CBP to Publish Notice Withdrawing First Sale Proposed Interpretation

September 28, 2010

U.S. Customs and Border Protection (CBP) will publish a notice in the Federal Register tomorrow announcing that, effective September 29, 2010, it is withdrawing its January 24, 2008 proposal for a new interpretation of the phrase “sold for exportation to the United States” for purposes of applying the transaction value method of valuation in a series of sales importation scenario.  Under CBP’s previously proposed interpretation which was published on January 24, 2008, in a transaction involving a series of sales, the price actually paid or payable for the imported goods when sold for exportation to the United States would be the price paid in the last sale occurring prior to the introduction of the goods into the United States, instead of the first (or earlier) sale.  While this notice represents formal withdrawal of its proposal to reinterpret the phrase “sold for exportation to the United States”, CBP announced its intent to withdraw this proposal in an August 25, 2008 Federal Register notice.