There is a lesser -known opportunity for companies that buy international goods, especially from China to reduce their land costs and reduce tariffs. In this article we will discover the “First Sales” option.
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We have been successful in many “first sales” jobs that we have saved from 10-20 % of task costs to the United States during customs clearance.
Importers who are looking for an opportunity to reduce ground costs should evaluate whether the opportunity to use the “first” ruling on border and customs protection (CBP) may be open.
In essence, the program acknowledges that many foreign purchases are not made directly with overseas factories, but through intermediaries, which are often referred to as “buying factors”.
CBP in some import import transactions, while the cost or commission paid can be deducted from the announced value to the CBP. This makes the “first sale” law very useful in reducing tariffs and reducing ground costs.
However, do not assume that the first sales declaration is applied to all purchases through intermediaries. Contact custom consultants, lawyers and custom agents to ensure adaptation.
Program access can be challenging and requires the following steps to meet all the requirements that CBP may challenge you:
- You should put the manufacturer and the intermediary in the first sales process, which may require serious and mandatory requests, because they divide their financial arrangements that may or may have instead of former transparency, which may or may have
- You need to evaluate your supply chain seriously to make sure you can use the first sales both financially and financially.
- Importers must comply with all CBP regulations and proof of severe documentation and recording procedures.
- In addition, this requires the full cooperation and support of the manufacturer, the intermediary/purchase and custom broker.
- The proof burden is related to the importer to provide sufficient documents to use the first sales value. This requires precise recording and process management.
- Keep in mind that CBP may not agree to your use of the first sales option.
- You can always use a binding verdict from CBP actively or in most cases advisors and lawyers who specialize in commercial adaptation. Custom experienced agents may also help with the first sales process.
- The following image of ASIS shows the first export/import transactions:
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The first sales doctrine helps jobs to reduce the value of imports and tariffs when importing goods into the United States. With this tool, importers can gain a market advantage, enhance profitability, and manage their “land costs” better. Complete adaptation and documentation is very important to maximize the benefits and minimize the risks.
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