U.S. Sen. Bill Cassidy (R-LA) on Feb. 11 unveiled a bipartisan bill that would close the so-called customs “first sale” loophole that currently allows importers to underpay duties, undercut American manufacturers, and put U.S. workers at a competitive disadvantage.
The Last Sale Valuation Act of 2026, S. 3841, which Sen. Cassidy sponsored alongside lead original cosponsor U.S. Sen. Sheldon Whitehouse (D-RI), would prevent importers that exploit overseas transaction chains from gaming the system, strengthen U.S. supply-chain integrity, and give U.S. Customs and Border Protection (CBP) clearer tools to stop fraud and money laundering.
“In America, we celebrate hard work — not exploiting the system,” Sen. Cassidy said. “This bill protects Louisiana workers and American businesses, ensuring loopholes don’t hold them back.”
If enacted, S. 3841 would ensure that importers pay duties based on the true commercial value of imported goods, rather than artificially low declared values.
The bill also would streamline CBP operations by simplifying valuation reviews, reducing the volume of ruling requests, and minimizing disputes over documentation and transactional authenticity.
Additionally, S. 3841 would limit opportunities for improper invoicing and related-party pricing schemes used to conceal illicit financial activity; and ensure reciprocal treatment, protecting U.S. jobs, and leveling the playing field for compliant American importers and manufacturers, according to a bill summary provided by Sen. Cassidy’s staff.
The Last Sale Valuation Act is endorsed by the Southern Shrimp Alliance, American Compass, and the Coalition for a Prosperous America.