Proceeds of Subsequent Resale, Disposal, or Use are amounts that accrue, directly or indirectly, to the seller as a result of the buyer's later resale, disposal, or use of the imported merchandise. Under 19 U.S.C. § 1401a(b)(1)(E), these proceeds are a statutory addition to the price actually paid or payable when computing transaction value.
The addition is intended to capture deferred or contingent payments that the parties have structured outside the invoice price but that economically form part of the consideration for the goods. Examples include:
- A share of the U.S. resale profit paid back to the foreign seller
- Royalties or fees triggered by U.S. sales that accrue to the seller
- Earn-out arrangements based on U.S. distribution performance
- Profit-split arrangements between related parties
Critically, proceeds must be quantifiable to be added to transaction value. If the proceeds depend on future events whose value cannot reasonably be determined at the time of importation, transaction value is unavailable and CBP moves to the fallback methods.
Distinguish proceeds of resale from:
- Royalties and license fees — analyzed under a separate three-part test, though some proceeds may also be royalties
- Indirect payments — part of PAPP itself, not a separate addition
- Buyer's profit on U.S. resale — non-dutiable so long as no portion accrues to the seller
Related-party transactions are the most common place to find proceeds of resale, often labeled as transfer-pricing true-ups, year-end adjustments, or distribution fees. Value reconciliation is the standard mechanism for accounting for proceeds that are determined after the goods enter.