US lawmakers introduce Last Sale Valuation Act to end customs loophole

United States (US) Senator Bill Cassidy, along with Senator Sheldon Whitehouse, have introduced the ‘Last Sale Valuation Act,’ legislation aimed at closing a long-standing customs loophole that allows importers to underpay duties by declaring goods at artificially low values. The act would require tariffs to be assessed on the final sale value of imported goods rather than earlier transactions in complex overseas supply chains.

“This bill protects Louisiana workers and American businesses, ensuring loopholes don’t hold them back,” Dr Cassidy said in a press release.

US Senators Bill Cassidy and Sheldon Whitehouse have introduced the Last Sale Valuation Act to close the ‘first sale’ customs loophole that lets importers underpay duties.
The bipartisan bill would base tariffs on final sale values, strengthen US Customs enforcement and curb duty evasion.
Supporters say it will protect American manufacturers, workers and federal revenue.

If passed, the bipartisan measure would grant clearer enforcement authority to US Customs and Border Protection (CBP), streamline valuation reviews and reduce disputes over documentation, while curbing mis-invoicing and related-party pricing schemes linked to tariff evasion and illicit financial activity.

The legislation has drawn support from the American Compass, the Coalition for a Prosperous America and the Southern Shrimp Alliance.

“Cassidy’s ‘Last Sale Valuation Act’ strengthens customs valuation by assessing duties on the final transaction value of goods entering the US,” said Mark A DiPlacido, senior political economist at the American Compass, adding that closing the judicially created ‘first sale’ loophole would reduce duty evasion, simplify enforcement and increase customs revenue.

Jon Toomey, president of the Coalition for a Prosperous America, said the bill is “an important first step in restoring customs integrity,” ensuring duties are paid on the true commercial value of imported goods and helping level the playing field for American manufacturers and workers.

Fibre2Fashion News Desk (CG)