Senators Bill Cassidy (R-LA) and Sheldon Whitehouse (D-RI) have introduced the “Last Sale Valuation Act,” which would revise how imported goods are valued under the Tariff Act of 1930. Under this proposal, Customs duties would be calculated on the final price paid by the U.S. buyer, the “last sale”, before entry into the United States, rather than an earlier “first sale” in the supply chain.
If enacted, this legislation would eliminate the First Sale valuation strategy that many importers have used since 1992. (You can review the full bill text here.)
This change could increase landed costs and require adjustments to existing customs valuation and compliance strategies across industries. At this time, it is not clear how much support the bill has from Senate leadership or whether companion legislation will be introduced in the House.
Deringer will continue to monitor the act’s progression and provide updates as they become available.
Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.
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