Shippers Support First Sale Rule

Two groups representing large retailers and importers are urging Congress to preserve the “first sale” rule for valuing imported goods.

In a letter to the leaders of the House Ways and Means Committee and Senate Finance Committee, the American Apparel and Footwear Association and Retail Industry Leaders Association wrote that 23,000 importers recording some $38.5 billion worth of goods use first sale valuation.

“The First Sale Rule has allowed U.S. importers and exporters to remain competitive in the global marketplace and has resulted in millions of dollars in savings that are either used to help generate employment opportunities or that are passed through to American consumers,” the letter states.

First sale refers to an importer using the sale price a foreign intermediary pays to the manufacturer for goods destined for export to the United States as the basis for valuation on a U.S. importer’s customs entry documentation.

Importers protested vigorously when Customs and Border Protection proposed revoking first sale in 2008, but Congress placed a moratorium on any action and ordered research from the International Trade Commission. ITC reported its results in December.

Contact R.G. Edmonson at bedmonson@joc.com.