WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) today announced its strong support for U.S. Senators Bill Cassidy, M.D. (R-LA) and Sheldon Whitehouse’s (D-RI) Last Sale Valuation Act, legislation that would close a long-standing customs loophole allowing multinational importers to artificially understate the value of goods entering the United States.
The bill would eliminate the controversial “First Sale” rule — a court-created doctrine that permits importers to calculate duties based on the price of an earlier transaction in a multi-tiered supply chain, rather than the final sale price paid by the U.S. importer. This practice enables foreign producers and multinational companies to minimize tariff liability, depriving the U.S. Treasury of revenue and undermining domestic manufacturers.
“CPA strongly supports Senator Cassidy and Whitehouse’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 step in restoring integrity to tariff collection. By ensuring duties are paid on the true commercial value of the importer’s transaction price, this legislation strengthens trade enforcement, protects federal revenue, and levels the playing field for American manufacturers and workers.”
Simply put, the “First Sale” rule premised that U.S. tax collection could be assessed against a transaction entirely between overseas, judgment-proof foreign entities.
By requiring that duties be assessed on the last sale price — the importer’s true transaction price — the Last Sale Valuation Act would:
- Ensure that importers declare values that they are accountable for;
- 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;
Closing the “First Sale” loophole is particularly important at a time when tariff enforcement plays a critical role in rebuilding domestic industrial capacity and ensuring that trade policy supports U.S. economic and national security objectives.
CPA has long advocated for reforms to strengthen customs enforcement and prevent multinational corporations from exploiting valuation rules to avoid paying their fair share of duties. The Last Sale Valuation Act represents a significant and necessary step toward modernizing and restoring integrity to U.S. customs law.
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