Issue 54, August 21, 2009
CBP’s “First Sale” Declaration Requirement Ended August 19th
U.S. Customs and Border Protection’s (CBP) “first sale” importer declaration requirement, which has been required for a one-year period, ended on August 19, 2009.
A CBP interim rule had established this “first sale” importer declaration requirement for the period of August 20, 2008 through August 19, 2009. Under the interim rule, all importers had been required to declare at the time of filing a consumption entry when, in a series of sequential sales, the transaction value of the imported merchandise was determined on the basis of the “first or earlier sale” of goods (i.e., the first sale in which the goods are “sold for exportation to the United States” or any other sale earlier than the last sale prior to the introduction of the merchandise into the U.S.). The declaration took the form of an “F” indicator next to the declared value on CBP Form 7501 or its electronic equivalent.)
Effective Thursday, August 20, importers need no longer provide a declaration to CBP at the time of entry indicating that they are making entry utilizing the first sale rule of appraisement. Thus, entries should no longer be flagged with the "F" indicator. According to CBP sources, the ABI system will continue to accept the first sale indicator if it is submitted, even though it is no longer required.
GSP for Most Countries & ATPA/ATPDEA Scheduled to Expire on December 31st
The Generalized System of Preferences (GSP) program for most beneficiary countries is currently scheduled to expire on December 31, 2009, unless a law extending it is enacted. For AGOA beneficiary countries, both the GSP program and the AGOA-GSP program will remain in effect through September 30, 2015.
In addition, the Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) is currently scheduled to expire on December 31, 2009.
Although the U.S. Congress is continuing to work on a trade preference reform package, which would include provisions for renewal of GSP and the other trade preference programs like ATPA/ATPDEA, the Caribbean Basin Trade Partnership Act (CBTPA), etc., it may not be ready by Dec 31st.
Regards,
Paul E. Vroman
Manager, Regulatory & Compliance Consulting and Projects
DHL Global Forwarding
