The following article was written by Anne Wallace of VTDigger.org.

Anne Wallace Allen is VTDigger's business reporter. Anne worked for the Associated Press in Montpelier from 1994 to 2004 and most recently edited the Idaho Business Review.

Back in July, Deringer's Director of Sales and Marketing, Jack Bender, wrote an article for SupplyChainBrain explaining the potential impacts of the tariffs that were recently put in place by the Trump Administration.  As 2019 quickly approaches, let's take a look back and see which predictions of Jack's have come to pass and which ones appear to be taking effect in the near future.

It is important to note that the landscape of international trade is constantly evolving, so be sure your compliance program is solid to ensure you are fully prepared for the changing import and export duties.

The rules and regulations regarding First Sale can easily seem overwhelming. Be sure to think over the questions presented below, and how they may pertain to your business.

There are many important questions to ask yourself while dealing with First Sale inside a multi-tiered transaction. In an ever-changing world, it is essential to stay informed on how specific rules can affect your business.

As additional duties, up to 25%, are being assessed on goods from China, the question of possibly using First Sale keeps coming up as a way to mitigate duty obligations. The First Sale rule allows importers to use the price paid in an “earlier sale” as the basis for the Customs value.

While it is true, First Sale can be accepted by CBP, an importer choosing to use this valuation method must be sure that they have done their due diligence to ensure compliance. US Customs and Border Protection (CBP) actively scrutinizes imports utilizing this valuation methodology, so exercising reasonable care is paramount.