---
title: "First Sale Valuation"
description: "First Sale Valuation is a rule that lets U.S. importers, under certain conditions, base the dutiable value of imported goods on the purchase price between the vendor and factory in an earlier sale, rather than the final sale to the importer."
language: en
canonical: https://www.flex.thisisbrew.com/glossary/first-sale-valuation/
lifecycle: live
dateModified: 2026-08-20T06:44:09Z
topics:
  - "Customs & Compliance"
  - "Trade Advisory"
---

# First Sale Valuation

First Sale Valuation is a rule that lets U.S. importers, under certain conditions, base the dutiable value of imported goods on the purchase price between the vendor and factory in an earlier sale, rather than the final sale to the importer.

## What is first sale valuation?

An item being imported into the US may have been subject to several transactions, with each transaction adding to the ultimate price paid by the U.S. importer. As duties and tariffs are based on the value of goods being imported this can significantly add to the duties and tariffs due by the US importer. First Sale Valuation can be used to determine the real value of imported goods. This allows U.S. importers, under certain conditions, to base the valuation of a product entering the United States on the first or earlier sale in a series of transactions, rather than the last one. The dutiable value of a First Sale transaction is based on the purchase price between the vendor and the factory rather than the price between the vendor and the importer. As a result, duties are not paid on the vendor's markup or any additional charges from the subsequent sales. To take advantage of this the below criteria must be met:

- The goods must be destined for export to the US at the time of the first sale

- There must be at least one "bona fide sale" before the importer's purchase.

- The parties involved must be unrelated or the transactions must be conducted at "arm's length"

Back to the [full glossary](https://www.flex.thisisbrew.com/glossary/).

---

*This is a markdown version of [https://www.flex.thisisbrew.com/glossary/first-sale-valuation/](https://www.flex.thisisbrew.com/glossary/first-sale-valuation/) for AI/LLM consumption.*