First Sale Rule Here to Stay, But CBP Looks at Deals Carefully, Practitioner Says

Though the first sale rule for valuing imports for customs purposes is “here to stay,” U.S. Customs and Border Protection is scrutinizing such arrangements carefully, a practitioner said April 4.

Charles Crowley of Sandler, Travis & Rosenberg PA in New York said during a DLA Piper webcast that taxpayers wanting to take advantage of the first sale rule must exercise due diligence in documenting the first sale price.

Crowley told Bloomberg BNA that even though CBP backed away from its plans to revoke the first sale rule several years ago, the agency is looking at such deals with great scrutiny. ...