Issue #003 — First Sale: pre-checks that actually pass

First Sale can cut duty—if you have the paper trail. Here’s how to know before you burn cycles.

What First Sale is. Declaring customs value based on the earliest bona fide sale to a middleman—when specific conditions are met.

Pre-check list (with your broker/counsel).

• Multi-tier contracts & invoices (manufacturer → middleman → you)

• Evidence of arm’s-length and no compulsion

• Production records tying goods to the sale

• Proof the price includes assists and is the basis of transaction

When it’s likely. Stable supplier relationships, clean documentation, and no related-party complications.

Red flags. Post-imports rebates, side letters, or incomplete paperwork.

Math example. Duty 15% on $10.00 value vs First Sale $8.60 → duty drops $0.21/unit.

Do this week: Ask your broker to run a go/no-go based on your documents; if “go,” draft the evidence pack before any filing.

Disclaimer: Informational only. Broker/counsel decides and files.

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