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In tomorrow’s Federal Register CBP will publish the withdrawal of its proposed interpretation of the phrase “sold for export to the United States”, which was first proposed by CBP on January 24, 2008 (FR 73 FR 4254). Under CBP’s proposed interpretation, the value of goods imported into the U.S. after a series of sales would be the last price paid or payable prior to exportation to the U.S. For transacted value, the value would be determined based on the price paid by the U.S. buyer.
Subsequent to CBP’s proposal, Congress enacted the Food, Conservation and Energy Act of 2008 (Public Law 110-246, 122 Stat. 1651 (June 18, 2008) wherein Congress prohibited CBP from implementing any change prior to January 1, 2011. Congress also directed CBP to collect information from importers for a one-year period as to whether the declared value was based on a “first sale” in a series of sales transactions. The reporting requirements expired on August 19, 2009.
CBP was also required to report the data to the International Trade Commission (ITC) and, in turn, the ITC was required to submit a report to Congress on the effect of the first sale rule on customs transactions.
CBP has recently stated its intention to withdraw its proposed interpretation.
For assistance or additional information, please contact George Tuttle, III at (415) 986-8780 or george.tuttle.iii@tuttlelaw.com.
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