Tuesday, August 25, 2009
CBP’s FIRST SALE DECLARATION REQUIREMENT EXPIRES
The grace period granted to importers with regard to the implementation of the First Sale Declaration Requirement established under section 15422(a) in the Food, Conservation and Energy Act of 2008, commonly referred to as the “Farm Bill”, expired on August 19, 2009.
Background: The First Sale Declaration Requirement refers to the obligation for importers to provide a declaration to CBP at the time of entry for all goods entered for consumption or withdrawn from warehouse whether the value was determined on the basis of price paid by the buyer in the first or earlier sale occurring prior to introduction of the merchandise into the United States. To meet the requirement an importer of merchandise had to enter an “F” next to the declared value at the line level on CBP Form 7501, or the electronic filing equivalent, when the declared transaction value of the imported merchandise was determined on the basis of the price paid by the buyer in a sale occurring earlier than the last sale prior to the introduction of the merchandise into the United States.
As of August 20, 2009, the First Sale Declaration Requirement will no longer be declared and flagging entries with “F” is not required.