The National Council of Textile Organizations (NCTO) has thrown its weight behind the Last Sale Valuation Act, urging lawmakers to change a customs practice it says has long enabled importers to understate duty values on textile and apparel shipments.
The bipartisan proposal, introduced by Senators Sheldon Whitehouse (D–Rhode Island) and Bill Cassidy (R–Louisiana), would require US duties to be assessed using “the last sale of the merchandise occurring before exportation to the United States.” That approach would replace the current “first sale” mechanism, which can allow importers to base customs value on an earlier, lower-priced transaction within a multi-step supply chain rather than on the final price paid before goods are shipped to the US.
Industry advocates argue the existing framework can systematically suppress declared values, reducing duties owed and tilting competition away from domestic producers. They also contend it can create cover for illicit financial practices, including trade-based money laundering, by obscuring the real commercial value of imported merchandise.
NCTO president and CEO Kim Glas said: “NCTO and the US textile industry strongly support the Last Sale Valuation Act, a bill that would eliminate a harmful CBP rule that significantly lowers duties paid by importers on textile and apparel goods and disadvantages US textile manufacturers in favour of countries that often employ predatory trade practices and fail to provide reciprocal market access.
“We sincerely thank Sens. Bill Cassidy (R-LA) and Sheldon Whitehouse (D-RI) for their leadership on this bill. Closing this loophole will help level the playing field, bolster the US textile industry, and spur more onshoring and investment here and in our Western Hemisphere.”
Support for the legislation also includes the Rhode Island Textile Innovation Network, Rethink Trade, and the Coalition for a Prosperous America.
Critics of the “first sale” rule say it is most frequently leveraged by large multinational importers that can point to offshore intra-company transfers—or other early-stage sales—as the declared value, even when the ultimate purchase price paid by the US buyer is higher. By shifting valuation to the last transaction before export, supporters say the Last Sale Valuation Act would better reflect the true commercial deal and create fairer conditions for smaller businesses and US manufacturers across the textile supply chain.