Lawmakers introduced a new bill to replace the First Sale Rule with Last Sale Valuation. How will it impact companies with multi-tier supply chains?

In today’s sub-chapter:

With recent tariff changes and the end of de minimis exemptions, the First Sale Rule (FSR) has become a highly effective method for reducing import values and tariffs. 

Major global brands, including L’Oréal, Moncler, Ferragamo, and Kuros Biosciences, use FSR in their tariff planning strategy. 

Under this rule, U.S. importers can calculate customs duties based on the price paid in the first sale of goods for export to the U.S., rather than the inflated price charged by a middleman.

For example, a manufacturer in India sells machinery parts to a European distributor for $100,000, who then sells them to a U.S. importer for $150,000. With FSRe, the importer pays duties on $100,000 instead of $150,000. 

Obviously, this rule is highly effective as the price paid is often less on the first sale. Which means FEWER TARIFFS.

In his LinkedIn article on Customs Valuation and the First Sale Rule, Erik van der Hoeven, a compliance and fintech advisor, shares a simple diagram of how using FSR can lower tariffs.

On February 11, 2026, Senators Bill Cassidy (R-LA) and Sheldon Whitehouse (D-RI) introduced the Last Sale Valuation Act of 2026, which would require importers to use the last sale price instead.

Proponents and supporters argue it “closes a loophole” that undercuts U.S. manufacturers and curbs mis-invoicing. It also aims to standardize valuation, which makes sense from a global enforcement standpoint.

A 2024 CBP bulletin explains that Last Sale is generally more consistent with how transaction value should be determined and that using First Sale can make it hard for importers to meet their duty‑valuation obligations if they don’t have access to all the details of earlier sales.

If enacted, duties will be assessed based on the final transaction value of goods entering the U.S. Which means companies would declare the $150,000 resale price in our example above.

To help us better understand how First Sale and Last Sale compare at a glance, see the table below.

Here’s the official PDF of the Last Sale Valuation Act.

Such a simple bill, but the impact is significant. Yes, this isn’t just a simple customs rule change. It’s a policy shift that affects boardroom decisions.

And the impact is on importers who purchase through multi-tier supply chains using intermediaries or trading companies.

If enacted, Last Sale Valuation would: 

Theoretically, this legislation could make customs enforcement easier and increase government revenue, but it may also create compliance burdens without clear wins for all parties. 

And there are many questions that need answers. For example:

It’s too early to gauge how far this bill will go, but it has bipartisan support from members of the Senate Finance Committee. Peter Navarro, Senior White House Counselor for Trade and Manufacturing, has already voiced support for the legislation.

We can’t tell either whether Congress and the administration will pass the bill, but the fact that they have recently closed the de minimis exemption may hint at some momentum.

On the contrary, Cassidy and Senator Sheldon Whitehouse introduced a bill in 2023, the Customs Modernization Act of 2023, but it never became a law. Of course, we can never tell whether this bill will meet the same fate, but its trajectory will depend on how much bipartisan backing it gets.

On a side note, I can’t help but wonder if this is one of the U.S. government’s alternative means of imposing duties, now that Trump’s IEEPA tariffs are still being evaluated. If the tariffs are struck down by SCOTUS, the U.S. likely has a plan B. Could this be one of them? 

Anyway, for companies, especially those relying on multi-tier sourcing and using intermediary or trading company structures to import their goods, it’s time to evaluate your exposure and prepare contingency plans. While the legislation is still in the early stages, it’s time to rethink your sourcing strategy, pricing models, and compliance frameworks. 

Back in January, we shared research from the Kiel Institute for the World Economy showing that foreign exporters only absorbed about 4% of tariffs in 2025, leaving 96% to U.S. buyers.

The Federal Reserve Bank of New York report we mentioned earlier confirms this trend and breaks down how the 2025 tariff burden was shared throughout the year.

The report also sheds new light on 2025 tariff rate changes:

🤝 U.S. and North Macedonia Reach Reciprocal Trade Agreement. North Macedonia will remove duties on all U.S. industrial and agricultural exports, while the U.S. maintains a 15% tariff, with some products receiving a 0% rate. The deal also addresses non-tariff barriers, U.S. LNG sales, labor, environment, intellectual property, digital trade, and services.

📈 Italy-U.S. Trade Grows 7% in 2025 Despite 15% Tariffs. Italy’s exports to the U.S. rose 7.2% to €69.6 billion ($82.41 billion) in 2025, defying President Trump’s 15% tariffs, according to ISTAT, Italy’s national statistics bureau. Italy kept a $34.2 billion trade surplus, even as imports from America jumped 36%, and global trade surplus reached €50.7 billion.

🇨🇳 China Expands Tariff-Free Trade to 53 African Nations. Beijing will scrap tariffs for 53 African countries starting May 1, expanding its existing zero-tariff policy for 33 nations. Xi Jinping announced the move at the African Union summit in Addis Ababa, offering new trade opportunities, with Eswatini as the only exception.

A year after the U.S. ended the de minimis exemption, lawmakers have proposed the Secure Revenue Clearance Channel Act to give some low‑value shipments another route into the U.S. under a $600 threshold. This time, with lighter reporting but still subject to tariffs. 

The bill, authored by Congresswoman Carol Miller (R‑W.V.) and Congressman Don Beyer (D‑Va.), aims to reduce the backlog of imports at U.S. ports by improving coordination between express carriers and CBP.

If the bill passes, importers of low-value goods could benefit from a simpler or lower-duty process. However, they should also think about…

The bill is not a full return to duty-free trade. It offers a conditional path for low-value goods, but importers must stay ready for data requirements and enforcement.

In her latest piece for Dow Jones Risk Journal, Liz Young, a supply chain reporter, shared a great summary of how trade compliance has gone from behind-the-scenes to a must-have function for companies.

Trade compliance used to be regarded as a cost center or “insurance” function in the C-suite. Today, companies recognize that these roles protect against fines, penalties, and shipment seizures while influencing procurement, supplier vetting, and import valuation.

Follow Liz Young on LinkedIn for more updates on global trade and compliance.

Last week, we shared a Google opening for a Logistics Trade Compliance Operations Manager in Dubai. This week, Google is hiring a Trade Compliance Manager (NASA) to oversee trade compliance across North and South America.

Locations: Atlanta, GA; Addison, TX; Red Oak, TX (choose your preferred site)

Compensation: $108,000–$155,000 base + bonus + equity + benefits

Apply now!