Interviews
AAFA launches coalition to save 'First Sale Rule'
29 Jan '08
2 min read
On Thursday, the U.S. Customs and Border Protection published in the Federal Register a proposal to eliminate the 'First Sale Rule', which is a commonly used, favorable import valuation methodology.
Today, the American Apparel & Footwear Association (AAFA) formally announced the formation of a coalition of industry associations to prevent the rule change, which would cost businesses and consumers millions of dollars.
“Americans are already taking a hit on Wall Street,” said Kevin M. Burke, president and CEO, 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.”
The First Sale 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.
This lawful, common method of valuation is utilized by businesses across the spectrum, and could potentially cost industries, and their customers, millions of dollars.
At a time when a recession is already looming, this increased cost of doing business would necessarily be passed on to consumers with inflationary retail costs.
“The American Apparel & Footwear Association vigorously attacks trade barriers, like tariffs,” declared Burke. “With a coalition of industry associations, we will defend the First Sale Rule for our members and their customers.”
Today, the American Apparel & Footwear Association (AAFA) formally announced the formation of a coalition of industry associations to prevent the rule change, which would cost businesses and consumers millions of dollars.
“Americans are already taking a hit on Wall Street,” said Kevin M. Burke, president and CEO, 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.”
The First Sale 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.
This lawful, common method of valuation is utilized by businesses across the spectrum, and could potentially cost industries, and their customers, millions of dollars.
At a time when a recession is already looming, this increased cost of doing business would necessarily be passed on to consumers with inflationary retail costs.
“The American Apparel & Footwear Association vigorously attacks trade barriers, like tariffs,” declared Burke. “With a coalition of industry associations, we will defend the First Sale Rule for our members and their customers.”
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