GlossaryEN1 min readUpdated: Jun 25, 2026

First Sale Rule

As of June 2026.

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Last updated: 25 June 2026Published: 24 June 2026

Source: U.S. CAFC, Nissho Iwai American Corp. v. United States (1992); 19 U.S.C. § 1401a, 19 CFR § 152.103; U.S. CBP, First Sale Declaration (cbp.gov); Last Sale Valuation Act (S., Cassidy/Whitehouse, eingebracht 11.02.2026); KPMG/Akin Gump Trade Alerts (2026). Stand: Juni 2026.

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Definition & Explanation

As of June 2026. The First Sale Rule lets U.S. importers base the customs value not on the last sale (middleman → U.S. buyer) but on an earlier, bona fide sale higher up the supply chain (e.g. manufacturer → middleman). Because prices typically accrue margins on the way to export, the lower first-sale price reduces the declared customs value and thus the duty owed — a key mitigation tool given high U.S. ad valorem tariffs. It is especially relevant for the still-active Section 232 tariffs (steel, aluminum, copper), which since 6 April 2026 apply to the full customs value rather than only the metal content, and for the Section 122 import surcharge (15%) that replaced the IEEPA/reciprocal tariffs struck down by the U.S. Supreme Court in February 2026. The legal basis is Nissho Iwai American Corp. v. United States (Federal Circuit, 1992) on transaction value under 19 U.S.C. § 1401a / the Trade Agreements Act of 1979 (19 CFR § 152.103). First sale is accepted only where three conditions are met: (1) a bona fide sale, (2) negotiated at arm's length, and (3) goods clearly destined for the United States — a complete paper trail (purchase orders, invoices) is mandatory; CBP requires a First Sale Declaration and applies strict scrutiny. The "Last Sale Valuation Act," introduced on 11 February 2026 by Senators Cassidy and Whitehouse, could abolish the rule. Not to be confused with the de minimis rule or a surcharge.

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First Sale Rule

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