U.S. Senators introduce bill to change computation of import duties

Senators Bill Cassidy (R-LA) and Sheldon Whitehouse (D-RI) yesterday introduced legislation that would change the way import duties are calculated. The Last Sale Valuation Act would assess duties on the final transaction value of goods entering the United States, which could limit or eliminate the use of the so-called “First Sale” rule. According to a press release from Senator Cassidy, 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.”

What’s next?

The legislation would need to be approved by both the House and the Senate before it could go to President Trump for signature. There is no immediate plan for Congress to act on the bill.