"First Sale Rule" for Customs Valuation of US Imports - USITC
"First Sale Rule" for Customs Valuation of US Imports - USITC
"First Sale Rule" for Customs Valuation of US Imports - USITC
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The 2008 Act requires that the <strong>US</strong>ITC report the use <strong>of</strong> the <strong>First</strong> <strong>Sale</strong> rule by “tariff<br />
classification. . . .including an analysis <strong>of</strong> the tariff classification <strong>of</strong> such imported<br />
merchandise on a sectoral basis”. 1 This appendix matches the <strong>First</strong> <strong>Sale</strong> data from CBP to<br />
import data reported from the <strong>US</strong>ITC Interactive Tariff and Trade DataWeb to provide<br />
share and value, if discloseable.<br />
In certain sectors, the value <strong>of</strong> <strong>First</strong> <strong>Sale</strong> imports reported by CBP exceeds the value <strong>of</strong><br />
imports reported by DataWeb (which is based on data from the U.S. Department <strong>of</strong><br />
Commerce, Bureau <strong>of</strong> the Census). Discrepancies arise <strong>for</strong> a number <strong>of</strong> reasons but<br />
chiefly occur because the <strong>First</strong> <strong>Sale</strong> data come directly from import documents and have<br />
not been processed or adjusted by Census. 2 Census notes that its revisions have only a<br />
“negligible effect” on aggregate statistics but “can affect detailed statistics significantly.” 3<br />
Some other discrepancies arise because <strong>First</strong> <strong>Sale</strong> data include shipments from U.S.<br />
territories to the United States, but Census does not include these shipments with U.S.<br />
import statistics. 4 Table D.1 shows that known discrepancies account <strong>for</strong> only a small<br />
share <strong>of</strong> total <strong>First</strong> <strong>Sale</strong> import values, although discrepancies can be large <strong>for</strong> individual<br />
products. 5<br />
Table D.1 <strong>First</strong> <strong>Sale</strong> data discrepancies<br />
Data description a<br />
<strong>First</strong> <strong>Sale</strong> value<br />
(Millions <strong>of</strong> $)<br />
Share <strong>of</strong> total <strong>First</strong> <strong>Sale</strong><br />
value (Percent)<br />
Discrepancies <strong>for</strong> which DataWeb reports positive imports 241.7 0.63<br />
<strong>First</strong> <strong>Sale</strong> value is between 100 and 110% <strong>of</strong> customs value 50.0 0.13<br />
<strong>First</strong> <strong>Sale</strong> value is between 110 and 200% <strong>of</strong> customs value 151.8 0.39<br />
<strong>First</strong> <strong>Sale</strong> value exceeds 200% <strong>of</strong> customs value 39.9 0.10<br />
Discrepancies <strong>for</strong> which DataWeb reports no imports 1,943.8 5.05<br />
<strong>Imports</strong> in Chapters 98 and 99 321.9 0.84<br />
<strong>Imports</strong> in Chapters 1 through 97 1,621.9 4.21<br />
Import from U.S. or U.S. territory b 1,618.9 4.20<br />
Low-valued import c 1.0 0.00<br />
Other discrepancy 2.1 0.01<br />
Total 2,185.5 5.67<br />
Sources: CBP (September 2008–August 2009 <strong>First</strong> <strong>Sale</strong> data) and U.S. Department <strong>of</strong> Commerce.<br />
Note: Due to rounding, figures may not sum to totals shown.<br />
a Calculated at the HTS 8-digit rate line level <strong>for</strong> <strong>First</strong> <strong>Sale</strong> transactions reported by exporting country.<br />
b Includes American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.<br />
c Excluding low-value shipments from U.S. territories.<br />
1 Section 15422(c)(2)(B). See app. A <strong>for</strong> legislation.<br />
2 For example, <strong>First</strong> <strong>Sale</strong> data include any reported low-value imports (shipments valued at less than<br />
$2,000), while Census estimates the total value <strong>of</strong> these transactions based on historical trade patterns.<br />
Census also revises its data to reflect any corrections made by importers regarding the value or timing <strong>of</strong><br />
imports.<br />
3 Census, “U.S. Merchandise Trade Statistics; A Quality Pr<strong>of</strong>ile,” 2002, 14.<br />
4 Though not directly comparable to U.S. import statistics (and so not included in table D.3), Census<br />
does publish annual data on shipments from U.S. territories to the United States based on export<br />
classifications. Census, “U.S. Trade with Puerto Rico and U.S. Possessions, 2008,” 2009, C-1 and D-1.<br />
5 For example, limes have a <strong>First</strong> <strong>Sale</strong> value that is higher than total imports (see HTS 2008.30.66 in<br />
table D.3).<br />
D-3