale” on Customs Entries

Effective September 20, 2008, United States Customs and Border will begin enforcing a requirement that importers declare, on the US customs entry, whether the value declared for imported goods is based on the price paid by the buyer in the first, or earlier, sale occurring prior to the introduction of goods into the US. To meet this requirement, the importer must place an “F” next to the declared value at the line level on the entry form 7501, or its electronic equivalent.

In the US, the primary method for valuing imported goods for customs purposes — the transaction value method — is based upon the price paid or payable in a sale for export to the United States. Where goods arrive in the United States as a result of a series of sales, the sale for export is regarded as the first sale in which the goods are clearly destined to the United States. (In Canada, the price is drawn from a sale to a purchaser in Canada.)