REPORTING PROCEDURES FOR NEW FIRST SALE DECLARATION
Under the recently enacted Food, Conservation, and Energy Act of 2008, also known as the Farm Bill, a new requirement was set forth requiring that the use of First Sale be reported. For one year beginning August 20, 2008, the U.S. International Trade Commission will collect data and report the aggregate transaction value of imported merchandise for which first sale is declared as well as the aggregate value of all merchandise imported into the U.S.
Customs and Border Protection previously granted a 30-day grace period to give the trade community time to make the necessary programming changes which expires next Friday, September 19th. Importers must however, retroactively report the new data element for entries made during that period. As a result, entry summaries for entries made between August 20 and September 19 must be amended prior to the close of business on September 26.
If you have not yet contacted one of our senior consultants at Metro Customs Brokers and/or Omnitrans Inc (listed below), we urge you to do so immediately. Once again, we need confirmation that:
- You are commencing/continuing to import to the USA.
- You will be declaring a “First-Cost” value to US Customs.
- Identify, as a general rule, if you utilize “First-Cost” on an entire shipment or portions of the shipment are declared at a higher value (i.e. sale price).
- Identify any valuation changes that you have made or will be making to your US Customs documents to meet these requirements.
- Identify any shipments entered subsequent to the August 20, 2008 initiation of this flagging requirement, so that they may be amended accordingly.
This information will allow us to determine and assist you with the best course of action to be taken for properly adhering to and remaining in compliance with the US Customs requirements of “First-Cost” declaration. We look forward to speaking with you to review the above and answer any questions or concerns that you may have.
Please note that if we do not receive instructions from our importing clients to make such declarations, their entries may contain incomplete information.