AAFA fights for ‘First Sale Rule’
Following a proposal made by the US Customs and Border Protection in the Federal Register on January 24 to eliminate the ‘First Sale Rule’ import valuation methodology and in view of a real threat of a recession in the USA, the American Apparel & Footwear Association (AAFA) has formed a coalition of industry associations to prevent the rule change, which it claims would cost businesses and consumers millions of dollars.
The rule allows a company to base the value of an imported finished-good, for purposes of determining the duty rate, on the cost of the product at the first sale in the supply chain, rather than the value at the point of importation. According to AAFA this common method of valuation is utilised by businesses across the spectrum, and could potentially cost industries, and their customers, millions of dollars.
“Americans are already taking a hit on Wall Street,” said Kevin Burke, president and chief executive, AAFA. “Now they are going to take an extra hit at the cash register for basic needs, like clothes and shoes, because of this rash decision to overturn 20 years of precedents. The economic cost of the customs’ elimination of the First Sale Rule could potentially cancel out any positive economic stimulus plan coming from Capitol Hill.”
