CBP scrutiny of flash title in first sale transactions
August 2017
Overview
A recent US Customs and Border Protection (CBP) ruling suggests an increase in scrutiny of whether there is a qualifying bona fide sale in First Sale for Export (FSFE) transactions utilizing ‘flash title’ arrangements. In its conclusion, CBP relied heavily upon transactional documentation, and related information, to determine that there were not two qualifying sales, thus denying use of FSFE upon import. To that end, importers should closely review title and risk of loss terms to address potential CBP challenges to use of FSFE.
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