Also known as: First sale rule, First sale for export
An alternative customs valuation method that allows using the price of the first sale in a chain of successive transactions—typically from manufacturer to middleman—as the basis for determining customs value, instead of the last sale price to the importer.
The first sale price is a customs valuation methodology recognized under the WTO Valuation Agreement (Article 1) that allows, when successive sales occur before importation, using the price of the first sale in the chain as the transaction value. This is particularly relevant when an importer purchases from a middleman (trading company) who in turn purchases from the manufacturer: the manufacturer-to-middleman price is typically lower than the middleman-to-importer price.
For the first sale price to apply, the first transaction must have been made 'for export to the country of importation.' That is, at the time of the first sale, the goods must have already been destined for the importing country.
In Mexico, applying the first sale price requires careful analysis under Articles 64-78 of the Customs Law. Companies importing through intermediaries can benefit significantly from this methodology, but must maintain robust documentation to support the valuation in case of a customs audit.
Transaction Value
The price actually paid or payable for imported goods, adjusted as prescribed by the WTO Valuation Agreement. It is the primary method for determining customs value.
TradeCustoms Value
The monetary amount on which import duties are calculated, determined according to the WTO Valuation Agreement with transaction value as the primary method.
ValuationCustoms Valuation
Process of determining the customs value of imported goods using the six methods of the WTO Valuation Agreement, used to calculate duties and taxes.
ValuationRelated Party Transactions
A legal, commercial, or control relationship between buyer and seller in an international transaction—such as subsidiaries, partners, employer-employee, or family members—that customs authorities examine to verify that the transaction price is not influenced by the relationship and reflects actual market value.