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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