First Sale Rule
Category: Customs
Also searched as: First sale for export
Definition (plain English)
A customs valuation approach in some markets that may allow duty to be based on an earlier sale in a multi-tier transaction if strict requirements are met.
Why it matters commercially
First sale can reduce duty, but weak evidence can fail audit and create back-duty exposure.
Example
A trader kept manufacturer invoices, purchase orders, and proof of export destination before claiming first-sale value.
Common mistake
Using first sale because there are two invoices without proving bona fide sale, export destination, and acceptable documentation.
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