What is “First Sale”?
“First Sale” is when a series of sales are involved – from the foreign factory to a middleman and then to the
U.S. buyer. Under “first sale” the duty is based on the value of the first sale in the series where the goods are
destined for the United States, which is typically lower than any subsequent sale. If the “first sale” was a “sale
for exportation to the United States” then the first sale (plus certain additions) can be declared as the
transaction value of the imported merchandise. U.S. CBP accepted first sale appraisement where (a) the
transaction between the factory and the middleman is a “sale” of merchandise; (2) this sale is an arm’s
length transaction, and (3) the goods are clearly destined for export to the United States as a result of this

Do you use “First Sale” valuation?
If you are currently using “first sale” valuation as your transaction value on imported merchandise, you must
report this to CBP on your entries beginning August 18, 2008.

How will you report “First Sale” valuation?
“First Sale” valuation will be reported to CBP as part of the entry summary filing. The importer must indicate on
the commercial invoice that “first sale” valuation was used in determining the transaction value of the
importation. If the commercial invoice does not indicate “first sale” and “first sale” is applicable, then you must
communicate this information to WLI either by email, fax, or letter. WLI only needs to know if “first sale”
applies, importations not using “first sale” are not required to be reported to CBP.

Section 15422(a) of the recently enacted Food, Conservation, and Energy Act of 2008
also known as the Farm Bill requires a declaration if the FIRST SALE is used at time of filing.