U.S. Customs and Border Protection (“CBP”) has determined that it will continue to accept the First Sale Rule for purposes of valuing imported merchandise. Under the First Sale Rule, duties are applied to the price paid in the first transaction “for exportation,” even if the merchandise passes through the hands of several middlemen before arriving in the United States. As reported in previous HIGHLIGHTS, CBP in January 2008 proposed changing its method for assessing duties on imported goods to one used by other countries, which value imported goods at the price paid in the last sale prior to the goods entering the United States. Importers and trade organizations strongly opposed the proposed change because higher duties would result. CBP has now formally withdrawn the proposal. This comes after Congress, in the Food, Conservation and Energy Act of 2008 (the “Act”), required CBP to collect information from importers on whether they were using the First Sale Rule for their declared value and then to report those data to the International Trade Commission. Congress also stated that CBP could not alter the valuation method prior to January 1, 2011, and that CBP could do so then only in accordance with the terms set forth in the Act. Look for CBP to resume its campaign against the First Sale Rule some time next year.