Industry News

First Sale Indicator No Longer Required for Entries After August 19, 2009

September 1, 2009


U.S. Customs and Border Protection (CBP) has issued a Cargo Systems Messaging Service (CSMS) message informing ports and the U.S. import trade community that the filing period of the First Sale Declaration indicator ended effective August 19, 2009.

The 2008 farm bill required importers to declare at the time a consumption entry was filed if the transaction value of the merchandise covered by that entry was determined on the basis of price when the goods for first sold for export to the U.S. for a period of one year. In order to fulfill the requirement, importers were required to enter the letter “F” in a miscellaneous indicator field for each entry line where the declared entry value was determined by the first sale rule.

CBP was required to collect this information and forward it to the U.S. International Trade Commission (ITC), which is conducting a review of the use of the First Sale Rule for U.S. imports during the 12-month period that began Aug. 20, 2008. The ITC is expected to use the information collected by CBP to report to the Senate Committee on Finance and the House Committee on Ways and Means by February 10, 2010 on:

  • the aggregate number of importers declaring that the transaction value of the imported merchandise is determined on the basis of the First Sale Rule, including a description of the frequency of the use of that method
  • the tariff classification of such merchandise on an aggregate basis, including an analysis by sector
  • the aggregate transaction value of such merchandise, including an analysis by sector
  • the aggregate transaction value of all merchandise imported into the U.S. during the specified period

According to CBP sources, the ABI system will continue to accept the first sale indicator if it is submitted, even though it is no longer required.