Customs Valuation – First Sale Rule to continue in US
The FSR – First Sale Rule allows for duty to be assessed on the “first sale” for export to the United States, which may be the initial sale from the factory where specific conditions are met. In January, based on the suggestion of World Customs Organization's Technical Committee on Customs Valuation, CBP proposed to eliminate this favourable valuation methodology, forcing businesses to value goods based upon the “last sale” price of a product prior to its entering the U.S.
Because imported goods are marked up with each intermediate transaction, eliminating the FSR would result in higher duties for importers, which would likely be passed on to already struggling consumers in the form of higher prices.
Now the US Customs has decided not to change the law at least until 2011.