Mollie Sitkowski Discusses What Congress’s “Last Sale” Move Means for Importers With Simply Trade

Customs and international trade partner Mollie Sitkowski sat down with the Simply Trade podcast to discuss the U.S. Senate’s proposal to eliminate the “first sale” rule.

The first sale rule applies when goods are imported in a multi-tiered transaction, such as when a foreign manufacturer sells goods to a foreign middleman that, in turn, sells the goods to a U.S. importer. When the requirements of this rule are satisfied, the transaction value of the goods for U.S. customs purposes can be determined by the price paid or payable on the first sale (e.g., the sale from the foreign manufacturer to the foreign middleman). A proposal from the Senate would eliminate the last sale rule, ensuring only the last sale price would be acceptable for transaction value.

While the proposal is still up in the air, Sitkowski encouraged individuals and businesses who could be impacted by the elimination of the first sale rule to reach out to their congressional representatives.

“This is an opportunity to talk to them in your district, and tell them exactly what implication this will have,” Sitkowski said. “… that means that local representatives can help you. If you don’t want this to pass, tell them what this is going to mean to you, and hopefully, the people’s will will win out.”