The below is an update to our July 21st Customer Advisory, CBP Strengthens Enforcement on First-Sale Valuation:

US Customs and Border Protection (CBP) has heightened its scrutiny of related-party and multi-tiered transactions, particularly when importers attempt to rely on the ‘first-sale’ rule to declare transaction value for customs purposes.

In a September 12th, 2025 Headquarters Ruling HQ H347879, CBP evaluated a scenario involving a multi-tiered transaction and determined that the importer had not provided sufficient evidence to demonstrate that a bona fide sale had occurred between the middleman and the foreign supplier. As a result, CBP rejected the use of the first sale rule, and the dutiable value had to be based on the last sale—the sale to the US importer. In the ruling, CBP states that providing “delivery terms listed on commercial invoices without more, such as agreements/contracts between the parties, is not sufficient evidence to demonstrate that the middleman held title to the goods or bore the risk of loss.”  The ruling also states that “relevant documents include, but are not limited to, purchase orders, invoices, proof of payments, contracts, and any additional documents (i.e. correspondence) that establish how the parties deal with one another.”

As a result of this ruling, RIM would like to emphasize the importance of maintaining sufficient documentation to support a first-sale transaction. It should also be noted that if a claim is rejected, the consequences could include:

• Retroactive Duty Payments: You may be required to pay back duties on the difference between the first-sale price and the price you actually paid to the middleman.
• Penalties: You could face significant penalties under 19 U.S.C. § 1592 for providing inaccurate or incomplete information to CBP.
• Shipment Delays and Increased Scrutiny: Your shipments may be delayed, or your company could face more intense scrutiny from CBP in the future.

RIM logistics, ltd. will continue to closely monitor this evolving situation and provide updates as necessary. Please reach out to your RIM representative if you have any further questions.