By As U.S. tariffs on imported goods rise, companies are increasingly exploring the First Sale Rule to manage costs. This legal provision permits the calculation of import duties based on the initial sale price in a multi-tiered transaction, potentially lowering the duty owed.
While the rule offers financial benefits, it also presents legal complexities. Importers must ensure strict compliance with U.S. Customs and Border Protection requirements, including detailed documentation of the transaction chain and proof that the goods were destined for the U.S. at the time of the first sale.
Legal experts advise businesses to conduct thorough audits and maintain transparent records to avoid penalties. Misapplication of the rule can lead to significant fines and reputational damage.