Recent Ruling Shows New Scrutiny on First Sale 'Flash Title' Transactions, PwC Says
A recent CBP ruling "suggests an increase in scrutiny" of transactions that involve the use of first sale for export (FSFE) and "flash title" transfers, PricewaterhouseCoopers said in a note. CBP in the ruling considered multiple scenarios and found that…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
related manufacturer and a middleman can't be considered "bona fide sales" for "first sale" appraisement purposes (see 1706300039). "While much of the ruling rested on what CBP viewed as the ambiguity and shortfalls of the submitted documentation, importers using or considering FSFE should closely review their agreements to analyze whether terms of sale are sales and risk of loss terms, to seek to steer clear of issues or facts similar to those raised by CBP in the ruling, and to align sales terms and documentation with their business and tax strategies," PwC said.