Leading Freight Forwarder & Supply Chain Solution provider
- All merchandise imported into the US is subject to appraisement under customs valuation statute for assessment of duties. As per World Trade Organization (WTO), customs duties can be designated in either specific or Ad Valorem terms or as a mix of the two
- Under Ad Valorem terms, WTO stipulates that customs valuation shall, except in specified circumstances, be based on the actual price of the goods to be valued, which is generally shown on the invoice, when the goods are sold for export to the country of importation plus certain adjustments. This value is referred to as Transaction Value
- The ‘First Sale’ rule is a method used to arrive at the transaction value of merchandise which is the subject of multi-tiered sales
- The US has been appraising merchandise on the first sale basis since 1994. Macy’s (Damco’s client) has more than 40% of their cargo imported via the first sale program and it continues to grow in importance
- However, Macy’s had not been able to avail the benefits of First Sale rule as it requires timely submission of First Sale data in uniform format along with supporting documents to the US Customs from suppliers widely distributed across different locations each having different local invoicing requirements
The web-based First Sale solution allows First Sale Commercial Invoices to be created online and relevant data and documents to be sent to the broker at Customs via EDI and FTP respectively. It also allows flexibility of uploading invoices in any format and relevant data to be stored to be sent to the broker
- Timely and uniform submission of First Sale data at the US Customs when the shipment arrives, as a result, huge savings in customs valuation of the goods
- Physical documents dispatched via FTP synchronously with the data via EDI
- Visibility into saving made across different locations and also tracking First Sale versus First Cost variance across suppliers
