At a June 24 hearing before the Senate Finance Committee, U.S. Customs and Border Protection (CBP) Commissioner Ralph Basham said his agency is no longer trying to revoke the First Sale Rule. His testimony followed a decision by Congress to delay any change to the rule by inserting a special provision in the Farm Bill. Congress overrode President Bush’s veto of the Farm Bill earlier this month.

The first sale rule allows import duties to be based on the price set in the first sale of an item bound for importation to the United States. Early this year, CBP had proposed instead basing duties on the last sale before the item entered the United States. The proposal triggered opposition from the National Sporting Goods Association because it could have raised duties by as much as 15% on some imports.