First Sale valuation 2026: what the Last Sale Valuation Act would actually break

First Sale valuation 2026 is the tariff mitigation strategy under the brightest legislative spotlight in over a decade. Senators Bill Cassidy and Sheldon Whitehouse introduced the Last Sale Valuation Act on February 11, 2026, as Perkins Coie tracks. CBP started running a randomized importer survey on First Sale usage on March 2, 2026. Together they signal that the rule that has quietly cut dutiable value for sophisticated importers is now political.

Tariff mitigation first sale rule mechanics

First Sale lets importers in tiered supply chains assess duties on the earlier transaction price rather than the final invoice to the U.S. importer. Retail Dive's worked example: a manufacturer sells a product to a middleman for $20, the middleman sells it to the U.S. importer for $80, and the importer can declare the $20 valuation as the dutiable value. With duty rates stacked into the 25% to 50% range across multiple Section authorities, the spread between first-price and last-price valuation is now the difference between a viable margin and a write-down.

What the CBP first sale survey is really measuring

The March 2 CBP survey is a precursor to a usage report that will sit underneath any future regulatory or legislative move. Perkins Coie notes that the last time CBP tried to flip to last-sale valuation, in 2008, the ITC's December 2009 study found only 8.5% of importers used First Sale, covering just 2.4% of imports by value. Those numbers gave the agency cover to back off in 2010. If the 2026 survey returns higher participation, the policy argument for keeping First Sale weakens. If participation is still narrow, importers using it correctly become a more obvious target.

Last Sale Valuation Act: what changes if it passes

The bill would require duties be assessed on the last sale that introduces merchandise into the United States—the price the U.S. buyer actually pays. Importers currently relying on First Sale would lose the dutiable-value discount entirely. Cozen's compliance breakdown is a useful reminder of what proper First Sale documentation already requires: arm's-length transactions between independent parties, written sales contracts, invoices, proof of payment, and identification of any assists. If your program is shaky on any of those four pillars, you have a documentation problem regardless of what Congress does.

How freight teams should position

Three plays. One: pressure-test your First Sale documentation now. If the LSVA passes or CBP issues new guidance, the importers who survive are the ones whose programs are clean today. Two: model the duty impact of a forced shift to last-sale valuation. For some importers, switching to bonded warehouse or FTZ structures recoups part of the loss—the trade glossary breakdowns of FTZ and bonded warehouse mechanics are a useful starting point for that modeling. Three: keep using First Sale where it qualifies—the rule is still law, and the savings on a 25% to 50% duty stack on a five- or ten-million-dollar entry book are not optional to give up voluntarily.

Customs brokers running First Sale programs across multi-tier supply chains are the front line of any LSVA response. Logistic Intel's customs brokers solution surfaces the importer-shipper relationships and tier visibility that First Sale defenses live or die on, which is the lens brokers need going into the survey response window.