First Sale Valuation is a duty reduction program designed to reduce the dutiable value of eligible products imported into the United States.
Who is a Candidate for First Sale?
Any importer of record (IOR) bringing goods into the U.S. using a ‘multi-tiered’ transaction model may be eligible for First Sale valuation. (‘Multi-tiered’ is just a way to describe a transaction with more than one party, in this case the Importer, the Middleman, and the Manufacturer.)
Ideal circumstances also include:
• Medium to High Duty Rates
• Medium to High Middleman Markup
• Medium-High FOB Volumes
• Cooperative Relationship between Middleman & Importer