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On February 9, 2023, the U.S. Court of International Trade (CIT) issued an opinion (Meyer Corp. vs. United States) that could impact the method of tariff evaluation for importing to the U.S. using the "First Sale" rule. The court's ruling emphasizes the necessity for importers to provide sufficient information to U.S. Customs when requesting approval to use the first sale for importing to the U.S.
The case involved an ongoing dispute between Meyer Corp. and U.S. Customs regarding the evaluation (and calculation of tariffs) of goods imported from China and Thailand. The transactions in question involved the production and sale of cookware between Meyer's affiliated companies. The issue raised in this case was whether Meyer Corp. needed to provide access to the parent company's accounting records to prove that the first sale prices from China were not only fair but also not influenced by China's status as a non-market economy.
The decision by the Court of International Trade, although limited to the specific facts of this case, is likely to encourage U.S. Customs to more systematically seek access to the supplier's accounting records and to more aggressively examine pricing agreements between affiliated companies involving suppliers from China. Additional analyses and further judicial interpretations may be necessary to fully address these issues and provide clarity for importers.
ExportUSA offers all logistics services for the United States. We have a warehouse in Ohio that we make available to our clients
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