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Date: Monday, August 25, 2008

Re: 

First Sale Reporting

US Customs and Border Protection (CBP) issued the following message about reporting for First Sale. While the effective date of the First Sale reporting was August 20th, CBP is allowing a 30-day grace period to allow filers to make their programming changes.

From CBP:
Automated Broker Interface

Section 15422 of the 2008 Farm Bill requires the trade to declare to CBP at the time of filing a consumption entry when the transaction value of the imported merchandise is determined on the basis of the first or earlier sale of goods.

Section 15422 of the 2008 Farm Bill describes the requirements relating to the determination of transaction value of the imported merchandise. The First Sale Declaration requirement requires that an importer of merchandise must enter an “F” when the declared transaction value of the imported merchandise is 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.

In order to implement the above provisions (First Sale indication), the Trade will be required to submit a First Sale indication at the line level for consumption summaries.

The Entry Summary (EI) Record Identifier 52 Record will be modified to accept the First Sale Indication in the new miscellaneous indicator field in Position 64 of the Entry Summary Record 52 Record:

Record Identifier 52 (Input)
Data Element L/C Position Status
Miscellaneous Indicator 1AN 64 C

The following procedure should be followed to declare if the First Sale applies or does not apply to the summary line.

The letter “F” will be entered in the miscellaneous indicator field (position 64) if the merchandise value is determined to be a First Sale transaction.

The Miscellaneous Indicator field will be left blank if the merchandise value is determined not to be a First Sale transaction.

All Consumption Entry types are subject to the First Sale Declaration (entry types: ‘'01', '02', '03', '06', '07', '11', '12', '31', '32', '34', 38')

The First Sale Indication should be printed next to the declared value on the CPB Form 7501.