Tom BurtonCo-Founder, COO and CTO of LeadSmart Technologies

Why the "First Sale Rule" is so critical in today's trade environment #FirstSaleRule

Name: Why the "First Sale Rule" is so critical in today's trade environment #FirstSaleRule
Uploaded: 2025-06-11T16:44:41+00:00
Duration: 42 s
Channel: Tom Burton
Description: Tom Burton (YouTube, June 11, 2025) discusses the First Sale Rule: when a manufacturer sells to a distributor at a lower price, tariffs should be based…

11 Jun 2025 · 1 min

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Tom Burton (YouTube, June 11, 2025) discusses the First Sale Rule: when a manufacturer sells to a distributor at a lower price, tariffs should be based on that original 'first sale' price rather than higher subsequent resale prices. He raises concerns about transparency—how to trace and prove the original first sale as goods pass through intermediaries and brokers.

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So if I'm a manufacturer and I sell it to you as a distributor for $5, and you as a distributor or a broker or whatever the case may be, charged me $10, it should be. Again, the first sale rule would say that the tariffs would be based on that $5, which is the original cost of what it is. What I found interesting in here is we've talked about this a lot about transparency a lot. How, how do you, how do you, as things change hands and move through different intermediaries, how do you have the transparency of knowing what that original first sale was from the ability to then track those, those tariffs that are there?