Effective today, September 29, 2010, U.S. Customs and Border Protection ("CBP") has withdrawn its Federal Register notice published on January 24, 2008, "which proposed a new interpretation of the phrase 'sold for exportation to the United States' for purposes of applying the transaction value method of valuation in a series of sales importation scenario." CBP's proposed interpretation would have resulted in the United States using the "last sale rule" rather than the "first sale rule" in transactions involving a series of sales. The proposal was opposed by many U.S. importer groups and business interests because it would have increased the customs value and thus, the duties, on imported merchandise involved in a series of sales prior to importation into the United States. As reported in a previous alert, CBP Commissioner Alan Bersin promised on July 22, 2010, that CBP would formally abandon its proposed use of the "last sale rule" under pressure from the trade community, and CBP's formal notice (attached) completes the revocation process.

For more information on use of the first sale rule or any import customs compliance matter, please contact:

Daniel Wendt, dwendt@milchev.com, 202-626-5898

Richard Abbey*

Saskia F. Zandieh*

*Former Miller & Chevalier attorney

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