First Sale’ Strategy May Reduce U.S. Customs Duties, Joel Walters and Maytee Pereira, Inbound tax

June 2014
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First Sale’ Strategy May Reduce U.S. Customs Duties, Joel Walters and Maytee Pereira, Inbound tax

At a glance

For foreign-based multinational corporations (MNCs) doing business in the United States, the amount of customs duties paid on goods entering the U.S. often is not a top-level consideration. However, many of those companies might be leaving money on the table by paying more in customs duties than is necessary.

Ninety percent of assessed U.S. customs duties are based on value, so a reduction in the value of the imported products will lead to a reduction in the duty paid. This article discusses a concept known as "first sale"’ that can help foreign MNCs achieve considerable reductions in the U.S. customs duties they pay.