Thursday, May 01, 2008

Fiji on First Sale

A quick update on Customs and Border Protection's effort to eliminate "first sale," sometimes called middleman," valuation:

Earlier in the week, 17 U.S. Senators sent a letter to Homeland Security Secretary Chertoff expressing "serious concern" over the move.

If this happens, the countries that feel it most will likely be developing economies with active textile sectors. Today, the Government of Fiji has acted. Fiji is concerned that changing the valuation methodology might make Fiji products more expensive in the U.S. I'm not sure whether other governments have similarly commented but one must assume that if Fiji is worried, others are as well.

3 comments:

Paul Vandevert said...

This is Paul Vandevert. I know it's your blog and you talk about what you want to talk about, not necessarily what others want to talk about, but I don't have a blog yet, so I'm making this post.

Did you notice the first three paragraphs of the Farm Bill's provisions on First Sale? Before you get to the Sense of Congress paragraph, Congress has decreed by law that beginning in August (90 days from enactment) (1) Customs will require importers to declare at the time of entry whether or not they are using First Sale or the last sale under Transaction Value; (2) Customs will provide monthly reports on First Sale entries to the USITC; (3) the USITC will issue a report to Congress at the end of 1 year (August 2009) on First Sale usage, including number of First Sale entries, entered values, duties paid, etc.

Is anyone thinking of how Customs will do this? Where in the current, largely electronic filing environment can an importer annotate its entry with any information? As I've thought ever since CBP issued the ICP on Transaction Value and Related Party transaction last April (2007), when and how does an importer even suggest to Customs the method of appraisement to be applied?

But, won't this have a probably unintended chilling effect on First Sale valuation, since importers will be nervous about how or even if they should declare First Sale on their imports?

or have I been smoking something again?

bath mate said...
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bath mate said...
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