ANALYSIS: U.S. International Trade Commission Issues Report on Importers’ Use of Customs First Sale Rule

As directed by the Food, Conservation, and Energy Act of 2008, the U.S. International Trade Commission Dec. 23 issued a report of its investigation concerning importers’ use of the “first sale rule” for customs valuation. 1 At present, it is unclear whether any relationship exists between the subject matter of the ITC investigation and intercompany transfer pricing in general. But, because the first sale rule is often used by related-party importers, the possibility of such a connection is worth considering.

This article reviews the first sale rule and the recent controversy concerning its use, and then considers the ITC report’s main findings and its potential implications for the transfer pricing community. Enjoying this article? To continue reading you need to take out a FREE trial to the Transfer Pricing Library.




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