By Tech Legal Partners
In recent years, U.S. import tariffs have become a strategic issue for companies operating in global supply chains. In addition to ordinary duties under the Harmonized Tariff Schedule of the United States (HTSUS), many businesses are now facing additional tariffs introduced through trade and economic security measures, with a direct impact on landed costs and profit margins. As a result, tariff management can no longer be treated as a post-import compliance exercise.
Companies are increasingly integrating customs planning into their supply chain and pricing strategies to manage exposure in a lawful and sustainable way.
One of the most effective tools available under U.S. customs law is the First Sale Rule. When a supply chain involves multiple parties—such as a manufacturer, an intermediary, and a U.S. importer—this rule may allow the customs value to be based on the price of the first sale, rather than the final sale to the U.S. buyer. Because ad valorem duties are calculated on declared value, applying the First Sale Rule can lead to meaningful duty savings.
The First Sale Rule is not automatic. It requires a clearly structured supply chain, arm’s-length pricing, and evidence that the goods were clearly destined for export to the United States at the time of the first sale. U.S. Customs and Border Protection increasingly focuses on the economic substance of transactions and on the quality and consistency of supporting documentation.
For this reason, the First Sale Rule should be designed in advance, through coherent contracts and internal processes, rather than applied retroactively. When properly implemented and coordinated with other customs planning tools, it can become a practical cost-optimization strategy for companies importing goods into the United States, helping them remain competitive in an increasingly complex trade environment.