WASHINGTON (February 11, 2026) – U.S. Senator Bill Cassidy, M.D. (R-LA) introduced the Last Sale Valuation Act to close a decades-old customs loophole that allows importers to underpay duties, undercut American manufacturers, and put U.S. workers at a competitive disadvantage. Specifically, this bill prevents importers that exploit complex overseas transaction chains from gaming the system, strengthens U.S. supply-chain integrity, and gives U.S. Customs and Border Protection (CBP) clearer tools to stop fraud and money laundering.
“In America, we celebrate hard work—not exploiting the system,” said Dr. Cassidy. “This bill protects Louisiana workers and American businesses, ensuring loopholes don’t hold them back.”
“President Trump imposed historic tariffs to re-shore our industrial base and defend America’s economic and national security. Yet sophisticated global supply chains — aided by K Street law firms openly marketing ‘tariff mitigation’ services — are exploiting the First Sale rule to artificially lower declared customs values and erode the effectiveness of those tariffs,” said Peter Navarro, Senior White House Counselor for Trade and Manufacturing. “Chairman Mike Crapo and Ranking Member Ron Wyden on the Senate Finance Committee, along with Chairman Jason Smith and Ranking Member Richard Neal on the House Ways and Means Committee, now have the opportunity to move swiftly and on a bipartisan basis to slam shut a structural loophole that drains U.S. tariff revenue, weakens the incentive to invest in American factories, and ultimately costs American jobs.”
The Last Sale Valuation Act is endorsed by the Southern Shrimp Alliance, American Compass, and the Coalition for a Prosperous America.
“The first sale rule weakens President Trump’s trade policy by artificially lowering tariffs. It forces U.S. Customs and Border Protection to spend huge amounts of time and money policing fraudulent supply chains,” said Blake Price, Director of the Southern Shrimp Alliance. “This bill would allow CBP to focus instead on stopping unsafe products and goods made with forced, slave, or child labor from entering the U.S. market.”
“Sen. Cassidy’s ‘Last Sale Valuation Act’ strengthens customs valuation by assessing duties on the final transaction value of goods entering the United States. By closing the judicially created “first sale” loophole, this legislation will reduce opportunities for tariff evasion and money laundering, simplify enforcement of our trade laws, increase customs revenue, and help level the playing field for American workers and manufacturers,” said Mark A. DiPlacido, Senior Political Economist, American Compass.
“CPA strongly supports Senator Cassidy’s Last Sale Valuation Act because it closes a long-standing loophole that has allowed multinational importers to artificially understate the value of goods entering the United States,” said Jon Toomey, President of the Coalition for a Prosperous America. “Our customs valuation laws have been gutted six ways to Sunday over many decades. This bill, closing the infamous court-created ‘First Sale’ rule, is an important first step in restoring customs integrity. By ensuring duties are paid on the true commercial value of imported goods, this legislation strengthens trade enforcement, protects federal revenue, and levels the playing field for American manufacturers and workers.”
The Last Sale Valuation Act would:
- Ensure that importers pay duties based on the true commercial value of imported goods, rather than artificially low declared values;
- Streamline CBP operations by simplifying valuation reviews, reducing the volume of ruling requests, and minimizing disputes over documentation and transactional authenticity;
- Enhance trade transparency by limiting opportunities for mis-invoicing and related-party pricing schemes used to conceal illicit financial activity;
- Ensure reciprocal treatment, protecting U.S. jobs, and leveling the playing field for compliant American importers and manufacturers.
Cassidy was joined by U.S. Senator Sheldon Whitehouse (D-RI) in introducing the legislation.
